Empirical analysis of regional economic performance in Russia: Human capital perspective

Vadim Kufenko

No 38/2012, Violette Reihe: Schriftenreihe des Promotionsschwerpunkts "Globalisierung und Beschäftigung" from University of Hohenheim, Carl von Ossietzky University Oldenburg, Evangelisches Studienwerk

Abstract: Having shown the important role of the Russian economy in the ex-USSR region by causality tests, we proceed to empirical analysis of growth and performance of the Russian regions. A dynamic panel data approach enabled us to obtain elasticity coefficients on proxies for convergence, physical capital, labour and innovation. After including human capital in the reformulated model we resolve endogeneity and reverse causality by introducing two instrumental variable approaches. Taking advantage of the Unified State Exam data we managed to successfully endogenize human capital by number (and share) of outperforming students and by the education index. The second approach helped to improve causality between instruments and human capital: the dates of first university foundation and distance to Moscow successfully explains human capital variations due to historical and spatial characteristics of a given region.

Keywords: growth regressions; regional analysis; human capital; system GMM; instrumental variables (search for similar items in EconPapers)
JEL-codes: C01 E24 O40 O47 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-cis, nep-edu, nep-fdg, nep-geo, nep-hrm, nep-sbm, nep-tra and nep-ure
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Citations: View citations in EconPapers (1)

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