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Empirical analysis of regional economic performance in Russia: Human capital perspective

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  • Kufenko, Vadim

Abstract

Having shown the important role of the Russian economy in the ex-USSR region by causality tests, we proceed to empirical analysis of growth and performance of the Russian regions. A dynamic panel data approach enabled us to obtain elasticity coefficients on proxies for convergence, physical capital, labour and innovation. After including human capital in the reformulated model we resolve endogeneity and reverse causality by introducing two instrumental variable approaches. Taking advantage of the Unified State Exam data we managed to successfully endogenize human capital by number (and share) of outperforming students and by the education index. The second approach helped to improve causality between instruments and human capital: the dates of first university foundation and distance to Moscow successfully explains human capital variations due to historical and spatial characteristics of a given region.

Suggested Citation

  • Kufenko, Vadim, 2012. "Empirical analysis of regional economic performance in Russia: Human capital perspective," Violette Reihe: Schriftenreihe des Promotionsschwerpunkts "Globalisierung und Beschäftigung" 38/2012, University of Hohenheim, Carl von Ossietzky University Oldenburg, Evangelisches Studienwerk.
    • Handle: RePEc:zbw:hohpro:382012
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    1. Philippe Aghion & Peter Howitt, 2009. "The Economics of Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012634, December.
    2. A.V.Koritzky, 2007. "Human capital: assessing its impact on incomes of the population in Russian regions," Journal "Region: Economics and Sociology", Institute of Economics and Industrial Engineering of Siberian Branch of RAS, vol. 4.
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    5. A.V.Koritzky, 2007. "Human capital: assessing its impact on incomes of the population in Russian regions," Journal "Region: Economics and Sociology", Institute of Economics and Industrial Engineering of Siberian Branch of RAS, vol. 5.
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    11. Spahn, Heinz-Peter, 1998. "Heterogeneous labour, the unemployment equilibrium, and the natural rate," Violette Reihe: Schriftenreihe des Promotionsschwerpunkts "Globalisierung und Beschäftigung" 2/1998, University of Hohenheim, Carl von Ossietzky University Oldenburg, Evangelisches Studienwerk.
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    14. Catarina Cardoso & Eric J. Pentecost, 2011. "Regional Growth and Convergence: The Role of Human Capital in the Portuguese Regions," Discussion Paper Series 2011_03, Department of Economics, Loughborough University, revised Sep 2011.
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    Cited by:

    1. Hagemann, Harald & Kufenko, Vadim, 2014. "The political Kuznets curve for Russia: Income inequality, rent seeking regional elites and empirical determinants of protests during 2011/2012," Violette Reihe: Schriftenreihe des Promotionsschwerpunkts "Globalisierung und Beschäftigung" 39/2013, University of Hohenheim, Carl von Ossietzky University Oldenburg, Evangelisches Studienwerk.

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    More about this item

    Keywords

    growth regressions; regional analysis; human capital; system GMM; instrumental variables;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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