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Accounting for Growth in Post-Soviet Russia

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Author Info
Daniel Berkowitz and David N. DeJong
Daniel Berkowitz and David N. DeJong

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Abstract

In pursuit of its transition from a command to a market economy, post-Soviet Russia has witnessed enormous regional differences in economic growth rates. Moreover, the economic reforms implemented under this transition, while initiated at the federal level, have also differed markedly across regions, as regional governments have had considerable discretion over the implementation of reform policies in their jurisdictions. We exploit these differences in analyzing whether regional differences in reform policies can account for regional differences in growth rates, and conclude that to a considerable degree, they can. Most notably, we find that local-government privatization initiatives and regional-government initiatives to gain control over their capital stock (e.g. plants, equipment, machinery and social infrastructure) exhibit close correspondence with the formation of new legal enterprises, which in turn exhibits close correspondence with economic growth.

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Paper provided by William Davidson Institute at the University of Michigan Stephen M. Ross Business School in its series William Davidson Institute Working Papers Series with number 256.

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Date of creation: 01 Nov 1999
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Handle: RePEc:wdi:papers:1999-256

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Related research
Keywords: optimal taxation; tax evasion; organized crime;

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Find related papers by JEL classification:
H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Johnson, Simon & Kaufmann, Daniel & Zoido-Lobaton, Pablo, 1998. "Regulatory Discretion and the Unofficial Economy," American Economic Review, American Economic Association, vol. 88(2), pages 387-92, May. [Downloadable!] (restricted)
  2. Berkowitz, Daniel & Li, Wei, 2000. "Tax rights in transition economies: a tragedy of the commons?," Journal of Public Economics, Elsevier, vol. 76(3), pages 369-397, June. [Downloadable!] (restricted)
  3. Michael Keen, 1997. "Vertical Tax Externalities in the Theory of Fiscal Federalism," IMF Working Papers 97/173, International Monetary Fund.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Daniel Tarka, 2004. "High-growth Micro Enterprises:managing the risk aspects of enterprise growth," Microeconomics 0403004, EconWPA. [Downloadable!]
  2. Ksenia Yudaeva, 2002. "Globalization and Inequality in CIS Countries: Role of Institutions," Working Papers w0025, Center for Economic and Financial Research (CEFIR). [Downloadable!]
  3. Kokovin Sergey, 2000. "Investment-Curve Model of Tax Optimization and Tax Competition," EERC Working Paper Series 98-242e, EERC Research Network, Russia and CIS. [Downloadable!]
  4. Sonin, Konstantin, 1999. "Inequality, Property Rights Protection, and Economic Growth in Transition Economies: Theory and Russian Evidence," CEPR Discussion Papers 2300, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  5. Nauro F. Campos & Fabrizio Coricelli, 2002. "Growth in Transition: What We Know, What We Don't, and What We Should," William Davidson Institute Working Papers Series 470, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
    Other versions:
  6. Artelaris, Panagiotis & Arvanitidis, Paschalis & Petrakos, George, 2006. "Theoretical and Methodological Study on Dynamic Growth Regions and Factors Explaining their Growth Performance," Papers DYNREG02, Economic and Social Research Institute (ESRI). [Downloadable!]
  7. Simon Johnson & John McMillan & Christopher Woodruff, 2002. "Property Rights and Finance," NBER Working Papers 8852, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  8. Konstantin Sonin, 2003. "Why the Rich May Favor Poor Protection of Property Rights," Working Papers w0022, Center for Economic and Financial Research (CEFIR). [Downloadable!]
    Other versions:
  9. Kolomak Evgeniya, 2000. "Sub-Federal Tax Exemptions in Russia: Less Taxes, More Investment?," EERC Working Paper Series 2k-07e, EERC Research Network, Russia and CIS. [Downloadable!]
  10. Constantin Sonin, 2000. "Private Protection of Property Rights, Inequality, and Economic Growth in Transition Economies," Econometric Society World Congress 2000 Contributed Papers 1300, Econometric Society. [Downloadable!]
  11. Basareva Vera, 2002. "Institutional Peculiarities of Small Business in Russia's Regions," EERC Working Paper Series 02-02e, EERC Research Network, Russia and CIS. [Downloadable!]
  12. Solanko, Laura, 2000. "A Tale of Two City-States; Novgorod and Pskov in the 1990s," BOFIT Discussion Papers 14/2000, Bank of Finland, Institute for Economies in Transition. [Downloadable!]
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