By Roger Skurski
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Additional resources for Soviet Marketing and Economic Development
Urbanization means a definite way of life with concomitant needs and their satisfaction' (Hoch, 1977, pp. 133-4). Although we view the growth of this sector principally as the product of economic development and quantitative inputs, we contend that technological change or productivity improvements also must have played a role, be it only a minor one. The level of sophistication of Soviet trade was so low at the end of the Stalin era, it would have been difficult for it not to have improved and contributed to growth.
Not only merchants but also secondgeneration merchants are more likely to possess whatever is needed to make the switch from trade to industry. Alexander offers several possible reasons for these results. First, merchants are already entrepreneurs as they are accustomed to responding to market incentives and exposing themselves to the risks involved in doing business. Second, merchants possess particular business skills, namely those used in buying, selling, employing others, and in making contracts.
They are: 1. Output of the internal trade sector has grown rapidly from 1950 to 1978. 2. Growth in physical inputs has been significant and accounts for most of this. 3. Developmental factors such as increasing scale, education and transaction size explain another important part. 4. Technological change or at least productivity growth has also contributed. 5. At the same time, service has improved. 6. However, tlie distribution sector remains underdeveloped. 7. For Soviet growth and development to continue, a higher priority must be given to the entire consumer sector.
Soviet Marketing and Economic Development by Roger Skurski