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Accounting for Growth in Post-Soviet Russia

  • Daniel Berkowitz
  • David N. DeJong

In pursuit of its transition from a command to a market economy, post-Soviet Russia has witnessed enormous regional differences in economic growth rates. Moreover, the economic reforms implemented under this transition, while initiated at the federal level, have also differed markedly across regions, as regional governments have had considerable discretion over the implementation of reform policies in their jurisdictions. We exploit these differences in analyzing whether regional differences in reform policies can account for regional differences in growth rates, and conclude that to a considerable degree, they can. Most notably, we find that local-government privatization initiatives and regional-government initiatives to gain control over their capital stock (e.g. plants, equipment, machinery and social infrastructure) exhibit close correspondence with the formation of new legal enterprises, which in turn exhibits close correspondence with economic growth.

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Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 127.

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Length: pages
Date of creation: 01 Jan 1998
Date of revision:
Handle: RePEc:wdi:papers:1998-127
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