The Russian Regional Convergence Process: Where Does It Go?

KOF Working Paper No. 216

31 Pages Posted: 1 May 2009 Last revised: 23 Dec 2011

See all articles by Konstantin A. Kholodilin

Konstantin A. Kholodilin

German Institute for Economic Research (DIW Berlin)

Aleksey Y. Oshchepkov

National Research University Higher School of Economics

Boriss Siliverstovs

German Institute for Economic Research (DIW Berlin) - Department of International Economics

Date Written: February 9, 2009

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.

Keywords: Regional convergence, spatial regimes, spatial effects

JEL Classification: C21, O47, R12

Suggested Citation

Kholodilin, Konstantin A. and Oshchepkov, Aleksey Y. and Siliverstovs, Boriss, The Russian Regional Convergence Process: Where Does It Go? (February 9, 2009). KOF Working Paper No. 216, Available at SSRN: https://ssrn.com/abstract=1362355 or http://dx.doi.org/10.2139/ssrn.1362355

Konstantin A. Kholodilin (Contact Author)

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstra├če 58
Berlin, 10117
Germany

Aleksey Y. Oshchepkov

National Research University Higher School of Economics ( email )

Myasnitskaya, 20
Moscow, 101000
Russia

Boriss Siliverstovs

German Institute for Economic Research (DIW Berlin) - Department of International Economics ( email )

Mohrenstra├če 58
Berlin, 10117
Germany

HOME PAGE: http://www.diw.de/programme/jsp/MA.jsp?language=en&uid=bsiliverstovs

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