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Russia’s regions: governance and Well-being, 2000-2008

Alisher Akhmedjonov, Irina Il’ina (), Carol Leonard (), Zafar Nazarov (), Evgenij Plisetskij () and Elena Vakulenko ()
Additional contact information
Irina Il’ina: National Research University Higher School of Economics
Zafar Nazarov: Cornell University
Evgenij Plisetskij: National Research University Higher School of Economics

Authors registered in the RePEc Author Service: Evgenij Pliseckij () and Irina Ilina ()

HSE Working papers from National Research University Higher School of Economics

Abstract: This paper assesses the impact of the quality of governance on economic performance in Russia’s 83 regions (Oblasts, Republics, Krais and Okrugs) from 2000 to 2008, a period of rapid economic advancement. Defining governance broadly as how authority is exercised, and using as a proxy a measure of the investment risk by region, this paper contributes to the literature on identifying the economic impact of governance. Our results find a significant association between governance in Russia’s diverse regions and economic well-being, that is, we find a performance gap in government practices. Specifically, our study shows that the main components of effective governance are the ability of the government to run effective public health programs aimed at decreasing the overall mortality rate among the working-age population, to create fair labor market conditions for all individuals who are still capable of working, and to improve the investment climate in the region leading to a higher level of investment in fixed assets. Our results implicitly suggest that effective governance comprises the tangible aspects of policymaking such as the adoption of effective public health, investment and labor policies and most importantly, for the regions of Russian Federation, although effective governance can be also an artifact of unobserved and unmeasurable managerial attributes of the local government to implement federal and region level laws and regulations

Keywords: governance; Russian regions; well-being; economy; Russia; investment; investment risk; mortality; public health; labor market (search for similar items in EconPapers)
JEL-codes: O47 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2013
New Economics Papers: this item is included in nep-cis, nep-cwa, nep-hap and nep-tra
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Published in WP BRP Series: Economics / EC, December 2013, pages 1-25

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Persistent link: https://EconPapers.repec.org/RePEc:hig:wpaper:42/ec/2013

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