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Direct Transfers between the Former Soviet Union Central Budget and the Republics: Past Evidence and Current Implications

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  • Orlowski, Lucjan T

Abstract

This paper examines the magnitude of direct transfers between the former Soviet Union central budget and individual republics. It shows that Kazakhstan and Central Asian republics were primary recipients of large net transfers of funds from the Soviet central budget amounting in some cases to about ten percent of their GNP. On the contrary, Russia was the single largest net donor of funds to the Soviet central budget through more transfers paid to the union budget than received from it, both in rouble terms and as a share of the GNP. With the dissolution of the central budget in November 1991, these transfers were discontinued. This has caused a dent in fiscal budgets and a large negative income shock in recipient republics. To some extent, external saving is suggested as the way to ease up the burden of the loss of income induced by the collapse of the fiscal system and the system of direct transfers within the former Soviet Union. Copyright 1995 by Kluwer Academic Publishers

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  • Orlowski, Lucjan T, 1995. "Direct Transfers between the Former Soviet Union Central Budget and the Republics: Past Evidence and Current Implications," Economic Change and Restructuring, Springer, vol. 28(1), pages 59-73.
  • Handle: RePEc:kap:ecopln:v:28:y:1995:i:1:p:59-73
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    1. Stanley Fischer, 1992. "Russia and the Soviet Union Then and Now," NBER Working Papers 4077, National Bureau of Economic Research, Inc.
    2. A. Granberg, 1990. "The Economic Mechanism of Inter-Republic and Inter-Regional Relations," Problems of Economic Transition, Taylor & Francis Journals, vol. 33(3), pages 77-93.
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    Cited by:

    1. Orlowski, Lucjan T., 1993. "The disintegration of the ruble zone: Driving forces and proposals for policy change," Kiel Working Papers 585, Kiel Institute for the World Economy (IfW).
    2. Lücke, Matthias, 1993. "Wirtschaftliche Grundlagen des Regionalismus in der Russischen Föderation," Kiel Working Papers 603, Kiel Institute for the World Economy (IfW).
    3. Milanovic, Branko, 1996. "Nations, conglomerates, and empires : the tradeoff between income and sovereignty," Policy Research Working Paper Series 1675, The World Bank.
    4. Langhammer, Rolf J. & Lücke, Matthias, 1995. "Die Handelsbeziehungen der Nachfolgestaaten der Sowjetunion: von der regionalen Desintegration zur weltwirtschaftlichen Integration?," Kiel Discussion Papers 244, Kiel Institute for the World Economy (IfW).
    5. Lücke, Matthias, 1997. "Accession of CIS countries to the World Trade Organisation," Kiel Working Papers 796, Kiel Institute for the World Economy (IfW).
    6. Grogan, Louise, 2013. "Household formation rules, fertility and female labour supply: Evidence from post-communist countries," Journal of Comparative Economics, Elsevier, vol. 41(4), pages 1167-1183.
    7. Lücke, Matthias, 1994. "Beschäftigungsstruktur und realwirtschaftliche Anpassung in der ehemaligen Sowjetunion," Open Access Publications from Kiel Institute for the World Economy 1614, Kiel Institute for the World Economy (IfW).
    8. Langhammer, Rolf J. & Lücke, Matthias, 1995. "Trade among the Post-Soviet states: evolution and policy issues," Kiel Working Papers 708, Kiel Institute for the World Economy (IfW).
    9. Burak Erkut, 2015. "A Super Indebted European Superstate," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 10(2), pages 4-10, December.
    10. Lücke, Matthias, 1994. "Wirtschaftliche Grundlagen des Regionalismus in der Russischen Föderation," Open Access Publications from Kiel Institute for the World Economy 1631, Kiel Institute for the World Economy (IfW).

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