By Raj M. Desai, Itzhak Goldberg
In recent times, the Russian executive, focused on maintaining its financial functionality, has sought to advertise extra varied and broader financial progress past the ecocnomic natural-resource area. monetary officers want to see anything towards a "knowledge-based economy". one of many parts in transparent want of upgrading is the producing area. This booklet quantifies and benchmarks the relative strengths of that zone, picking out possibilities to extend Russian productiveness and competitiveness.Drawing on unique survey information from Russian businesses of all sizes, the authors formulate proposals that target to: improve the cutting edge power of Russian companies; improve the talents in their staff; and enhance a business-friendly weather of decrease administrative charges and larger coverage sure bet. This booklet examines the underlying firm-level determinants of data absorption, competitiveness, and productiveness, with an eye fixed to enhancing employees' ability degrees and enhancing the funding weather, which may still in flip increase the innovation had to sustain in a globalized economic climate. the unique learn and research of Desai, Goldberg, and their colleagues might be of use to a person drawn to the issues of establishing production competitiveness, in particular in Russia and the post-Soviet transition economies. it is going to even be of curiosity to companies planning on doing enterprise with Russia or to take a position in it.
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Additional resources for Can Russia Compete
The reason is that labor productivity is closely connected to firm size—larger firms are more capital intensive and therefore would have higher labor productivity. 9 The analysis here does not support the hypothesis that the productivity profile is different for older and newer firms. In other words, the labor productivity distributions of the Russian manufacturing firms entering at different periods are statistically indistinguishable. 10 Determinants of Productivity Growth After fifteen years of transformation, the Russian productivity gap today cannot be explained simply by reference to transition shocks or to the inefficiencies inherited from the Soviet period.
One answer is obvious: the R&D and human capital capacities are ineffective because they are deployed in an environment characterized by weak investment and ineffective economic institutions. The investment climate has many aspects, and measuring its quality is challenging, especially across countries. The analysis here exploits the largescale data collection conducted for the BEEPS-Enterprise surveys and uses a standard section in the questionnaires in which managers are asked about the constraints facing their businesses with regard to infrastructure, state regulations, macroeconomic stability, legal system, corruption, and so on.
Manufacturing value added per worker is about the same in Russia as in China. Note that the relatively strong ruble in 2004 raises measured manufacturing output per worker using current exchange rates and that the adjustment for transfer pricing does the same. So in that respect, estimates of manufacturing productivity in Russia reported in table 2-2 are generous. Benchmarking of TFP in BEEPS and Enterprise Surveys A similar picture emerges when TFP is estimated directly using a very different data source, the Business Environment and Economic Performance Survey (BEEPS).