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Fiscal Decentralization in Rentier Regions: Evidence from Russia


  • Freinkman, Lev
  • Plekhanov, Alexander


Summary The paper argues that governments in regions that rely heavily on intergovernmental transfers and natural resource rents face serious distortions in their incentive structure. As a result, such regions tend to have more fiscally centralized governments than the regional characteristics would suggest. Data on Russian regions in the late 1990s--early 2000s support this hypothesis. Advancing intraregional fiscal decentralization in rentier regions could reduce policy distortions, and make the subnational environment more supportive of economic development.

Suggested Citation

  • Freinkman, Lev & Plekhanov, Alexander, 2009. "Fiscal Decentralization in Rentier Regions: Evidence from Russia," World Development, Elsevier, vol. 37(2), pages 503-512, February.
  • Handle: RePEc:eee:wdevel:v:37:y:2009:i:2:p:503-512

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    References listed on IDEAS

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    Cited by:

    1. repec:eee:rujoec:v:3:y:2017:i:4:p:425-444 is not listed on IDEAS
    2. Alexeev, Michael & Chernyavskiy, Andrey, 2015. "Taxation of natural resources and economic growth in Russia's regions," Economic Systems, Elsevier, vol. 39(2), pages 317-338.
    3. Libman, Alexander, 2010. "Constitutions, regulations, and taxes: Contradictions of different aspects of decentralization," Journal of Comparative Economics, Elsevier, vol. 38(4), pages 395-418, December.
    4. Libman, Alexander, 2013. "Natural resources and sub-national economic performance: Does sub-national democracy matter?," Energy Economics, Elsevier, vol. 37(C), pages 82-99.
    5. Channa, Anila & Faguet, Jean-Paul, 2016. "Decentralization of health and education in developing countries: a quality-adjusted review of the empirical literature," LSE Research Online Documents on Economics 68719, London School of Economics and Political Science, LSE Library.
    6. Alisher Akhmedjonov & Irina N. Il’ina & Carol S. Leonard & Zafar Nazarov & Evgenij E. Plisetskij & Elena S. Vakulenko, 2013. "Russia’s regions: governance and Well-being, 2000-2008," HSE Working papers WP BRP 42/EC/2013, National Research University Higher School of Economics.
    7. Wu, Alfred M. & Wang, Wen, 2013. "Determinants of Expenditure Decentralization: Evidence from China," World Development, Elsevier, vol. 46(C), pages 176-184.
    8. Perez-Sebastian, Fidel & Raveh, Ohad, 2016. "Natural resources, decentralization, and risk sharing: Can resource booms unify nations?," Journal of Development Economics, Elsevier, vol. 121(C), pages 38-55.


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