The Russian Regional Convergence Process: Where is It Leading?

Eastern European Economics, Vol. 50, No. 3, 5-26, 2012

Posted: 5 Nov 2012

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: November 4, 2012

Abstract

This paper investigates income convergence among Russian regions between 1998 and 2006. It makes two major contributions to the literature on regional convergence in Russia. First, it identifies spatial regimes using the exploratory spatial data analysis. Second, it examines the impact of spatial effects the convergence process. Our results show that the overall speed of regional convergence in Russia, being low by international standards, becomes even slower after controlling for spatial effects. However, when accounting for spatial regimes, we find a strong regional convergence among high-income regions located near other high-income regions. Our results indicate that estimating the speed of convergence using aggregate data may result in misleading conclusions regarding the nature of the convergence process among Russia's regions.

Keywords: regional convergence, spatial regimes, spatial effects

JEL Classification: C21, 047, R12

Suggested Citation

Kholodilin, Konstantin A. and Oshchepkov, Aleksey Y. and Siliverstovs, Boriss, The Russian Regional Convergence Process: Where is It Leading? (November 4, 2012). Eastern European Economics, Vol. 50, No. 3, 5-26, 2012. Available at SSRN: https://ssrn.com/abstract=2171048

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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