The Stagnation of the Russian Economy and the Slowdown in Productivity Growth in OECD Countries: is there a Connection?

Productivity stagnation has become a global phenomenon. Over the past decade, countries around the world, including Russia, have been facing this problem. This paper investigates the impact of global productivity slowdown factors in Russia using the method of decomposition of productivity into intra-industry productivity and reallocation. As a result, it turned out that all three global slowdown trends put forward as a result of the literature review were noticeable in Russia. The intra-industry component is the main source of the slowdown in Russia, with the slowdown occurring mainly in the manufacturing and information communications sectors. Moreover, the slowdown in productivity growth in Russia's manufacturing industry is mainly driven by transport equipment production. The construction sector in Russia is also stagnating strongly. Further research should be directed towards a detailed examination of the structure of the sectors that are experiencing severe slowdowns and different scenarios for implementing different policies to stimulate the productivity growth.