Growth in Russia’s Federal Districts, 1994-2003
Post-Communist Economies, Vol. 22, No. 1, pp. 19-31, 2010
Posted: 12 May 2011 Last revised: 10 May 2015
Date Written: May 11, 2010
Russian macroeconomic growth in the transition era is analysed across federal districts using a neoclassical production function often found in studies of Soviet-era economic growth. An adjusted capital stock series for Russian regions is created and used in the aggregate production function for 1995-2003 to analyse growth across the 11 federal districts in Russia. Federal district output growth is found to be explained well by neoclassical growth theory, indicating that poorer regions may converge to richer regions, thereby strengthening the Russian Federation. Federal districts also have high capital/labour ratios, suggesting that expanded regional domestic and foreign investment across Russia in the future will enhance growth.
Keywords: federal districts, russia, economic growth
JEL Classification: O47, O18, P25
Suggested Citation: Suggested Citation