Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/29821
Authors: 
Freinkman, Lev
Kholodilin, Konstantin Arkadievich
Thießen, Ulrich
Year of Publication: 
2009
Series/Report no.: 
DIW Discussion Papers 912
Abstract: 
The effects of inter-government fiscal arrangements on variation in regional economic growth are analyzed for Russia, a country with large cross-regional differences and considerable fiscal redistribution. Moreover, fiscal reforms implemented in the first half of 2000s, which followed to some extent scientific advice, make analysis of this case particularly interesting. We observe that post-reform fiscal redistribution became more rational and this resulted in fewer incentive distortions. We found no negative association between federal transfers and regional growth. Furthermore, there are no major differences between donor and recipient regions in the way how inter-governmental fiscal arrangements influence regional growth. Overall, fiscal policy variables have become less important growth determinants than it was the case in the 1990s. Still further reforms in federalism arrangements would be desirable.
Subjects: 
Fiscal equalization
inter-governmental finance reform
Russian regions
extreme bounds analysis
JEL: 
C21
E62
H77
R11
Document Type: 
Working Paper

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