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Are Intergovernmental Grants Tactical? The Evidence from Russia

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  • Elena Jarocinska

Abstract

Two hypotheses about the determinants of Russian intergovernmental grants are tested empirically. According to first hypothesis, federal transfers to regions correlate with recent voting behavior of regional electorates. Second hypothesis states that transfers are higher in regions with politically powerful governors. We find a strong confirmation for the first hypothesis and no evidence for the second for years 1995-1998. This result is robust across specifications. Panel data analysis allows us to control for regional fixed effects. However, in years 1999-2001 election variables show no effect on transfers. It appears that in the nineties transfers were used by the incumbent government to enhance its reelection probabilities, while by the end of the century this mechanism was no longer in use as the transfer system has become more transparent and objective.

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Bibliographic Info

Paper provided by CASE-Center for Social and Economic Research in its series CASE Network Studies and Analyses with number 0361.

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Length: 27 Pages
Date of creation: 2008
Date of revision:
Handle: RePEc:sec:cnstan:0361

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Keywords: Redistributive politics; intergovernmental grants; Russia;

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Cited by:
  1. Libman, Alexander, 2010. "Constitutions, regulations, and taxes: Contradictions of different aspects of decentralization," Frankfurt School - Working Paper Series 138, Frankfurt School of Finance and Management.
  2. Libman, Alexander, 2008. "Endogenous (De)Centralization and the Russian Federalism," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 9(1), pages 23-57.
  3. Jan Fidrmuc & Jarko Fidrmuc & Shuo Huang, 2013. "Whither China? Reform and Economic Integration among Chinese Regions," CEDI Discussion Paper Series 13-01, Centre for Economic Development and Institutions(CEDI), Brunel University.
  4. Libman, Alexander, 2008. "Federalism and regionalism in transition countries: A survey," MPRA Paper 29196, University Library of Munich, Germany.
  5. Israel Marques & Eugenia Nazrullaeva & Andrei Yakovlev, 2011. "From Competition to Dominance: Political Determinations of Federal Transfers in Russian Federation," HSE Working papers WP BRP 12/EC/2011, National Research University Higher School of Economics.
  6. Guenther G. Schulze & Bambang Suharnoko Sjahrir & Nikita Zakharov, 2013. "Corruption in Russia," Discussion Paper Series 22, Department of International Economic Policy, University of Freiburg, revised Apr 2013.
  7. Libman, Alexander, 2010. "Words or deeds - what matters? Experience of recentralization in Russian security agencies," Frankfurt School - Working Paper Series 148, Frankfurt School of Finance and Management.

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