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The Russian Regional Convergence Process: Where Does It Go?

Author

Listed:
  • Konstantin A. Kholodilin
  • Aleksey Oshchepkov
  • Boriss Siliverstovs

Abstract

This paper investigates the income convergence among Russian regions in the period 1998-2006. It makes two major contributions to rather extensive literature on the 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 low by international standards, becomes even lower after controlling for spatial effects. However, when accounting for the spatial regimes, we find a strong regional convergence among high-income regions located near other high-income regions. Our results indicate that estimation of speed of convergence using aggregate data may result in misleading conclusions regarding the nature of convergence process among Russia's regions.

Suggested Citation

  • Konstantin A. Kholodilin & Aleksey Oshchepkov & Boriss Siliverstovs, 2009. "The Russian Regional Convergence Process: Where Does It Go?," Discussion Papers of DIW Berlin 861, DIW Berlin, German Institute for Economic Research.
  • Handle: RePEc:diw:diwwpp:dp861
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    File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.95019.de/dp861.pdf
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    Citations

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    Cited by:

    1. Coleman, Stephen, 2010. "The spatial diffusion of social conformity: the case of voting participation," MPRA Paper 23057, University Library of Munich, Germany.
    2. 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.
    3. 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.
    4. Sergei Guriev & Elena Vakulenko, 2012. "Convergence between Russian regions," Working Papers w0180, Center for Economic and Financial Research (CEFIR).
    5. Lev Freinkman & Konstantin A. Kholodilin & Ulrich Thießen, 2009. "Incentive Effects of Fiscal Equalization: Has Russian Style Improved?," Discussion Papers of DIW Berlin 912, DIW Berlin, German Institute for Economic Research.

    More about this item

    Keywords

    Regional convergence; d-convergence; ß-convergence; spatial regimes; spatial effects;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect 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
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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