Speed of Reform, Initial Conditions or Political Orientation? Explaining Russian Regions' Economic Performance
Using a panel of 77 Russian regions we investigate the reasons behind large differences in regional growth performance for the period from the start of transition to the 1998 crisis. We consider politico-institutional characteristics, indicators of regional economic reform and initial conditions (including economic, geographical and structural features). Surprisingly, differences in institutional characteristics or economic reform explain relatively little of the observed difference in regional growth performance. For example, we find no evidence that a region's economic performance has been influenced by the political orientation of its leaders, or the political preferences of the population. In contrast, a region's initial industrial structure, as well as its natural and human resource endowments, had a large impact on its economic growth performance during the 1990s. It is important to note that our findings should not be interpreted as saying that reform in transition countries is generally less important than initial conditions, nor that reform in Russia was not or is not needed. Our focus on Russian regions captures only the aspects of reform that have (or have not) been initiated in the regions, and thus does not take into account the large—and arguably more important — part of the changes that have been undertaken at the national level. However, our study shows that regional differences in reform played a minor role in determining the relative economic performance of Russian regions in the 1990s, especially when compared with the impact of the initial conditions in which regions found themselves at the beginning of the transition.
Volume (Year): 17 (2005)
Issue (Month): 3 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/CPCE20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/CPCE20|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Easterly, W & Levine, R, 1996.
"Africa's Growth Tragedy : Policies and Ethnic Divisions,"
536, Harvard - Institute for International Development.
- Easterly, William & Levine, Ross, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1203-50, November.
- Mankiw, N Gregory & Romer, David & Weil, David N, 1992.
"A Contribution to the Empirics of Economic Growth,"
The Quarterly Journal of Economics,
MIT Press, vol. 107(2), pages 407-37, May.
- Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
- Sachs, Jeffrey D & Warner, Andrew M, 1997. "Fundamental," American Economic Review, American Economic Association, vol. 87(2), pages 184-88, May.
- Berkowitz, Daniel & DeJong, David N., 1999.
"Russia's internal border,"
Regional Science and Urban Economics,
Elsevier, vol. 29(5), pages 633-649, September.
- Popov, Vladimir, 2001. "Reform Strategies and Economic Performance of Russia's Regions," World Development, Elsevier, vol. 29(5), pages 865-886, May.
- Berkowitz, Daniel & DeJong, David N., 2003.
"Policy reform and growth in post-Soviet Russia,"
European Economic Review,
Elsevier, vol. 47(2), pages 337-352, April.
- Quah, Danny, 1997. "Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," CEPR Discussion Papers 1586, C.E.P.R. Discussion Papers.
- Ksenia Yudaeva & Konstantin Kozlov & Natalia Melentieva & Natalia Ponomareva, 2003. "Does foreign ownership matter?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(3), pages 383-409, 09.
- Easterly, William, 1999. "The ghost of financing gap: testing the growth model used in the international financial institutions," Journal of Development Economics, Elsevier, vol. 60(2), pages 423-438, December.
- Vladimir Popov, 2000. "Shock Therapy Versus Gradualism: The End Of The Debate (Explaining The Magnitude Of Transformational Recession)," Comparative Economic Studies, Palgrave Macmillan, vol. 42(1), pages 1-57, April.
When requesting a correction, please mention this item's handle: RePEc:taf:pocoec:v:17:y:2005:i:3:p:289-317. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.