UID:
edoccha_9959310785202883
Format:
1 online resource (24 pages)
ISBN:
1-4843-3066-8
,
1-4843-3070-6
Series Statement:
IMF Working Papers
Content:
Sound regional policies are essential for balanced and sustained economic growth. The interaction of federal and regional policies with cross-regional structural differences affect human and physical capital formation, the business climate, private investment, market depth, and competition. This paper summarizes the main elements of Russia's fiscal federalism, describes the channels through which it operates, and assesses the effectiveness of regional transfers in reducing regional disparities. The results suggest that federal transfers to regions contributed to reducing disparities arising from heterogeneous regional tax bases and fiscal revenues. This allowed regions with initially lower per capita income to increase human and physical capital at higher rates. There is little evidence for transfers contributing to increased cross-regional growth synchronization. The results also suggest that federal transfers did not significantly improve regional fiscal sustainability, a conclusion that is supported by the lack of convergence in per capita real income across Russian regions in the last 15 years.
Note:
Cover -- Contents -- 1 Introduction -- 2 Russia's Fiscal Federalism in the International Context -- 3 Federal Transfers to Regions: Achievements and Challenges -- 3.1 Background -- 3.2 Federal Transfers and Public Goods' Supply Disparities -- 3.3 Federal Transfers and Cross-Regional Growth Correlation -- 3.4 Federal Transfers and the Sustainability of Regional Budgets -- 4 Discussion and Some Policy Implications -- References -- A Further Details about Fiscal Federalism in Russia -- A.1 Limits Imposed by the Federal Government on Regional Budgets -- B Data -- List of Figures -- 1 Features of Russia's Fiscal Federalism -- 2 Own Fiscal Revenues, Per Capita Income, and GRP Composition -- 3 Federal Transfers and Per Capita Income -- 4 Federal Transfers and Accumulation of Factors of Production -- 5 Federal Transfers, Public Sector Expansion, and TFP Increases -- List of Tables -- 1 Estimation Results for Bilateral Per Capita GRP Growth Correlations -- 2 Specifications for Federal Transfers in a Simultaneous Equations System -- 3 Estimations for Federal Transfers in a Simultaneous Equations System -- 4 GRP Convergence Across Regions -- A.1 Tax and Non-Tax Revenue Sharing Agreement -- A.2 Spending Responsibilities and Jurisdiction by Level of Government -- B.1 Variable Definitions.
Additional Edition:
ISBN 1-4843-3016-1
Language:
English
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