Is Russia Still Driving Regional Economic Growth?
42 Pages Posted: 3 Mar 2006
Date Written: September 2005
This paper investigates whether the linkages between economic growth in Russia and growth in other countries in the region have weakened over time, particularly following the 1998 Russian crisis. It specifies an econometric model that includes standard growth determinants as well as Russian economic growth, and which allows for the effects of Russian growth to vary over time. The paper finds that Russian growth was indeed a significant determinant of regional economic growth prior to the Russian crisis, but that this link weakened significantly thereafter.
Keywords: Economic growth, Russia, CIS, Baltics
JEL Classification: F15, F43, O40
Suggested Citation: Suggested Citation