The Transformation of the Russian Industrial Structure

Abstract

This analysis provides insight into the industrial structural transformation that Russia might experience between 2006 and 2020. The article determines that the trend of Russia's industrial structure change is from secondary to tertiary sectors by evaluating statistics on GDP and labour mobility. The study also reveals that significant occurrences including the 2008 financial crisis, the 2014 Ukrainian conflict, and Putin's reelection in 2020 all had a detrimental effect on Russia's industrial structure. By introducing a number of metrics, including GDP, labour force population, unemployment rate, and significant events, the article further concludes that these elements are the primary ones impacting the industrial structure. The Thiel index is introduced at the end of the paper to assess the rationality of Russia's industrial structure. This study analyses how Russia's industrial structure is changing through in-depth case studies and empirical research. It focuses in particular on the effects of economic events, policy, employment, and GDP on industrial structure, filling a vacuum in earlier research. Thirdly, this study also resolves the debate over the effects of policy, employment, and GDP on industrial structure, and it constructs a regression model for further empirical investigation.