A New Role for Trade?

Abstract

This study lends considerable support to at least the first six hypotheses outlined in Chapter 1 concerning Soviet marketing and distribution. To briefly recapitulate, we have found that: (1) output of this traditionally low priority sector has grown rapidly since the time of Stalin; (2) significant quantities of labour, fixed capital and inventories have been directed to this sector and they account for most (70 per cent) of the growth in sales; (3) significant returns to scale have existed although their impact seems to have diminished over time and increased transaction size seems to have played an important part in the scale effect; (4) technological change or at least factor productivity has contributed to this growth, albeit in a relatively minor role; (5) service has improved; but (6) the quantity and quality of service still remains low and the sector is still relatively less developed than that of other economies at the same overall development level. The other two hypotheses are more speculative and they will be discussed further below.