ABSTRACT
This chapter addresses internal determinants of economic growth in Russia and points out that economic growth depends on labor, real capital stock, and total factor productivity. This chapter comes from the premise that the structure of the national economy has an impact on the economic performance and the resulting GDP. The structure of the national economy also determines its ability to transform, adopt, and absorb foreign aid in order to initiate and sustain economic growth. This chapter utilizes statistical data on the value of real GDP at factor cost, real agriculture, real industry, real manufacturing, and real services. Statistical data on the change in the value of real GDP indicate that the Russian economy attempts to achieve steady 2 percent growth. The total growth in the real stock of fixed assets, including machinery, equipment, and buildings, observed in the Russian economy, remains positive during the entire studied period of economic transition. This chapter also follows the changing structure of the national labor market. The use of labor in the Russian economy can be more effective.
