The rise and decline of the Soviet economy

Research output: Contribution to journalArticlepeer-review


The reasons for the rapid growth of the Soviet Union before roughly 1970 and for its subsequent growth slowdown are analysed. The concentration of investment on heavy industry and soft budget constraints explain most of the growth in the 1930s. The growth slowdown was due to disastrous investment decisions following the elimination of surplus labour and the diversion of research and development resources to the military rather than the failure of firms to carry out plans or diminishing returns to capital.

Original languageEnglish (US)
Pages (from-to)859-881
Number of pages23
JournalCanadian Journal of Economics
Issue number4
StatePublished - Nov 2001

ASJC Scopus subject areas

  • Economics and Econometrics


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