Latest Articles from Russian Journal of Economics Latest 2 Articles from Russian Journal of Economics https://rujec.org/ Fri, 29 Mar 2024 00:51:04 +0200 Pensoft FeedCreator https://rujec.org/i/logo.jpg Latest Articles from Russian Journal of Economics https://rujec.org/ Public expenditure for agricultural sector in Russia: Does it promote growth? https://rujec.org/article/49756/ Russian Journal of Economics 6(1): 42-55

DOI: 10.32609/j.ruje.6.49756

Authors: Olga V. Shik

Abstract: This paper presents the findings of the agriculture public expenditure review (PER) for the Russian Federation. It reviews the policy instruments and historical trends in the volumes and composition of budget support and investigates their role in recent agricultural growth. The paper also analyzes the effect of public spending in 2006–2017 on growth in agriculture using the fixed effects model and find positive effect. Support for general services is the most efficient method of agricultural spending, but in the Russian agricultural budget the subsidies to individual producers prevail. While the prevalence of the subsidies in the budget benefits the largest and most successful producers, this was part of the strategy to create strong value chains in order to compete with imports. However, the efficiency of investment support is decreasing. The paper explores the distribution of support between national and sub-national levels of budgeting system, and finds that the regionalization of support leads to market disintegration and efficiency losses.

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Research Article Wed, 25 Mar 2020 02:30:35 +0200
Fiscal federalism and regional performance in Russia https://rujec.org/article/27741/ Russian Journal of Economics 4(2): 108-132

DOI: 10.3897/j.ruje.4.27741

Authors: Gabriel Di Bella, Oksana Dynnikova, Francesco Grigoli

Abstract: Sound regional policies are essential for balanced and sustained economic growth. The interaction of federal and regional policies with cross-regional structural differences affects 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.

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Research Article Sat, 30 Jun 2018 10:56:44 +0300