Russian Manufacturing and the Threat of 'Dutch Disease' - A Comparison of Competitiveness Developments in Russian and Ukrainian Industry

58 Pages Posted: 19 Nov 2008

See all articles by Rudiger Ahrend

Rudiger Ahrend

Centre for Entrepreneurship, SMEs, Regions and Cities

Donato De Rosa

World Bank

William Tompson

OECD

Multiple version iconThere are 2 versions of this paper

Date Written: January 25, 2007

Abstract

This paper examines the development of Russian industry in comparison with that of Ukrainian industry during 1995-2004 in an effort to ascertain to what extent, if any, Russian manufacturing showed signs of succumbing to 'Dutch disease'. Ukraine and Russia began the market transition with broadly similar institutions, industrial structures and levels of technology, and the economic reforms implemented in the two countries were also similar, although Ukraine was reckoned to lag behind Russia in many areas. The main difference between them is Russia's far greater resource wealth. It follows that differences in industrial development since 1991 may to some degree be attributable to differences in initial natural resource endowments. In short, Ukraine could provide a rough approximation of how a resource-poor Russia might have developed over the transition.

Keywords: Russia, Ukraine, Dutch disease, natural resources, oil, gas, transition, industry, productivity, competitiveness, revealed comparative advantage, restructuring, unit labour costs, wages

JEL Classification: J24, L60, O57, P23, P27, Q33

Suggested Citation

Ahrend, Rudiger and De Rosa, Donato and Tompson, William, Russian Manufacturing and the Threat of 'Dutch Disease' - A Comparison of Competitiveness Developments in Russian and Ukrainian Industry (January 25, 2007). OECD Economics Dept. Working Paper No. (2006)68, Available at SSRN: https://ssrn.com/abstract=959619 or http://dx.doi.org/10.2139/ssrn.959619

Rudiger Ahrend (Contact Author)

Centre for Entrepreneurship, SMEs, Regions and Cities ( email )

2 rue Andre Pascal
Paris, 75016
France
75016 (Fax)

Donato De Rosa

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

William Tompson

OECD ( email )

2 rue Andre Pascal
Paris Cedex 16, 75775
France

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