Regional Convergence in Russia: Estimating A Neoclassical Growth Model

Lehmann, Hartmut; Oshchepkov, Aleksey; Silvagni, Maria Giulia

doi:10.2139/ssrn.3627173

Cited by 11 publications

(6 citation statements)

References 52 publications

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“…The study made by Johnson and Papageorgiou (2020) states that in spite of the lack of progress on cross-country convergence, global inequality tended to fall since 2000. Lehmann et al (2020) find a convergence across Russian regions during 1996–2017. Similarly, Aráoz et al (2020) find the presence of β-convergence in the per-capita GDP among the Argentine provinces.…”

Section: Review Of Literaturementioning

confidence: 85%

Regional economic growth in India: convergence or divergence?

Nayak

Sahoo

2021

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Purpose This paper aims to examine the convergence in per-capita income (measured as per-capita net state domestic product) of regions in India during the period 1990–1991 to 2017–2018. Two separate analyses have also been done for the sub-periods, i.e., 1990–1991 to 2003–2004 and 2004–2005 to 2017–2018, to find out the effect of the second phase of economic liberalization in India. Design/methodology/approach In a panel data study, the estimation of absolute and conditional beta (β)-convergence and sigma (σ)-convergence across 17 Indian regions have been done. To measure the dispersion of per-capita income across the regions in India, the standard deviation of logs, Gini coefficient, Mehran measure, Piesch measure, Kakwani measure and Theil index have been estimated. In addition to this, these indices have been regressed over time. Findings This study finds the presence of absolute and conditional β-convergence; the regions with low initial per-capita income have grown faster than the regions with high initial per-capita income. Further, this study finds that foreign direct investment (FDI) inflow and the availability of power enhance growth across regions. However, this study finds the presence of σ-divergence, which indicates that the economic inequality among the regions in India has widened over the periods, calling for policy interventions to promote growth in the backward regions through the promotion of FDI inflow and the availability of power. Originality/value This study highlights the rising economic inequality among the regions in India by analyzing the latest available data through appropriate econometric techniques.

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Section: Review Of Literaturementioning

confidence: 85%

Regional economic growth in India: convergence or divergence?

Nayak

Sahoo

2021

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“…Papers on cross-country convergence usually average output growth over 5-year, 10-year or even longer time periods (Gennaioli et al, 2014;Barro, 2015). Kaneva and Untura (2019), studying convergence between Russian regions, average output growth over a 5-year period, while Perret (2019) and Lehmann et al (2020) use 3-year or 4-year periods.…”

Section: β-Convergencementioning

confidence: 99%

“…Kaneva and Untura (2019), studying convergence between Russian regions, average output growth over a 5‐year period, while Perret (2019) and Lehmann et al . (2020) use 3‐year or 4‐year periods.…”

Section: Productivity Convergencementioning

confidence: 99%

Do Productivity Laggards Ever Catch Up With Leaders?†

Bessonova

Tsvetkova

2021

Review of Income and Wealth

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The paper focuses on trends in the convergence of labor and multifactor productivity in Russia. Using firm-level data for the period 2011-2016, we show that firms with low-productivity grow faster than those with high-productivity. This result is, however, mostly driven by new entrants. The catch-up momentum fades after the first few years of a firm's life, so it is not capable of closing the gap between the most and least productive firms in the Russian economy. We show that the gap widened over the period 2011-2016, suggesting major divergence in productivity levels of Russian firms. We also use stochastic frontier analysis to verify the divergence within narrowly defined industries. Our estimates confirm divergence in most industries.

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“…Durand-Lasserve and Blöchliger (2018) find conditional beta-convergence over 2005-2015. Lehman et al (2020) exploit a modified version of conditional beta-convergence and also find convergence even over a longer period, 1996-2017 -in contrast to the earlier study, Lehmann and Silvagni (2013). Carvelli (2020) considers the period 1994-2015 and discovers that beta-convergence is accompanied by divergence in differences between the regional incomes and their sample average.…”

Section: Introductionmentioning

confidence: 73%

Regional inequality in Russia: Anatomy of convergence

Gluschenko

2021

SSRN Journal

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During the last 15-20 years, inequality between Russian regions in terms of real personal incomes per capita was decreasing. This paper aims at revealing the "anatomy" of this phenomenon. To do so, time series of every regional income per capita is tested for catching-up with the national income per capita. Nonlinear asymptotically subsiding trends model the processes of convergence. The data cover 2002-2018 with a monthly frequency. Real incomes are estimated by adjusting nominal incomes to regional price levels. The results obtained suggest that 54.4% of the Russian regions exhibit convergence, and 20.3% of regions retain (approximately) stable income gap. At the same time, there is a significant proportion of deterministically diverging regions, equaling 22.8%. Random walks are detected in two regions only.

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Regional Convergence in Russia: Estimating A Neoclassical Growth Model

Cited by 11 publications

References 52 publications

Regional economic growth in India: convergence or divergence?

Regional economic growth in India: convergence or divergence?

Do Productivity Laggards Ever Catch Up With Leaders?†

Regional inequality in Russia: Anatomy of convergence

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