On Dynamics of Total Factor Productivity in the Russian Economy in Transition

Abstract

The paper is devoted to the analysis of dynamics of total factor productivity (TFP) in the Russian economy in transition and its industries. Several estimations of dynamics of TFP are constructed, including those accounting for capacity utilization, for much higher efficiency of new fixed capital, and for the hours worked.

  It is shown that the worst dynamics of TFP is demonstrated by industries with rather successful dynamics of output and not having sufficient stimulus to improve productivity. The best dynamics of TFP, at least, at a stage of domination of the tendencies of growth, is demonstrated by industries with relatively less successful dynamics of output, not monopolized and faced with rigid demand constraints.

          The carried out analysis of dynamics of TFP shows that the situation in the Russian economy is not so pessimistic, as it follows from the analysis of dynamics of output and its structure.