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Balance between economic and fiscal situation in Russian regions

Author

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  • E.A. Postnikova
  • E.A. Shiltzin

Abstract

The highly abnormal inhomogeneity of Russian economic space has become a reason for experts’ increased attention to the dynamics of moving forces and trends in the differentiation of Russian regions and to the analysis of the key equalizing fiscal transfer tools. Having analyzed GRP per capita over 1996-2004, the author considers interregional differences in the economic development in RF units and states the fact that the differentiation had drastically increased in the 2000s. The growing asymmetry of recent years could be completely explained by the dynamic development in two leading regions alone. No visible changes in differentiation over the rest territory of Russia have been observed. On the contrary, the economic development indicators show a cluster convergence process to be in progress along with the growing differentiation of regional fiscal capacities. This trend can be seen even if the leading regions are excluded from the analysis.

Suggested Citation

  • E.A. Postnikova & E.A. Shiltzin, 2007. "Balance between economic and fiscal situation in Russian regions," Journal "Region: Economics and Sociology", Institute of Economics and Industrial Engineering of Siberian Branch of RAS, vol. 2.
    • Handle: RePEc:nos:regioe:2007-2_3
    Note: Regional Policy and Economic Issues of Federalism
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