Dynamics the Transaction Sector of the Russian Economy: As Taught by D. North

Abstract

The paper considers the methods of transactional costs measuring on the micro- and macrolevels on the basis of Russian scientists works. The conclusions on application of direct and indirect calculation methods and explicit and implicit costs on the microlevels are made. Transactional costs are estimated using the method by D. North and J. Wallis. However besides this approach the methods of transactional costs calculation using gross output share (and its components) of transactional sector in gross output (and its components) in the whole economy. In a whole, on the macrolevel the method of direct count and relevant statistical date are mainly applied. The paper applies two approaches to assess changes in transactional sector of modern Russian economy: the North-Wallis approach (transactional share in GDP/GNP of a country) and the author's approach which estimates dynamics of gross output of transactional sector in gross output of the whole economy. The informational base of the research was the Russian national accounting system for 2002–2014. We considered structure and dynamics of gross output and GDP of Russian economy and estimated its productivity degree. Also we investigated trends in development of basic (transformational) and transactional sectors of the economy, revealed leading branches in GDP production and in relative production productivity. We analyzed rates of gross added value growth in both sectors. Transactional costs of the Russian economy are estimated using two approaches, correlation links between transactional costs per unit spent for economy gross output in comparable prices and real gross output and its components growth rates are revealed. Also we showed influence of transactional costs on GDP dynamics. Conclusions on trends in transactional sector alteration and its influence on dynamics of main macroeconomic parameters significantly differ from those made on the basis of analogous calculations for the years 1990–2001.

Keywords

• base sector
• gross output
• GDP
• Douglass North
• value added
• productivity of economy
• transaction costs
• transaction sector
• Russian economy