Measuring Defense Conversion in Russian Industry

Authors

John S. Earle, W.E. Upjohn Institute for Employment Research
Ivan Komarov, University of Maryland

Publication Date

2001

Source

Defence and Peace Economics 12(2): 103-144

Abstract

This paper develops and implements a methodology for quantifying defense conversion in Russian manufacturing in the early 1990s. A two‐sector, three‐good model is employed to analyze the flows of resources from military to non‐military uses and applied to firm‐level survey data under alternative definitions of military production and the MIC. An aggregation framework is constructed to estimate the total quantity and change in Russian military production, the latter decomposed into intrafirm and intersectoral resource reallocation and overall industrial decline. Although there is evidence of substantial decline in military production, the data show little reallocation to productive civilian uses, neither within the MIC nor to other manufacturing sectors.

DOI

10.1080/10430710108404980

Publisher

Taylor & Francis

Sponsorship

Support for the research was provided by the MacArthur Foundation and the ACE-TACIS Program of the European Union (Project No. T95-4115-R)

Subject Areas

INTERNATIONAL ISSUES; International labor comparisons; Transition economies