Upgrading Russian enterprises from the value chain perspective: the case study of tube & pipe, and furniture sectors
Svetlana Avdasheva (),
Victoria Golikova and
Andrei Yakovlev ()
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Igor Budanov: Institute of Economic Forecasting, Russian Academy of Sciences
No 58, UCL SSEES Economics and Business working paper series from UCL School of Slavonic and East European Studies (SSEES)
The paper is the first analysis of the competitiveness of Russian enterprises from the perspective of value chains, with a focus on the example of tube & pipe and furniture producers. In both industries, Russian firms enjoy an advantage on the raw material side. Nevertheless, the overall competitiveness level of Russian producers remains modest. Domestic industries primarily owe decreased competitiveness to the inadequate operation of the final links in the value chain: from end-product production to the end-user. In addition, the competitiveness of domestic producers is limited to the ability of key players in the chain to redistribute additional gains in their own favor. Study shows that any non-selective methods of supporting enterprises (such as tax reductions) exert extremely limited influence on the status of players in those chains where one of the links is characterized by serious entry barriers and related opportunities of rent redistribution in favor of a particular player. Paper suggests several policy measures which aim to improve the ability of the producers to reposition themselves along the chain or to modify the chain itself.
Pages: 17 pages
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Persistent link: https://EconPapers.repec.org/RePEc:see:wpaper:58
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