Explaining Russia's Output Collapse: Aggregate Sources and Regional Evidence

by Irina Tytell

All the transition economies of Eastern Europe and the Baltics, Russia, and other former Soviet Union countries (henceforth "BRO") have experienced major declines in output after the launch of economic reforms. The magnitude and the duration of the "transition recession" varied greatly across countries, from Poland that lost 14 percent of output over 2 years to Ukraine that lost 58 percent over 6 years2. The BRO countries were generally hit harder during the reform period, with the average output fall nearly twice as large as that in Eastern Europe. As much as 75 percent of the total BRO output during this period was accounted for by Russia, by far the largest economy in the region. The reforms in Russia started in 1992 and were accompanied by an output fall that continued uninterrupted till 1997, resulting in a cumulative output loss of 40 percent relative to 1991.

34 pages, Kindle Edition

First published February 1, 2001