Productivity Spillovers in the Russian Federation: The Case of Chemical Market

Over the last decades, much attention has been drawn to the question of productivity variation across countries. The differences in cross-country productivity could be explained by both foreign and domestic 􏰏􏰖􏰖􏰒􏰚􏰜􏰙􏰏􏰒􏰖􏰃􏰄􏰅􏰖􏰄􏰒􏰔􏰗􏰎􏰔􏰄􏰙􏰒􏰄􏰎􏰐􏰙􏰏􏰛􏰜􏰙􏰎􏰄􏰙􏰍􏰎􏰄􏰏􏰖􏰳􏰑􏰎􏰖􏰘􏰎􏰄􏰒􏰓􏰄􏰙􏰍􏰎􏰄􏰓􏰒􏰔􏰛􏰎􏰔􏰠􏰄􏰙􏰍􏰎􏰄􏰏􏰖􏰙􏰎􏰔􏰖􏰜􏰙􏰏􏰒􏰖􏰜􏰟􏰄􏰙􏰔􏰜􏰖􏰐􏰓􏰎􏰔􏰄􏰒􏰓􏰄􏰙􏰎􏰘􏰍􏰖􏰒􏰟􏰒􏰕􏰞􏰄􏰐􏰍􏰒􏰑􏰟􏰗􏰄 be considered. Foreign direct investment (FDI) and international trade are suggested to be major conduits of international technology transfer. The present paper aims to extend the current empirical literature by determining the effect and the source of productivity spillover in Russia in case of chemical industry. In order 􏰙􏰒􏰄􏰮􏰖􏰗􏰄􏰒􏰑􏰙􏰄􏰙􏰍􏰎􏰄􏰎􏰨􏰏􏰐􏰙􏰎􏰖􏰘􏰎􏰄􏰒􏰓􏰄􏰦􏰊􏰅􏰄􏰜􏰖􏰗􏰄􏰏􏰖􏰙􏰎􏰔􏰖􏰜􏰙􏰏􏰒􏰖􏰜􏰟􏰄􏰙􏰔􏰜􏰗􏰎􏰄􏰝􏰔􏰒􏰗􏰑􏰘􏰙􏰏􏰚􏰏􏰙􏰞􏰄􏰐􏰝􏰏􏰟􏰟􏰒􏰚􏰎􏰔􏰄􏰢􏰎􏰄􏰜􏰝􏰝􏰟􏰏􏰎􏰗􏰄􏰙􏰍􏰎􏰄􏰛􏰎􏰙􏰍􏰒􏰗􏰒􏰟􏰒􏰕􏰞􏰄 developed by Ericson and Pakes (1995) and Olley and Pakes (1996). The econometric model was tested on the companies from chemical industry for the period 2007–2012. The empirical results show that FDI and international trade productivity spillovers are present in Russian chemical industry. The size of FDI spillovers is economically more important than imports-related spillovers. Based on the empirical results, we may predict that Russia’s accession to the World Trade Organization in 2012 should result in productivity growth. However, further research on this topic will be possible when the statistical data becomes available for several years after accession.