Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/124212 
Year of Publication: 
2014
Series/Report no.: 
54th Congress of the European Regional Science Association: "Regional development & globalisation: Best practices", 26-29 August 2014, St. Petersburg, Russia
Publisher: 
European Regional Science Association (ERSA), Louvain-la-Neuve
Abstract: 
The paper considers the influence of federal government expenditures and transfers on interregional convergence in gross regional product (GRP) per capita and wages in Russia over 2005?2011. Such an influence is not found. The federal government's policy was reactive and was not focused on decreasing interregional inequality during this period. Wages growth depended more on GRP per capita growth than on federal govern- ment spendings and transfers per capita growth. The dependence between GRP per capita growth and federal government spendings and transfers per capita growth was very weak. Moreover, the paper shows that in this period inequality of Russian regions in GRP per capita and wages was diminishing. In the given period in Russian regions there existed un- conditional beta-convergence, poor regions grew faster than rich ones. This result confirms the prediction of neoclassical theory of regional growth and challenges a new economic geography prediction. Comparing our results to the results of previous research the process of interregional convergence in Russia can be seen. In the 1990s, with the state pressure having been eliminated, the differentiation between Russian regions began, while in the 2000s a natural process of (conditional or unconditional) convergence started.
Subjects: 
convergence
federal expenditures and transfers
wages
Russia
regions
gross regional product
JEL: 
C13
R11
R12
R58
Document Type: 
Conference Paper

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