Analysis of Economic Growth in Regions: Geographical and Institutional Aspect

Publication date
Wednesday, 31.10.2007

Authors
О. Lugovoy V. Dashkeyev I. Mazayev D. Fomchenko Е. Polyakov A. Hecht

Series
CEPRA

Annotation
This study explores disparity in regional development in Russia and in Canada and role of geography in their development. In the first chapter analysis of the role of geographic, economic, and institutional factors in economic growth over 1996–2004 is presented. Additionally the issue of the interregional spatial interaction is analyzed, which is studied in the framework of the new economic geography. The second chapter devoted to the development of Canadian provinces and analyzes factors of provincial differences along with factors of migration in Canada over the period of 1991–2001.

Contents

Chapter 1. Analysis of Economic Growth in Russian Regions: Geographical and Institutional Aspect ............................. 5
Introduction....................................................................................... 5
Determinants of Economic Growth: Recent Research Trends ............................................. 6
Specific Features of Cross-Regional Growth Studies.................... 9
Geography and Economic Growth............................................... 10
New Economic Geography ................................................... 11
Determinants of Economic Growth in Russian Regions: Empirical Analysis......................... 13
Data and Methodology................................................................. 14
Spatial Econometrics Methods .................................................... 15
Application of Mundlak’s Specification to Simultaneous Equations Model of Regional Growth.......... 17
Analysis of Spatial Autocorrelation of Economic Development .......................................................... 18
Description of the Main Hypotheses............................................ 23
Analysis of Convergence across Russian Regions with Respect to Spatial Dependence......................... 29
Concepts and Models of Convergence.................................. 30
Results of the Empirical Analysis of Convergence............... 33
Sigma Convergence (1996–2004) ......................................... 33
Beta Convergence (1998–2004)............................................ 39
Model of Economic Growth in Russian Regions......................... 60
Output Growth Equation ....................................................... 61
Labor Factors Input ............................................................... 63
Capital Input Factors ............................................................. 65
Gross Regional Product per Capita ....................................... 65
Estimation of the Model with 3SLS ...................................... 68
Model of Regional Growth with Spatial Relations ............... 75
Regional Growth Accounting................................................ 76
Scenario of Regional Economic Growth based on the SEM-Model .................... 77
Major Implications for Regional Policy ...................................... 78
Bibliography.................................................................................... 82
Appendix 1: Spatial Econometrics.................................................. 87
Weight Matrices .................................................................... 87
Spatial Correlation Statistics ................................................. 90
Spatial Lag Model ................................................................. 92
Spatial Cross Regressive Model............................................ 93
Spatial Error Model ............................................................... 94
Appendix 2. Estimation results of Russian regions economic growth model .............. 96
Appendix 3. Maps ......................................................................... 102
Chapter 2. Canadian Regional Economic Well-being:a spatial analysis of their differences ............ 103
Introduction................................................................................ 103
The Canadian Setting................................................................. 105
Canadian Development and Regional Well being ..................... 109
Analysis of Population Changes in Canada at the Census Division Level ......................... 122
Bibliography.................................................................................. 131

Notes
UDC 332.1.055.2:330.43
BBС 65.050.22в631.8
A53
Analysis of Economic Growth in Regions: Geographical and Institutional
Aspect / Consortium for Economic Policy Research and Advice; [Lugovoy O.
et al.]. – Moscow : IET, 2007. – 132 p. : il. – ISBN 978-5-93255-236-0.
Agency CIP RSL
The research and the publication were undertaken in the frame-work of  CEPRA (Consortium for Economic Policy Research and Advice), project funded by the Canadian Agency for International Development (CIDA).



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