Labor Productivity in Siberian Regions—is the Divergence Great: Estimates Based on a New Approach Taking Into Account Structural Differences of the Economies

A. A. Zaytsev (), O. A. Klochko () and E. Yu. Sirotin
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A. A. Zaytsev: Center for Comprehensive European and International Studies, HSE University
O. A. Klochko: Faculty of World Economy and International Affairs, HSE University
E. Yu. Sirotin: Faculty of World Economy and International Affairs, HSE University

Regional Research of Russia, 2021, vol. 11, issue 1, S35-S46

Abstract: Abstract— In this paper, we propose a new approach for assessing aggregate labor productivity (ALP), which makes it possible to eliminate the significant effect of differences in the structures of economies on the final ranking in interregional comparisons. To test this approach, we carry out calculations for the regions of the Siberian Federal District (SFD; in its former composition, including Zabaykalsky krai and the Republic of Buryatia) and obtain a new picture of the state of productivity, which more accurately reflects the real level of efficiency of regional economies in relation to the all-Russian level and in comparison with other federal districts. The paper shows the critical need to take into account differences in the structures of economies when comparing ALP. The application of the new approach leads to a lower real ALP of the SFD (by 8%), but this decrease is less significant than in other federal districts specializing in mining. The gap between the regions of the SFD in terms of ALP is smaller than previously thought (the decile coefficient is reduced by 13%) and the positions of most of them in the all-Russian rating improved. A new understanding of the positions of a number of regions in terms of efficiency within the SFD is emerged: due to strong specialization in mining, the ALP of Kemerovo oblast is reduced by 24%, and the region goes down from the third position to the middle of the rating (almost to the level of the ALP of the Altai Republic). For a similar reason, the ALP is corrected, but by a smaller amount (6–15%) in the traditional leaders of the SFD—Krasnoyarsk krai and Irkutsk oblast. The relationship between the change in ALP and level of sectoral diversification of a region’s economy is revealed. Thus, in a number of regions with resource specialization, the real economic efficiency turns out to be lower than previously assumed (by 14–24%). However, the relatively diversified and agricultural regions (Novosibirsk and Omsk oblasts, the Altai Republic) rise significantly in the all-Russian rating (by 7–14 positions) due to fairly high sectoral productivity in mining, real estate and manufacturing activities.

Keywords: aggregate labor productivity; economic structure; economic efficiency; resource sector; Siberia; interregional differentiation; industrial specialisation (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1134/S2079970522010117

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