Searching for the Value-subtraction in the Russian Economy
نویسندگان
چکیده
This paper tests the proposition that Russian nominal prices were distorted to support bankrupt sectors, which is the foundation of the virtual economy. The input-output table for 1997 is converted from rubles into dollars using American prices as shadow values. Three sectors belonging to the intermediate stage of processing are found to have negative value-added. An alternative measure of the shadow prices yields similar results. These results do not support the notion of a virtual economy because we find no evidence of price distortions benefiting producers of manufactured goods and no efficiency gain from using American instead of Russian prices. JEL code: P2, P3, P52
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