Defragmentation of Economic Growth with a Focus on Diversification: Evidence from Russian Economy

Abstract

In this paper, we develop a comprehensive analysis of diversification issues for Russian economy. Assessing diversification for nine different variables, we show that choice of a variable affects the result much, and that, unlike a popular opinion, equiproportional economic diversity measures are still useful in economic analysis. Developing a simple defragmentation of economic growth, we account for labor productivity and labor availability separately, and show that these components depend on different factors