Abstract
We study TFP growth in Russia in 2009—2015 using firm-level data. Our results reveal that the productivity gap between technology leaders and lagging firms accumulated over the observed period. Technology diffusion from leaders to less efficient firms in Russia stays rather limited resulting in relatively low average TFP growth. The market share of less efficient firms shrinks over time but they do not exit the market. As a result, scarce recourses stay locked in inefficient production.
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