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Differentiation of Social and Economic Situation in the Russian Regions and Problems of Regional Policy

Mikheeva Nadezhda ()

EERC Working Paper Series from EERC Research Network, Russia and CIS

Abstract: While the Russian economy as a whole in 1990s was lagging behind other post-communist countries in terms of performance and restructuring, there were considerable variations in the performance of Russian regions. The author tried to examine the effect of policy variables and initial conditions on the dynamics of interregional differentiation. The study is based on a panel data of Russian regions for 1990-1996. As measured by the change in per-capita income and gross regional product (GRP), regional trajectories seem to diverge. Whereas the influence of short- and medium-term policy variables on interregional differentiation is found to be very limited, the factors that best account for the varying performance are those relating to the initial conditions. A low starting point in terms of GRP per capita, and the size of the services sector, and a high share of agriculture correspond to a below-average performance.

Keywords: economic reform; regions of Russia; interregional differentiation; gross regional product; personal incomes; convergence; divergence; regression analysis; panel data; regional policy (search for similar items in EconPapers)
JEL-codes: R11 R15 R58 (search for similar items in EconPapers)
Pages: 46 pages
Date: 1999-10-26
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