Putin’s Mega Firms Are Crowding the Path to Faster Growth

Putin’s Mega Firms Are Crowding the Path to Faster Growth

(Bloomberg) -- Many of Russia’s biggest industries are highly concentrated, according to a Bloomberg Economics analysis based on Herfindahl-Hirschman indexes. Though not extreme relative to other countries, the degree of market power for dominant companies could limit innovation, frustrating President Vladimir Putin’s efforts to raise living standards. His bid to boost GDP growth toward 4 percent would probably require a deeper restructuring of the economy.

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