Creative Destruction on the Chechen Frontier?

The economic performance of Chechnya is examined for the first time

using an aggregate stochastic frontier production function method.

The 15 sectors of the economy are found to be quite inefficient in

the use of capital and labour to produce aggregate output. Extensive

growth is likely to continue though at a lower rate as federal subsidies

from Moscow end. Intensive growth is unlikely given the lack of foreign

investment and the authoritarian political system. Some evidence

for the emergence of a market economy is found, suggesting that

Kadyrov has overseen an economic transition.