Institutional determinants of total factor productivity in the Russian economy

This study analyzes the impact of institutional factors on the dynamics of total factor productivity (TFP) in Russia, with particular attention to labor productivity in comparison with technical-organizational and managerial factors constraining economic growth. The research aims to identify institutional barriers, such as corruption and excessive bureaucracy, and to develop measures for their elimination in order to enhance economic efficiency. The analysis is based on secondary sources from Google Scholar, eLibrary.ru, as well as data from Rosstat, HSE, and the OECD; a graphical method was applied to assess the relationship between labor productivity, institutional factors, and investments. It was found that corruption and bureaucracy reduce labor productivity by 5–7% annually, while investments in education (0.7% of GDP in Moscow versus 0.2% in lagging regions) and infrastructure correlate with a 4–10% increase in regional GDP in diversified regions. The digitalization of public services reduces administrative costs by 30–40%. Investments in human capital and institutional reforms, including the expansion of retraining programs and digitalization, can ensure TFP growth of 2–3% by 2030, contributing to the removal of institutional constraints and fostering sustainable economic development.