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Regional Disparities and Transfer Policies in Russia: Theory and Evidence

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  • Ms. Era Dabla-Norris
  • Mr. Shlomo Weber

Abstract

In this paper we examine economic disparities across regions in Russia and offer a theoretical treatment of various transfer rules between different regions. We analyze the principle of partial equalization, which implies that the more depressed regions should be subsidized by the more advantaged regions, but, the burden on more prosperous regions should not be excessive. Although, contrary to the partial equalization principle, the gaps between the richer and poorer regions have widened since the transition, there are some signs that this trend could be reversed.

Suggested Citation

  • Ms. Era Dabla-Norris & Mr. Shlomo Weber, 2001. "Regional Disparities and Transfer Policies in Russia: Theory and Evidence," IMF Working Papers 2001/199, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2001/199
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    References listed on IDEAS

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    1. Philippe Le Houerou & Michal Rutkowski, 1996. "Federal Transfers in Russia: Their Impact on Regional Revenues and Incomes," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 38(2-3), pages 21-44, September.
    2. DREZE, Jacques, 1993. "Regions of Europe," LIDAM Reprints CORE 1068, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Martinez-Vazquez, Jorge & McNab, Robert M., 2003. "Fiscal Decentralization and Economic Growth," World Development, Elsevier, vol. 31(9), pages 1597-1616, September.
    4. DREZE , Jacques H., 1993. "Regions of Europe : A Feasible Status, to be discussed," LIDAM Discussion Papers CORE 1993037, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    Cited by:

    1. Michel Le Breton & Shlomo Weber, 2003. "The Art of Making Everybody Happy: How to Prevent a Secession," IMF Staff Papers, Palgrave Macmillan, vol. 50(3), pages 1-4.
    2. Azarhoushang, Behzad & Rukavina, Marko, 2014. "Resource curse: A comparative study," IPE Working Papers 30/2014, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    3. Petr Blížkovský, 2012. "Regional disparities and convergences in Asia," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 60(4), pages 47-58.
    4. Mr. David Hauner, 2007. "Benchmarking the Efficiency of Public Expenditure in the Russian Federation," IMF Working Papers 2007/246, International Monetary Fund.
    5. Hadi Rahmani Fazli & Abbas Arabmazar, 2018. "A Mathematical Programing Model of Budget Allocation for Development Disparities Reduction among Iran Provinces," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 22(1), pages 235-251, Winter.
    6. Hauner, David, 2008. "Explaining Differences in Public Sector Efficiency: Evidence from Russia's Regions," World Development, Elsevier, vol. 36(10), pages 1745-1765, October.
    7. Petr Blizkovsky, 2012. "Are We Living in a Converging World? Regional Disparities and Convergences from a Global Perspective," Research in World Economy, Research in World Economy, Sciedu Press, vol. 3(2), pages 41-51, September.
    8. International Monetary Fund, 2007. "Russian Federation: Selected Issues," IMF Staff Country Reports 2007/352, International Monetary Fund.
    9. Voigt, Peter, 2004. "Russlands Weg vom Plan zum Markt: Sektorale Trends und regionale Spezifika. Eine Analyse der Produktivitäts- und Effizienzentwicklungen in der Transformationsphase," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 28, number 93021.

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