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Economic Growth and its Effect on Poverty Reduction in Russia

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  • Yuka Takeda

Abstract

This study discusses whether Russia fs economic growth following the 1998 financial crisis is pro-poor. Using Russia fs regional data pertaining to 1995-2002, we estimate the elasticity of poverty to real per capita GRP (gross regional product). The analysis reveals that the elasticity of poverty to growth after the crisis substantially falls at both the national and regional levels. Our results also suggest that inequality increases between and within the richer and poorer regions. We conclude that it is quite necessary to formulate pro-poor policies rather than growth-enhancing ones, in order to alleviate poverty in Russia.

Suggested Citation

  • Yuka Takeda, 2009. "Economic Growth and its Effect on Poverty Reduction in Russia," Global COE Hi-Stat Discussion Paper Series gd08-075, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hst:ghsdps:gd08-075
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    File URL: http://gcoe.ier.hit-u.ac.jp/research/discussion/2008/pdf/gd09-075.pdf
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    Cited by:

    1. Wannaphong Durongkaveroj and Rossarin Osathanunkul & Rossarin Osathanunkul, 2013. "Regional multipliers of social accounting matrix and the effective eradication of poverty," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 2(4), pages 39-52, December.
    2. durongkaveroj, wannaphong, 2014. "Growth or development: experience from Latin America," MPRA Paper 54481, University Library of Munich, Germany, revised 16 Mar 2014.
    3. durongkaveroj, wannaphong, 2014. "SAM Multiplier and its Application to Total Poverty Gap," MPRA Paper 53988, University Library of Munich, Germany.

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