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Regional Convergence in the Russian Federation: Spatial and Temporal Dynamics

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  • Jens K. Perret

    (International School of Management (ISM))

Abstract

Set in the context neoclassical growth theory the discussion of economic convergence is revisited in the context of the Russian Federation. Compared to previous similar studies, here a larger more comprehensive data set is implemented (1994–2013) allowing to check for differences in convergence during different time periods. Using a panel approach more reliable results are achieved. The stability of these results is strengthened by estimating Kernel density to test for the presence of potential groups of regions with different steady states, on the one hand, and Markov transition matrices to test for the temporal stability of the regions on the other. Finally, a quantile regression approach is used to assure overall stability of the convergence speed. All results show that Russia reports absolute convergence up to Vladimir Putin’s second term as president and occurring again during his third term in office and conditional convergence in all time periods. All results remain stable even when including spatial effects or when testing for temporal stability. Quantile regression analysis also reports a more or less stable speed of convergence across the whole time horizon which is significantly higher than comparable results for the US or across regions of the European Union.

Suggested Citation

  • Jens K. Perret, 2019. "Regional Convergence in the Russian Federation: Spatial and Temporal Dynamics," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(1), pages 11-39, March.
    • Handle: RePEc:spr:jqecon:v:17:y:2019:i:1:d:10.1007_s40953-018-0126-7
    DOI: 10.1007/s40953-018-0126-7
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    2. Evguenia Bessonova & Anna Tsvetkova, 2022. "Do Productivity Laggards Ever Catch Up With Leaders?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(S1), pages 71-107, April.

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    More about this item

    Keywords

    Russian Federation; Quantile regression; Regional economics; Economic convergence; Growth dynamics; Panel econometrics; Spatial econometrics; Kernel density estimation;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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