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Incentives to Provide Local Public Goods: Fiscal Federalism, Russian Style

Ekaterina V. Zhuravskaya

Chapter 12 in The Economics of Transition, 2007, pp 424-454 from Palgrave Macmillan

Abstract: Abstract The performance of the Russian economy stands in striking contrast to the performance of several other countries in Eastern Europe and Asia that have also undertaken economic reforms. Real Russian GDP had been declining for eight years and stabilized in 19971 for a short period of time, whereas Poland and China, for example, have benefited from continued high growth. This chapter argues that inefficient intergovernmental relations are a possibly important reason why Russia lags behind other countries in economic growth. In particular, this chapter provides evidence that the structure of revenue sharing between regional and local governments affects governments’ incentives to foster business growth and to provide public goods effciently.

Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-74092-5_12

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DOI: 10.1057/978-1-349-74092-5_12

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