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Inter-regional output distribution: a comparison of Russian and Chinese experience

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  • Thomas Herzfeld

Abstract

Several studies report increasing inter-regional inequality in transition countries over the course of economic reforms, but most of them fail to look at the underlying dynamics. Using the cases of Russia and China, this article analyses the evolution of inter-regional output distribution during economic transition. One non-parametric method, kernel density estimation, and one parametric method, a Markov chain transition matrix, are used to evaluate the shape of the inter-regional output distribution and to evaluate regions' mobility within this distribution. Estimated distributions for both countries are skewed with long right tails. Whereas the distribution for Russian regions shows multiple modes, the hypothesis of unimodality could not be rejected for Chinese regions over the last two decades. Stationary distributions of the Markov chain transition matrices support this finding. It turns out that increasing inequality and multimodality in both countries are driven by a few outliers with very distinct characteristics.

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  • Thomas Herzfeld, 2008. "Inter-regional output distribution: a comparison of Russian and Chinese experience," Post-Communist Economies, Taylor & Francis Journals, vol. 20(4), pages 431-447.
    • Handle: RePEc:taf:pocoec:v:20:y:2008:i:4:p:431-447
    DOI: 10.1080/14631370802444658
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    References listed on IDEAS

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    1. Ms. Irina Dolinskaya & Ms. Irina Tytell, 2002. "Transition and Regional Inequality in Russia: Reorganization or Procrastination?," IMF Working Papers 2002/169, International Monetary Fund.
    2. Spilimbergo, Antonio & Kwon, Goohoon, 2005. "Russia's Regions: Income Volatility, Labour Mobility and Fiscal Policy," CEPR Discussion Papers 5265, C.E.P.R. Discussion Papers.
    3. Olivier Blanchard & Andrei Shleifer, 2001. "Federalism With and Without Political Centralization: China Versus Russia," IMF Staff Papers, Palgrave Macmillan, vol. 48(4), pages 1-8.
    4. Ruslan Yemtsov, 2003. "Quo Vadis? Inequality and Poverty Dynamics across Russian Regions," WIDER Working Paper Series DP2003-67, World Institute for Development Economic Research (UNU-WIDER).
    5. Esfandiar Maasoumi & Le Wang, 2008. "Economic Reform, Growth and Convergence in China," Econometrics Journal, Royal Economic Society, vol. 11(1), pages 128-154, March.
    6. Phyllis Dininio & Robert W. Orttung, 2004. "Explaining Patterns of Corruption in the Russian Regions," William Davidson Institute Working Papers Series 727, William Davidson Institute at the University of Michigan.
    7. repec:zbw:bofitp:2003_009 is not listed on IDEAS
    8. Ms. Irina Dolinskaya & Ms. Irina Tytell, 2001. "Explaining Russia's Output Collapse: Aggregate Sources and Regional Evidence," IMF Working Papers 2001/016, International Monetary Fund.
    9. Patricio Aroca & Dong Guo & Geoffrey J. D. Hewings, 2006. "Spatial Convergence in China: 1952-99," WIDER Working Paper Series RP2006-89, World Institute for Development Economic Research (UNU-WIDER).
    10. Laura Solanko, 2003. "An empirical note on growth and convergence across Russian regions," Macroeconomics 0308005, University Library of Munich, Germany.
    11. Bode, Eckhardt, 1998. "Lokale Wissensdiffusion und regionale Divergenz in Deutschland," Open Access Publications from Kiel Institute for the World Economy 1038, Kiel Institute for the World Economy (IfW Kiel).
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    Cited by:

    1. Alexander S. Skorobogatov, 2016. "Spatial Equilibrium Approach to the Analysis of Income Differentials Across Russian Cities," HSE Working papers WP BRP 149/EC/2016, National Research University Higher School of Economics.
    2. K.P. Glushchenko (glu@ieie.nsc.ru), 2010. "Methodologies of analyzing inter-regional income inequalities," Journal "Region: Economics and Sociology", Institute of Economics and Industrial Engineering of Siberian Branch of RAS, vol. 1.
    3. Skorobogatov, Alexander S., 2018. "Why do newer cities promise higher wages in Russia?," Journal of Urban Economics, Elsevier, vol. 104(C), pages 16-34.
    4. Cheong, Tsun Se & Wu, Yanrui, 2018. "Convergence and transitional dynamics of China's industrial output: A county-level study using a new framework of distribution dynamics analysis," China Economic Review, Elsevier, vol. 48(C), pages 125-138.
    5. Sergei Guriev & Elena Vakulenko, 2012. "Convergence between Russian regions," Working Papers w0180, New Economic School (NES).

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