ABSTRACT
This chapter examines the short--run impact of imported technology on production and productivity growth. It also examines the ferrous metals industry in an attempt to analyze the short-run impact of imported technology on production and productivity growth while taking account of the institutional setting within which Soviet enterprises operate. The problems concerning assimilating new technology complicate the ability to diffuse that technology as well. The exclusive bureaucratic lines of authority established over each branch of production impede the assimilation of foreign technology in one branch ministry which requires new or higher quality inputs from other branch ministries. The chapter describes why Imported metallurgical technology did not significantly improve the yield, quality and assortment of ferrous metals products. Most of the metallurgical equipment imports are composed of rolling equipment. The extensive shortcomings and poor performance in the rolling sector indicates why this sector has been and continues to be the sector most heavily dependent on imports of equipment.
