Before the isolation: Russian regional β‑convergence 2001–2019 before the pandemic and Ukrainian war

Vicente German-Soto, Gregory Brock

Research output: Contribution to journalArticlepeer-review

Abstract

Using a general method of moments (GMM) aggregate production function adjusted
for spatial autocorrelation, Russian regions 2001–2019 are found to exhibit no β
convergence/divergence before 2009, 1% convergence 2009–2014 and then none
again 2015–2019. Both human and physical capital contribute to aggregate growth
as neoclassical theory predicts. Spatial autocorrelation suggests the measurement of
spatial regional interdependence in Russia is more complex than in the U.S., EU or
Mexico with the standard use of adjacent borders or railroad distances data not cap‑
turing regional interdependency. At the beginning of 2020, Russia’s regions had not
transitioned to intensive instead of extensive growth making regional growth stagna‑
tion and no further convergence likely in the decade to come.
Original languageAmerican English
JournalEconomic Change and Restructuring
Volume56
DOIs
StatePublished - Jun 26 2023

Disciplines

  • Growth and Development
  • Regional Economics

Keywords

  • Convergence
  • Russian regions
  • human capital

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