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

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  • Kufenko, Vadim
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    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. --

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    Bibliographic Info

    Paper provided by Promotionsschwerpunkt "Globalisierung und Beschaeftigung" in its series Violette Reihe Arbeitspapiere with number 38/2012.

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    Date of creation: 2012
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    Handle: RePEc:zbw:hohpro:382012

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    Keywords: growth regressions; regional analysis; human capital; system GMM; instrumental variables;

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    1. Serge Coulombe & Jean-Fran├žois Tremblay, 2001. "Human capital and regional convergence in Canada," Journal of Economic Studies, Emerald Group Publishing, vol. 28(3), pages 154-180, September.
    2. 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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