The Place of the Regions in the Budgetary System of the Russian Federation (the "Balance of Accounts" and the Grounds for Financial Support) and Assessment of the Consequences of Mass Migration

Publication date
Tuesday, 29.10.2002

Authors
I. Gorshounov P. Kadochnikov I. Trunin K. Newbold A. Yudin

Series
CEPRA

Annotation
The problem of regulating the socio-economic development of the Russian North remains one of the most critical components of reformation of the Russian economy. This problem is of a complex nature and encompasses numerous legal, social, economic, financial, ethno-national, historical, ecological, and other aspects.

Contents

Introduction 5
Part 1. Financial flows from the federal budget to the northern regions 9
1.1. A general survey of relationships between the federal budget and the budgets of the northern regions 10
1.1.1. Non-targeted federal financial aid 10
1.1.2. Special purpose (targeted) financial aid 30
1.1.3. Overall assessment of financial aid received by the regions. 36
1.2. The balance of financial flows between the federal budget and the budgets of the northern regions 42
1.3. Proposals for improving the system of budgetary inter-relations with the regions of the North 45
1.3.1. Transfers from the Fund for Financial Support of the Regions. 48
1.3.2. Subventions and subsidies from the Compensations' Fund 50
1.3.3. Grants for reimbursement of expenses connected to transfer of a government agency's housing to municipal property ownership 51
Part 2. Theoretical and empirical analysis of factors influencing migration flows from the northern regions of the Russian Federation (RF). Assessment of the effectiveness of state migration programs 53
2.1. Survey of theoretical approaches for analyzing migration flows and factors influencing migration of the population 55
2.1.1. A definition and basic factors influencing migration 55
2.1.2. Macroeconomic approaches to modeling migrational flows 58
2.1.3. Microeconomic approaches to studying factors influencing migrational flows 67
2.1.4. Bridging macro- and micro-economic models for analyzing migration 74
2.2. The connection of immigration and internal migration: the influence of asymmetry of information in the labor market 76
2.2.1. Initial equilibrium in the labor market in the receiving region 78
2.2.2. Arrival of immigrants and its influence on the initial equilibrium 79
2.2.3. Possible scenarios for the labor market when the number of arriving migrants increases 81
2.3. Econometric testing of hypotheses on the influence of individual factors on the volumes of migrational flows 87
2.4. Methodology of cost-benefit analysis of state programs for facilitating migration of the population 94
2.4.1. Calculation of matrices of budgetary economy when there is migration of the population 94
2.4.2. Calculation taking capacity of the receiving regions into account 97
2.4.3. Calculation of budgetary effect for actual migrational flows 98
2.4.4. Assessment of change in the welfare of citizens as a consequence of increasing their real income (income in relation to the magnitude of the subsistence minimum) 100
Conclusions 102
Bibliography 110
Appendices 119

Notes

The Place of the Regions in the Budgetary System of the Russian Federation (the "Balance of Accounts" and the Grounds for Financial Support) and Assessment of the Consequences of Mass Migration. Moscow, 2002.
Authors: I. Gorshounov, P. Kadochnikov, I. Trunin, K. Newbold, A. Yudin
Editor: N. Glavatskaya
Page setting V. Yudichev
ISBN 5-93255-080-5
The research and the publication were undertaken in the framework of CEPRA (Consortium for Economic Policy, Research and Advice) project funded by the Canadian Agency for International Development (CIDA)



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