Publication:
Russia Economic Report, No. 30, September 2013 : Structural Challenges to Growth Become Binding

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dc.contributor.authorWorld Bank
dc.date.accessioned2014-01-29T21:39:57Z
dc.date.available2014-01-29T21:39:57Z
dc.date.issued2013-09
dc.description.abstractRussia's economy lost steam in 2013. Growth slowed to 1.4 percent in the first half (H1) of 2013, compared to 4.5 percent in H1 2012. This report examines in its first part several aspects of the economic slowdown. It shows that the slowdown was largely the result of weaker demand, which was due to a combination of external and domestic factors, some of which are cyclical and others structural. The structural challenges to the Russian economy and its growth, such as non-competitive sectors and markets, are another important factor to consider in the economic slowdown. The special focus note in part three of this report discusses the link between growth patterns in Russia, firm survival and diversification in manufacturing and will also highlight the impact of limited competition as a structural constraint. This note looks at the role of growth volatility as a possible explanation. It examines the role of surges and slumps in manufacturing output and its microeconomic implications in the dynamics of emergence and sustainability of nascent economic activities. The dynamics of the industrial output of the economy as whole, between 1993 and 2009, are the focus of this study. This note examines the downturns that magnify and accelerate the cleansing effects to the economy in forcing inefficient firms to exit, as well as the upturns that set the foundations of economic diversification by giving new economic activities the opportunity to emerge. This note has three main findings. First, Russian manufacturing output growth is characterized by a higher volatility than other comparator countries. Second, this volatility is mostly driven by more numerous, deeper and longer slumps and is mostly associated with aggregate slumps that have yearly effects. Third, while the economic surges increase the probability that productive firms remain in the market, the same is not true of economic slumps-older firms, not necessarily more productive ones, are more likely to survive the downturn. Furthermore, in sectors in which competition is less fierce, firms have a higher likelihood of weathering a slump.en
dc.identifierhttp://documents.worldbank.org/curated/en/2013/09/18362435/structural-challenges-growth-binding
dc.identifier.doi10.1596/16691
dc.identifier.urihttps://hdl.handle.net/10986/16691
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC
dc.relation.ispartofseriesRussian economic report;no. 30
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNT DEFICIT
dc.subjectADVANCED ECONOMIES
dc.subjectAGRICULTURE
dc.subjectANNUAL GROWTH
dc.subjectASSET PORTFOLIOS
dc.subjectAVERAGE OIL PRICE
dc.subjectBALANCE OF PAYMENT
dc.subjectBALANCE OF PAYMENTS
dc.subjectBANK LENDING
dc.subjectBANK POLICY
dc.subjectBANKING SECTOR
dc.subjectBANKING SYSTEM
dc.subjectBASIS POINTS
dc.subjectBINDING CONSTRAINT
dc.subjectBOND ISSUANCE
dc.subjectBOND MARKET
dc.subjectBOND MARKETS
dc.subjectBOND YIELDS
dc.subjectBONDS
dc.subjectBUDGETING
dc.subjectBUFFER
dc.subjectBUFFERS
