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The Russian Regional Convergence Process

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  • Konstantin A. Kholodilin
  • Aleksey Oshchepkov
  • Boriss Siliverstovs

Abstract

This paper investigates income convergence among Russian regions between 1998 and 2006. It makes two major contributions to the literature on regional convergence in Russia. First, it identifies spatial regimes using the exploratory spatial data analysis. Second, it examines the impact of spatial effects on the convergence process. Our results show that the overall speed of regional convergence in Russia, being slow by international standards, becomes even slower after controlling for spatial effects. However, when accounting for spatial regimes, we find a strong regional convergence among high-income regions located near other high-income regions. Our results indicate that estimating the speed of convergence using aggregate data may result in misleading conclusions regarding the nature of the convergence process among Russia's regions.

Suggested Citation

  • Konstantin A. Kholodilin & Aleksey Oshchepkov & Boriss Siliverstovs, 2012. "The Russian Regional Convergence Process," Eastern European Economics, Taylor & Francis Journals, vol. 50(3), pages 5-26, May.
  • Handle: RePEc:mes:eaeuec:v:50:y:2012:i:3:p:5-26
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    1. Maria Abreu Henri L. F. de Groot & Raymond J. G. M. Florax, 2005. "A Meta-Analysis of β-Convergence: the Legendary 2%," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 389-420, July.
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    6. Popov, Vladimir, 2001. "Reform Strategies and Economic Performance of Russia's Regions," World Development, Elsevier, vol. 29(5), pages 865-886, May.
    7. Aleksey Oshchepkov, 2007. "Are Interregional Wage Differentials in Russia Compensative?," Discussion Papers of DIW Berlin 750, DIW Berlin, German Institute for Economic Research.
    8. A. Granberg & Yu. Zaitseva., 2002. "Growth Rates within the National Economic Space," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 9.
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    10. Shankar, Raja & Shah, Anwar, 2003. "Bridging the Economic Divide Within Countries: A Scorecard on the Performance of Regional Policies in Reducing Regional Income Disparities," World Development, Elsevier, vol. 31(8), pages 1421-1441, August.
    11. Barro, Robert J & Sala-i-Martin, Xavier, 1992. "Convergence," Journal of Political Economy, University of Chicago Press, vol. 100(2), pages 223-251, April.
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    Cited by:

    1. Baburin, Vyacheslav & Zemtsov, Stepan, 2014. "Diffussion of ICT-products and "five Russias"," MPRA Paper 68926, University Library of Munich, Germany, revised 10 May 2014.
    2. Hagemann, Harald & Kufenko, Vadim, 2014. "The political Kuznets curve for Russia: Income inequality, rent seeking regional elites and empirical determinants of protests during 2011/2012," Violette Reihe: Schriftenreihe des Promotionsschwerpunkts "Globalisierung und Beschäftigung" 39/2013, University of Hohenheim, Carl von Ossietzky University Oldenburg, Evangelisches Studienwerk.
    3. Gluschenko, Konstantin, 2010. "Methodologies of Analyzing Inter-Regional Income Inequality and Their Applications to Russia," MPRA Paper 66824, University Library of Munich, Germany.
    4. repec:eee:juecon:v:104:y:2018:i:c:p:16-34 is not listed on IDEAS
    5. H. Lehmann & M. G. Silvagni, 2013. "Is There Convergence of Russia’s Regions? Exploring the Empirical Evidence: 1995 – 2010," Working Papers wp901, Dipartimento Scienze Economiche, Universita' di Bologna.
    6. Coleman, Stephen, 2010. "The spatial diffusion of social conformity: the case of voting participation," MPRA Paper 23057, University Library of Munich, Germany.
    7. Olga A. Demidova, 2014. "The asymmetric spatial effects for eastern and western regions of Russia," HSE Working papers WP BRP 50/EC/2014, National Research University Higher School of Economics.
    8. Elena Vakulenko, 2016. "Does migration lead to regional convergence in Russia?," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 9(1), pages 1-25.
    9. K.P. Gluschenko (glu@nsu.ru ), 2010. "Income inequality in Russian regions: comparative analysis," Journal "Region: Economics and Sociology", Institute of Economics and Industrial Engineering of Siberian Branch of RAS, vol. 4.
    10. Alexander S. Skorobogatov, 2016. "Spatial Equilibrium Approach to the Analysis of Income Differentials Across Russian Cities," HSE Working papers WP BRP 149/EC/2016, National Research University Higher School of Economics.
    11. Demidova, Olga, 2014. "Spatial-autoregressive model for the two groups of related regions (eastern and western parts of Russia)," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 34(2), pages 19-35.
    12. Vera Ivanova, 2015. "How Space Channels Wage Convergence: The Case of Russian Cities," HSE Working papers WP BRP 120/EC/2015, National Research University Higher School of Economics.
    13. Ravi Sarathy & Elitsa R. Banalieva, 2014. "Economic Development And Marketing Strategies: A Comparative Lens," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 5(1).
    14. Vera Ivanova, 2015. "The well-being of Russian cities: does location matter?," ERSA conference papers ersa15p956, European Regional Science Association.

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