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Before the isolation: Russian regional β-convergence 2001–2019 before the pandemic and Ukrainian war

Author

Listed:
  • Vicente German-Soto

    (Universidad Autónoma de Coahuila, Unidad Camporredondo, Edificio “E”, Planta Baja)

  • Gregory Brock

    (Parker College of Business, Georgia Southern University)

Abstract

Using a general method of moments (GMM) aggregate production function adjusted for spatial autocorrelation, Russian regions 2001–2019 are found to exhibit no β convergence/divergence before 2009, 1% convergence 2009–2014 and then none again 2015–2019. Both human and physical capital contribute to aggregate growth as neoclassical theory predicts. Spatial autocorrelation suggests the measurement of spatial regional interdependence in Russia is more complex than in the U.S., EU or Mexico with the standard use of adjacent borders or railroad distances data not capturing regional interdependency. At the beginning of 2020, Russia’s regions had not transitioned to intensive instead of extensive growth making regional growth stagnation and no further convergence likely in the decade to come.

Suggested Citation

  • Vicente German-Soto & Gregory Brock, 2023. "Before the isolation: Russian regional β-convergence 2001–2019 before the pandemic and Ukrainian war," Economic Change and Restructuring, Springer, vol. 56(4), pages 2729-2746, August.
    • Handle: RePEc:kap:ecopln:v:56:y:2023:i:4:d:10.1007_s10644-023-09531-7
    DOI: 10.1007/s10644-023-09531-7
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    More about this item

    Keywords

    Russian regions; Human capital; Convergence;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • 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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