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New evidence of regional income divergence in post-reform Russia

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  • Alisher Akhmedjonov
  • Marco Chi Keung Lau
  • Berna Balcı İzgi

Abstract

This article investigates regional income convergence in Russia during 2000--2008. We test the hypothesis in which income divergence across regions of the country should give place to income convergence as the country moves toward free market economy with strong market institutions. The study contributes to the existing literature by using the exponential smooth autoregressive Augmented Dickey--Fuller (ADF) unit root test in a panel setup, a novel econometric technique, which encompasses cross sectional dependence. Results show strong evidence of on-going regional income divergence in post-reform period.

Suggested Citation

  • Alisher Akhmedjonov & Marco Chi Keung Lau & Berna Balcı İzgi, 2013. "New evidence of regional income divergence in post-reform Russia," Applied Economics, Taylor & Francis Journals, vol. 45(18), pages 2675-2682, June.
    • Handle: RePEc:taf:applec:v:45:y:2013:i:18:p:2675-2682
    DOI: 10.1080/00036846.2012.665600
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    1. Mario Cerrato & Christian De Peretti & Nick Sarantis, 2007. "A nonlinear panel unit root test under cross section dependence," Documents de recherche 07-12, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
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    4. Ms. Irina Dolinskaya & Ms. Irina Tytell, 2002. "Transition and Regional Inequality in Russia: Reorganization or Procrastination?," IMF Working Papers 2002/169, International Monetary Fund.
    5. Urmas Varblane & Priit Vahter, 2005. "An Analysis Of The Economic Convergence Process In The Transition Countries," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 37, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    6. Ville Kaitila, 2004. "Convergence of real GDP per capita in the EU15. How do the Accession Countries fit in?," Economics Working Papers 025, European Network of Economic Policy Research Institutes.
    7. Wagner, Martin & Hlouskova, Jaroslava, 2001. "The CEEC10's Real Convergence Prospects," Transition Economics Series 20, Institute for Advanced Studies.
    8. Laura Solanko, 2003. "An empirical note on growth and convergence across Russian regions," Macroeconomics 0308005, University Library of Munich, Germany.
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    Cited by:

    1. Charles Shaaba Saba & Nicholas Ngepah & Christian Nsiah, 2020. "Convergence in military expenditure and economic growth in Africa and its regional economic communities: evidence from a club clustering algorithm," Cogent Economics & Finance, Taylor & Francis Journals, vol. 8(1), pages 1832344-183, January.
    2. Alisher Akhmedjonov & Irina N. Il’ina & Carol S. Leonard & Zafar Nazarov & Evgenij E. Plisetskij & Elena S. Vakulenko, 2013. "Russia’s regions: governance and Well-being, 2000-2008," HSE Working papers WP BRP 42/EC/2013, National Research University Higher School of Economics.
    3. Irina Ilina & Carol Scott Leonard & Evgenij Pliseckij, 2014. "Modern trends and risks in the development of resource regions of Russia," ERSA conference papers ersa14p1111, European Regional Science Association.
    4. H. Lehmann & M. G. Silvagni, 2013. "Is There Convergence of Russia s Regions? Exploring the Empirical Evidence: 1995 2010," Working Papers wp901, Dipartimento Scienze Economiche, Universita' di Bologna.
    5. K. P. Gluschenko, 2023. "Regional Inequality in Russia: Anatomy of Convergence," Regional Research of Russia, Springer, vol. 13(1), pages 1-12, December.
    6. Sergei Guriev & Elena Vakulenko, 2012. "Convergence between Russian regions," Working Papers w0180, Center for Economic and Financial Research (CEFIR).
    7. Hansjörg Blöchliger & Olivier Durand-Lasserve, 2018. "The drivers of regional growth in Russia: A baseline model with applications," OECD Economics Department Working Papers 1523, OECD Publishing.
    8. Sergey Timonin & Inna Danilova & Evgeny Andreev & Vladimir M. Shkolnikov, 2017. "Recent Mortality Trend Reversal in Russia: Are Regions Following the Same Tempo?," European Journal of Population, Springer;European Association for Population Studies, vol. 33(5), pages 733-763, December.
    9. Olga Demidova & Pierluigi Daddi & Ekaterina Medvedeva & Marcello Signorelli, 2018. "Modeling the Employment Rate in Russia: a Spatial-Econometric Approach," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 1383-1398.
    10. Batten, Jonathan A. & Brzeszczynski, Janusz & Ciner, Cetin & Lau, Marco C.K. & Lucey, Brian & Yarovaya, Larisa, 2019. "Price and volatility spillovers across the international steam coal market," Energy Economics, Elsevier, vol. 77(C), pages 119-138.
    11. E. Taymaz, 2022. "Regional Convergence or Polarization: The Case of the Russian Federation," Regional Research of Russia, Springer, vol. 12(4), pages 469-482, December.
    12. Oshchepkov, Aleksey & Lehmann, Hartmut & Silvagni, Maria Giulia, 2023. "Regional convergence in Russia: Estimating an augmented Solow model," Economic Systems, Elsevier, vol. 47(4).

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