1887

OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

What makes a productive Russian firm? A comparative analysis using firm-level data

Productivity in Russia has fallen steadily over the past 15 years. This paper explores micro-level data to understand the contribution of individual firms to aggregate productivity. Overall, firm-level data corroborate the decline in aggregate productivity and a widening productivity gap against several European countries. They also show that the gap between “the best” and “the rest” has widened in Russia, similar to other countries. Russian markets are quite concentrated, i.e. dominated by few large firms. Larger firms tend to be more productive, but firms at the productivity frontier have become smaller and younger over time, suggesting that more support for young and innovative firms could help raise productivity. Foreign ownership is associated with higher productivity, and there is evidence that foreign firms generate positive productivity spillovers for domestic firms. Service firms belong to the most productive, yet the service sector remains underdeveloped. Mining is also very productive but less than in other countries. Differences in productivity across regions are large, even controlling for many other determinants, suggesting a lack of capital and labour mobility and knowledge transfer across regional borders.

English

Keywords: regional productivity differences, firm-level productivity, Russian economy, entry and exit of firms, productivity gap, privatisation, foreign ownership, industrial organisation
JEL: O43: Economic Development, Innovation, Technological Change, and Growth / Economic Growth and Aggregate Productivity / Institutions and Growth; D24: Microeconomics / Production and Organizations / Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity; L16: Industrial Organization / Market Structure, Firm Strategy, and Market Performance / Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error