Enterprise restructuring and economic policy in Russia by Simon Commander, Qimiao Fan, Mark E. Schaffer

By Simon Commander, Qimiao Fan, Mark E. Schaffer

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Firms have been buffeted by a combination of both aggregate demand and supply shocks, including major negative effects associated with decline in Council for Mutual Economic Assistance (CMEA) and intra-former Soviet Union trade. Over time, firms have to varying degrees had to operate as if under a hard budget constraint to respond to the decline in explicit subsidies and the diminution of cheap credits. Federal government transfers declined significantly in real terms between 1992 and 1994, although the profile of local government transfers is less clear.

Vintage of the Capital Stock 261 8-5. Wage and Labor Data 262 8-6. Output, Employment Growth, and Capacity Utilization 263 8-7. Job Creation and Job Destruction, Mid-1993 to Mid-1994 264 A-1. Distribution of Sample by Ownership 279 A-2. Distribution by Size of Enterprise 280 A-3. Distribution over Industrial Branches 280 A-4. Sample Distribution over Regions 281 A-5. Enterprises within the Military-Industrial Complex (MIC) 282 FIGURES 2-1. Industrial Output and Employment, 199194 16 2-2. Change in Employment Related to Change in Output, by Industry, 1990/911994 19 2-3.

In Russia, the enterprise questionnaire that forms the basis for the research was implemented by the All Russia Centre for Public Opinion Research (VCIOM). , in March 1995, and then at a larger conference in St. Petersburg, Russia, in June 1995. The latter event was jointly organized with the Ministry of Economy of the Russian Federation and the Leontieff Center in St. Petersburg. VINOD THOMAS DIRECTOR ECONOMIC DEVELOPMENT INSTITUTE Page xii ACKNOWLEDGMENTS The editors would particularly like to thank the following colleagues at the World Bank for their support and encouragement throughout the project: Yukon Huang, Gregory Ingram, Costas Michalopoulos, Pradeep Mitra, Marcelo Selowsky, and Vinod Thomas.

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