Russian volatility: Obstacle to firm survival and diversification

Alvaro González, Leonardo Iacovone, Hari Subhash 12 February 2014

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Limited economic diversification – where production is concentrated in sectors characterised by low technology spillovers – can limit productivity growth and expose an economy to the macroeconomic instability of a fate dictated by external events. Moreover, development and diversification appear to be related. Imbs and Wacziarg (2003) show that higher per capita incomes are associated with greater diversification and then with increasing specialisation at higher per capita incomes.

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Topics:  Development Industrial organisation

Tags:  Russia, economic diversification

Diversifying Russia

Simon Commander, Alexander Plekhanov 29 January 2013

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Russia aims to diversify its economy, thereby moving away from its dependence on oil and gas. Despite much political rhetoric, our research (European Bank for Reconstruction and Development 2012) indicates that, to date, relatively little has been achieved. Oil and gas still account for nearly 70% of total merchandise exports and around a half of the federal budget. Figure 1 shows the increasing share of minerals in total exports when measured in constant prices.

Figure 1. Russia: Structure of exports in real terms (at constant prices)

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Topics:  Development

Tags:  Russia, education, skills, oil, gas, economic diversification

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