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Transition and Regional Inequality in Russia; Reorganization or Procrastination?


  • Irina Dolinskaya
  • Irina Tytell


This paper analyzes the evolution of interregional income inequality during transition in Russia. The transition matrix approach reveals that between 1991 and 1997 income mobility tended toward a highly uneven long-term distribution with the majority of regions at low income levels and a minority of higher-income regions, in sharp contrast to pretransition times. The ordered logit analysis suggests that the more successful regions prospered on account of their natural resources, while continuing to resist economic reorganization by supporting traditional enterprises. The less-successful regions appeared trapped at low income levels due to uncompetitive industries and lack of resources needed for restructuring.

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  • Irina Dolinskaya & Irina Tytell, 2002. "Transition and Regional Inequality in Russia; Reorganization or Procrastination?," IMF Working Papers 02/169, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:02/169

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    References listed on IDEAS

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    6. Michael P. Keane & Eswar S. Prasad, 2002. "Inequality, Transfers, And Growth: New Evidence From The Economic Transition In Poland," The Review of Economics and Statistics, MIT Press, vol. 84(2), pages 324-341, May.
    7. Philippe Aghion & Simon Commander, 1999. "On the dynamics of inequality in the transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(2), pages 275-298, July.
    8. Banerjee, Abhijit V & Duflo, Esther, 2003. "Inequality and Growth: What Can the Data Say?," Journal of Economic Growth, Springer, vol. 8(3), pages 267-299, September.
    9. Freinkman, Lev & Yossifov, Plamen, 1999. "Decentralization in regional fiscal systems in Russia - trends and links to economic performance," Policy Research Working Paper Series 2100, The World Bank.
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    12. Kremer, Michael & Onatski, Alexei & Stock, James, 2001. "Searching for prosperity," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 55(1), pages 275-303, December.
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    Cited by:

    1. Gluschenko, Konstantin, 2010. "Methodologies of Analyzing Inter-Regional Income Inequality and Their Applications to Russia," MPRA Paper 66824, University Library of Munich, Germany.
    2. Radwan Shaban & Hiromi Asoaka & Bob Barnes & Vladimir Drebentsov & John Langenbrunner & Sajaia Zurab & James Stevens & David Tarr & Emil Tesliuc & Olga Shabalina & Ruslan Yemtsov, 2006. "Reducing Poverty through Growth and Social Policy Reform in Russia," World Bank Publications, The World Bank, number 6955, June.
    3. 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.
    4. Solanko, Laura, 2003. "An empirical note on growth and convergence across Russian regions," BOFIT Discussion Papers 9/2003, Bank of Finland, Institute for Economies in Transition.
    5. Ickes, Barry W. & Ofer, Gur, 2006. "The political economy of structural change in Russia," European Journal of Political Economy, Elsevier, vol. 22(2), pages 409-434, June.
    6. K.P. Gluschenko ( ), 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.
    7. 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.
    8. Yemtsov, Ruslan, 2003. "Quo Vadis? Inequality and Poverty Dynamics across Russian Regions," WIDER Working Paper Series 067, World Institute for Development Economic Research (UNU-WIDER).
    9. Anna Bufetova, 2016. "Trends toward the concentration of economic activity and uneven spatial development of Russia," ERSA conference papers ersa16p104, European Regional Science Association.


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