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Regional volatility in emerging countries The case of Russia1

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  • Goohoon Kwon
  • Antonio Spilimbergo

Abstract

An uneven distribution of natural resources and the Soviet legacy of artificial regional specialization expose Russia's regions to large income shocks. Using an unique regional dataset covering Russian regions between 1992 and 2003, we assess how these features influence the magnitude and persistence of regional income shocks. We propose a novel measure of regional exogenous shocks that we use to show that fiscal policy in Russia's regions has largely been pro‐cyclical, exacerbating rather than moderating regional exogenous shocks.

Suggested Citation

  • Goohoon Kwon & Antonio Spilimbergo, 2009. "Regional volatility in emerging countries The case of Russia1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 17(1), pages 97-119, January.
    • Handle: RePEc:bla:etrans:v:17:y:2009:i:1:p:97-119
    DOI: 10.1111/j.1468-0351.2009.00342.x
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    Cited by:

    1. Alfonso Mendoza‐Velázquez & Mónica Rubio‐García & Luis D. Conde‐Cortés, 2022. "Fiscal decentralization and regional economic growth: Evidence from Mexico since the 2000s," Public Budgeting & Finance, Wiley Blackwell, vol. 42(1), pages 45-65, March.
    2. Elena Batunova & Giovanni Perucca, 2020. "Population shrinkage and economic growth in Russian regions 1998–2012," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(4), pages 595-609, August.
    3. Konstantin Gluschenko, 2010. "Methodologies of Analyzing Inter-Regional Income Inequality and Their Applications to Russia," William Davidson Institute Working Papers Series wp984, William Davidson Institute at the University of Michigan.
    4. Markus Eller & Jarko Fidrmuc & Zuzana Fungáčová, 2016. "Fiscal Policy and Regional Output Volatility: Evidence from Russia," Regional Studies, Taylor & Francis Journals, vol. 50(11), pages 1849-1862, November.

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