dc.subjectBUSINESS CONFIDENCE
dc.subjectBUSINESS CYCLES
dc.subjectCAPITAL ACCOUNT
dc.subjectCAPITAL ADEQUACY
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL GAINS
dc.subjectCAPITAL INFLOWS
dc.subjectCAPITAL INVESTMENT
dc.subjectCAPITAL MARKET
dc.subjectCAPITAL OUTFLOWS
dc.subjectCENTRAL BANK
dc.subjectCHECKS
dc.subjectCOMMODITY PRICE
dc.subjectCOMPARATIVE ANALYSIS
dc.subjectCONFIDENCE INDEX
dc.subjectCONFIDENCE INDEXES
dc.subjectCONSOLIDATION
dc.subjectCONSUMER CONFIDENCE
dc.subjectCONSUMER DEMAND
dc.subjectCONSUMER PRICE INDEX
dc.subjectCONSUMERS
dc.subjectCONSUMPTION GROWTH
dc.subjectCONTINGENT LIABILITIES
dc.subjectCORE INFLATION
dc.subjectCORPORATE PROFIT TAX
dc.subjectCORPORATE PROFITS
dc.subjectCREDIBILITY
dc.subjectCREDIT BOOM
dc.subjectCREDIT DEFAULT
dc.subjectCREDIT DEFAULT SWAPS
dc.subjectCREDIT EXPANSION
dc.subjectCREDIT GROWTH
dc.subjectCREDIT QUALITY
dc.subjectCREDIT RISKS
dc.subjectCURRENCY
dc.subjectCURRENCY BASKET
dc.subjectCURRENT ACCOUNT
dc.subjectCURRENT ACCOUNT BALANCE
dc.subjectCURRENT ACCOUNT SURPLUS
dc.subjectCUSTOMS UNION
dc.subjectDEBT BURDEN
dc.subjectDEBT PAYMENTS
dc.subjectDEBT-SERVICING COSTS
dc.subjectDECLINE IN INVESTMENT
dc.subjectDEPOSIT
dc.subjectDEPOSITS
dc.subjectDEPRECIATION
dc.subjectDEPRESSED INVESTMENT
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDISPOSABLE INCOME
dc.subjectDIVIDENDS
dc.subjectDOMESTIC DEMAND
dc.subjectECONOMIC CONCENTRATION
dc.subjectECONOMIC COOPERATION
dc.subjectECONOMIC DEVELOPMENTS
dc.subjectECONOMIC EXPANSION
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC OUTLOOK
dc.subjectECONOMIC PERFORMANCE
dc.subjectECONOMIC POLICY
dc.subjectECONOMIC SLOWDOWN
dc.subjectECONOMIC STRUCTURE
dc.subjectEMERGING ECONOMIES
dc.subjectEMERGING MARKETS
dc.subjectEQUIPMENT
dc.subjectEQUITY ISSUANCE
dc.subjectEXCHANGE RATE
dc.subjectEXCHANGE-RATE
dc.subjectEXPENDITURE
dc.subjectEXPENDITURES
dc.subjectEXPORT GROWTH
dc.subjectEXPORT PERFORMANCE
dc.subjectEXPORTERS
dc.subjectEXPORTS
dc.subjectEXPOSURE
dc.subjectEXTERNAL DEBT
dc.subjectEXTERNAL DEBT PAYMENTS
dc.subjectEXTERNAL DEMAND
dc.subjectEXTERNAL FACTORS
dc.subjectEXTERNAL FUNDING
dc.subjectFEDERAL BUDGET
dc.subjectFEDERAL BUDGET DEFICIT
dc.subjectFINANCIAL ASSETS
dc.subjectFINANCIAL INTERMEDIATION
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL SYSTEM
dc.subjectFISCAL DEFICIT
dc.subjectFISCAL POLICY
dc.subjectFOOD PRICES
dc.subjectFOREIGN CURRENCIES
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN EXCHANGE
dc.subjectGDP
dc.subjectGLOBAL DEMAND
dc.subjectGLOBAL ECONOMY
dc.subjectGLOBAL MARKET
dc.subjectGLOBAL MARKETS
dc.subjectGLOBAL TRADE
dc.subjectGOVERNMENT BANKS
dc.subjectGOVERNMENT BUDGET
dc.subjectGROSS DOMESTIC PRODUCT
dc.subjectGROWTH POTENTIAL
dc.subjectGROWTH PROJECTIONS
dc.subjectGROWTH RATE
dc.subjectGROWTH RATES
dc.subjectHIGH INFLATION
dc.subjectHIGH-INCOME COUNTRIES
dc.subjectIMPLICIT GOVERNMENT GUARANTEE
dc.subjectIMPORT
dc.subjectIMPORT TARIFFS
dc.subjectIMPORTS
dc.subjectINCOME GROWTH
dc.subjectINDEBTEDNESS
dc.subjectINFLATION
dc.subjectINFLATION EXPECTATIONS
dc.subjectINFLATION RISK
dc.subjectINFLATION TARGETING
dc.subjectINTEREST PAYMENTS
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTEREST RATES ON LOANS
dc.subjectINTEREST-RATE
dc.subjectINTERNATIONAL CAPITAL
dc.subjectINTERNATIONAL CAPITAL MARKETS
