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Financial decentralization and economic growth in regions of the Russian Federation

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  • A.V.Belov

Abstract

Our analysis of the statistical data over 2000-2005 shows positive correlation between centralization of fiscal expenditures and GDP dynamics in most units of the Russian Federation. Nevertheless, not any increase in federal subsidies stimulates an economic growth because, among others factors, regional fiscal investments rather than centralized ones influence more positively on a speed of a regional growth. To increase the part of federal fiscal money transferred to conditional investment projects in regions could be considered an optimal strategy of intergovernmental relations from the point of view of higher economic growth rates.

Suggested Citation

  • A.V.Belov, 2008. "Financial decentralization and economic growth in regions of the Russian Federation," Journal "Region: Economics and Sociology", Institute of Economics and Industrial Engineering of Siberian Branch of RAS, vol. 1.
    • Handle: RePEc:nos:regioe:2008-1_3
    Note: Regional Policy and Economic Issues of Federalism
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    Cited by:

    1. Boris I. Alekhin, 2020. "Vertical Fiscal Imbalance and Regional Economic Growth," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 6, pages 39-53, December.

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