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Transition and Regional Inequality in Russia: Reorganization or Procrastination?

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  • Ms. Irina Dolinskaya
  • Ms. Irina Tytell

Abstract

This paper analyzes the evolution of interregional income inequality during transition in Russia. The transition matrix approach reveals that between 1991 and 1997 income mobility tended toward a highly uneven long-term distribution with the majority of regions at low income levels and a minority of higher-income regions, in sharp contrast to pretransition times. The ordered logit analysis suggests that the more successful regions prospered on account of their natural resources, while continuing to resist economic reorganization by supporting traditional enterprises. The less-successful regions appeared trapped at low income levels due to uncompetitive industries and lack of resources needed for restructuring.

Suggested Citation

  • Ms. Irina Dolinskaya & Ms. Irina Tytell, 2002. "Transition and Regional Inequality in Russia: Reorganization or Procrastination?," IMF Working Papers 2002/169, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2002/169
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    Cited by:

    1. Skorobogatov, Alexander S., 2018. "Why do newer cities promise higher wages in Russia?," Journal of Urban Economics, Elsevier, vol. 104(C), pages 16-34.
    2. Radwan Shaban & Hiromi Asoaka & Bob Barnes & Vladimir Drebentsov & John Langenbrunner & Sajaia Zurab & James Stevens & David Tarr & Emil Tesliuc & Olga Shabalina & Ruslan Yemtsov, 2006. "Reducing Poverty through Growth and Social Policy Reform in Russia," World Bank Publications - Books, The World Bank Group, number 6955.
    3. Solanko, Laura, 2003. "An empirical note on growth and convergence across Russian regions," BOFIT Discussion Papers 9/2003, Bank of Finland Institute for Emerging Economies (BOFIT).
    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. 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.
    6. Laura Solanko, 2003. "An empirical note on growth and convergence across Russian regions," Macroeconomics 0308005, University Library of Munich, Germany.
    7. Ickes, Barry W. & Ofer, Gur, 2006. "The political economy of structural change in Russia," European Journal of Political Economy, Elsevier, vol. 22(2), pages 409-434, June.
    8. K.P. Gluschenko (glu@nsu.ru ), 2010. "Income inequality in Russian regions: comparative analysis," Journal "Region: Economics and Sociology", Institute of Economics and Industrial Engineering of Siberian Branch of RAS, vol. 4.
    9. 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.
    10. Iwasaki, Ichiro & 岩﨑, 一郎 & Kumo, Kazuhiro & 雲, 和広, 2020. "Regional Determinants of Marriage Rates in Russia: A Dynamic Panel Data Analysis," RRC Working Paper Series 85, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    11. Ichiro Iwasaki & Kazuhiro Kumo, 2020. "Determinants of regional fertility in Russia: a dynamic panel data analysis," Post-Communist Economies, Taylor & Francis Journals, vol. 32(2), pages 176-214, February.
    12. Laura Solanko, 2003. "An empirical note on growth and convergence across Russian regions," Macroeconomics 0308005, University Library of Munich, Germany.
    13. Lehmann, Hartmut & Oshchepkov, Aleksey & Silvagni, Maria Giulia, 2020. "Regional Convergence in Russia: Estimating a Neoclassical Growth Model," IZA Discussion Papers 13039, Institute of Labor Economics (IZA).
    14. Sergei Guriev & Elena Vakulenko, 2012. "Convergence between Russian regions," Working Papers w0180, Center for Economic and Financial Research (CEFIR).
    15. repec:zbw:bofitp:2003_009 is not listed on IDEAS
    16. 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.
    17. 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.
    18. Gluschenko, Konstantin, 2006. "Biases in cross-spave comparisons through cross-time price indexes: the case of Russia," BOFIT Discussion Papers 9/2006, Bank of Finland Institute for Emerging Economies (BOFIT).
    19. 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).
    20. Anna Bufetova, 2016. "Trends toward the concentration of economic activity and uneven spatial development of Russia," ERSA conference papers ersa16p104, European Regional Science Association.
    21. 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.
    22. 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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