dc.subjectINVENTORIES
dc.subjectINVENTORY
dc.subjectINVESTING
dc.subjectINVESTMENT ACTIVITIES
dc.subjectINVESTMENT ACTIVITY
dc.subjectINVESTMENT DEMAND
dc.subjectINVESTMENT INCOME
dc.subjectINVESTMENT PROJECTS
dc.subjectINVESTMENT RATE
dc.subjectLABOR MARKET
dc.subjectLACK OF CONFIDENCE
dc.subjectLOAN
dc.subjectMARKET ACCESS
dc.subjectMARKET CONDITIONS
dc.subjectMARKET PARTICIPANTS
dc.subjectMARKET RATES
dc.subjectMATURITIES
dc.subjectMATURITY
dc.subjectMONETARY POLICY
dc.subjectMONEY-MARKET
dc.subjectMORTGAGE
dc.subjectMORTGAGE INTEREST
dc.subjectMORTGAGE INTEREST RATES
dc.subjectMORTGAGE LOANS
dc.subjectNATURAL RESOURCES
dc.subjectNET EXPORTS
dc.subjectNON-PERFORMING LOAN
dc.subjectNON-PERFORMING LOANS
dc.subjectNPL
dc.subjectOIL DEMAND
dc.subjectOIL PRICE
dc.subjectOIL PRICES
dc.subjectOIL REVENUE
dc.subjectOIL REVENUES
dc.subjectOIL SUPPLIES
dc.subjectOIL SUPPLY
dc.subjectOUTPUT GAP
dc.subjectOUTTURN
dc.subjectOUTTURNS
dc.subjectPENSIONS
dc.subjectPORTFOLIO
dc.subjectPORTFOLIO QUALITY
dc.subjectPORTFOLIOS
dc.subjectPOSITIVE EFFECTS
dc.subjectPOVERTY REDUCTION
dc.subjectPRICE VOLATILITY
dc.subjectPRIVATE BANKS
dc.subjectPRIVATE CONSUMPTION
dc.subjectPRIVATE CREDIT
dc.subjectPRODUCTIVITY
dc.subjectPRODUCTIVITY GROWTH
dc.subjectPUBLIC FINANCE
dc.subjectREAL GDP
dc.subjectREAL INCOME
dc.subjectREAL WAGE GROWTH
dc.subjectREMITTANCES
dc.subjectREPO
dc.subjectREPO RATE
dc.subjectRESERVE
dc.subjectRESERVE FUND
dc.subjectRESERVES
dc.subjectRETURNS
dc.subjectSAVINGS RATE
dc.subjectSOVEREIGN BOND
dc.subjectSPECULATIVE ATTACK
dc.subjectSTATE BANKS
dc.subjectSTOCK MARKETS
dc.subjectSTOCKS
dc.subjectSTRUCTURAL CHANGE
dc.subjectSTRUCTURAL REFORMS
dc.subjectSUPPLY DISRUPTIONS
dc.subjectSUPPLY SIDE
dc.subjectTOTAL DEBT
dc.subjectTRADE BALANCE
dc.subjectTRADE PERFORMANCE
dc.subjectTRADE RELATIONS
dc.subjectTRADE SURPLUS
dc.subjectUNCERTAINTY
dc.subjectUNEMPLOYMENT
dc.subjectUNEMPLOYMENT RATE
dc.subjectUNEMPLOYMENT RATES
dc.subjectUPWARD PRESSURE
dc.subjectVALUE ADDED
dc.subjectWAGES
dc.subjectWEALTH
dc.subjectWITHDRAWAL
dc.titleRussia Economic Report, No. 30, September 2013 : Structural Challenges to Growth Become Bindingen
dspace.entity.typePublication
okr.date.disclosure2013-10-08
okr.date.doiregistration2025-05-07T11:45:57.330503Z
okr.doctypeEconomic & Sector Work::Economic Updates and Modeling
okr.doctypeEconomic & Sector Work
okr.docurlhttp://documents.worldbank.org/curated/en/2013/09/18362435/structural-challenges-growth-binding
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid390851468306268558
okr.guid597341468092956474
okr.identifier.externaldocumentum000356161_20131008122642
okr.identifier.internaldocumentum18362435
okr.identifier.report81688
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/10/08/000356161_20131008122642/Rendered/PDF/816880NWP0Russ0Box0379842B00PUBLIC0.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.countryRussian Federation
okr.topicBanks and Banking Reform
okr.topicFinance and Financial Sector Development::Currencies and Exchange Rates
okr.topicEconomic Theory and Research
okr.topicPrivate Sector Development::Emerging Markets
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicMacroeconomics and Economic Growth
okr.unitPoverty Reduction/Econ Mngmt (ECSPE)
okr.volume1 of 1
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