Transition and Regional Inequality in Russia: Reorganization or Procrastination?

IMF Working Paper No. 02/169

32 Pages Posted: 20 Dec 2002

See all articles by Irina Dolinskaya

Irina Dolinskaya

International Monetary Fund (IMF)

Date Written: October 1, 2002

Abstract

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.

Keywords: growth, transition, inequality

JEL Classification: O4, P2, R1

Suggested Citation

Dolinskaya, Irina, Transition and Regional Inequality in Russia: Reorganization or Procrastination? (October 1, 2002). IMF Working Paper No. 02/169, Available at SSRN: https://ssrn.com/abstract=353401

Irina Dolinskaya (Contact Author)

International Monetary Fund (IMF) ( email )

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