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Economic Development, Geography, and Trade: Evidence from Russian Regions, 2000-2012

Author

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  • Kazuhiro Kumo
  • Irina Korgun

Abstract

This paper deals with the problem of economic growth and spatialdevelopment in Russia. It follows a theoretical framework of economic geography interms of factors of the first and the second nature. According to economic geography,natural resource endowment, transportation costs, distance to markets and populationdistribution among other factors produce strong influence on economic performanceof countries and regions. Using data for Russian regions, we test the effect of thesefactors on the level of economic development in Russian regions during 2000-2012,when they achieved high rates of growth. Our results support earlier theoretical andempirical findings in several aspects. First, we observe a positive effect of trade oneconomic growth in Russian regions during the period under review. Second, the firstnature factors included as a distance to two main trading partners, Berlin and Beijing,were significant determinants of improvements in the levels of economic developmentacross Russian regions. This work differs from others by the fact that we control fornatural resource endowment in order to minimize the resource rent effect on regionaleconomic growth in Russia.

Suggested Citation

  • Kazuhiro Kumo & Irina Korgun, 2015. "Economic Development, Geography, and Trade: Evidence from Russian Regions, 2000-2012," Journal Global Policy and Governance, Transition Academia Press, vol. 4(2), pages 69-87.
  • Handle: RePEc:ase:jgpgta:v:4:y:2015:i:2:p:69-87:id:88
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