How (not) to measure Russian regional institutions

Baranov, Alexey; Malkov, Egor; Polishchuk, Leonid; Rochlitz, Michael; Syunyaev, Georgiy

doi:10.1016/j.ruje.2015.11.005

Cited by 36 publications

(14 citation statements)

References 42 publications

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“…The highest growth rates were recorded in the least developed regions of the countries which have recently become members of the EU, suggesting that a convergence process took place. Rodríguez‐Pose () stated in their study that the efficiency of the local institutions could constitute an economic engine to push regional growth, despite the difficulties consisting in the endogeneity between institutions and regional economic development and the problem of measuring the efficiency of local institutions (Rodríguez‐Pose ; Baranov et al ).…”

Section: Literature Survey and Methodological Issuesmentioning

confidence: 99%

Institutional quality and the growth rates of the Italian regions: The costs of regulatory complexity

Vita

2018

Papers in Regional Science

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In this paper we study the impact of regulatory complexity, a measure of institutional quality, on the GDP, on per capita income and on the growth rate of the Italian regions. For comparative reasons we also use the duration of civil disputes as a further indicator of institutional quality used in the regressions as an alternative to the indicator of regulatory complexity. From the theoretical point of view, we use the approach of negative co‐ordination externalities, among the four sources of regulatory production that are at work at the same time. Our approach may be applied in all the countries with a multi‐level government system. Using the random effects and quantile regressions models we are able to quantify the effects of an improvement in institutional quality on the GDP and the growth rate, making a comparison between the results obtained using regulatory complexity or the duration of civil disputes as covariates. We also check for spatial dependence among variables. Econometric analysis supports the theoretical assumption that regulatory complexity is an impediment to the growth of regional GDP and per capita income. The main finding of our analysis is that a reduction in regulatory complexity would be more effective than a reduction in the duration of civil disputes in increasing the income and growth rate. This result could be useful for the policy‐maker because by reducing regulatory complexity we may obtain a considerable by‐product in the shorter duration of civil disputes.

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Section: Literature Survey and Methodological Issuesmentioning

confidence: 99%

Institutional quality and the growth rates of the Italian regions: The costs of regulatory complexity

Vita

2018

Papers in Regional Science

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“…Russia is a particular interesting case to study the costs of corruption: it is a former superpower and currently a 13 th biggest economy in the world in terms of nominal GDP (World Bank estimation for 2015) and suffers severely from corruption, being ranked 131 out of 176 countries by Transparency International in 2016. 4 While corruption is wide-spread in Russia, its regions are neither equally corrupt (Baranov et al 2015), nor are they equally economically developed. They are, however, homogeneous in terms of official language, system of law, culture, history and traditions, which provides an ideal setting for econometric analysis.…”

Section: Introductionmentioning

confidence: 99%

Does corruption hinder investment? Evidence from Russian regions

Zakharov

2019

European Journal of Political Economy

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This paper investigates the causal relationship between corruption and fixed capital investment in Russian regions. The panel data on corruption allow to control for unobserved heterogeneity with fixed effects estimation. We address the problem of endogeneity by introducing novel instrumental variables for corruption: the presence of free press and violations of journalists' rights. Our main result is the strong negative effect of corruption on aggregate investment in fixed capital. Disaggregating investment by ownership, we find that corruption decreases private investment, but not investment made by state-owned companies. The effect is larger for companies with foreign ownership. We also observe a strong negative relationship between regional import of capital goods and corruption.

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“…Kapelyushnikov and Latov (2004) consider the relationship of institutions of centralized ownership, Polterovich pays special attention to the issue of institutional transformation and institutional traps. In a number of works, development specifics of the institutional system are used to explain the differences in economic development of individual countries and regions (Baranov et al, 2015). Other economists closely link the development of institutional factors and economic growth, noting that they are more significant than geographic location and culture (Asemoglu et al, 2005).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Russian economists Nureev (2009), Gareyev (2010), Vol'chik (2013), Baranov (2015), etc., are searching for characteristics of the institutional system of regional development. They connect the existence of uneven development of Russian regions with the ineffectiveness of the existing institutional system, generating social tension within the country and creating obstacles to its further modernization.…”

Section: Literature Reviewmentioning

confidence: 99%

Institutional aspect of the Russian economy regional development

Matveev

Trubetskaya

Lunin

et al. 2018

Problems and Perspectives in Management

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The urgency of the issue under research takes place due to the fact that the institutional system forms prerequisites for economic development of regions and affects the rate of economic growth and welfare of the population not only at the local, but also at the federal level. The article reveals the peculiarities of the institutional aspect of regional development, gives recommendations on the improvement of institutions to smooth the unevenness of regional development. As a scientific and methodological basis, the methods of analysis and synthesis are used in the work, which allow to reveal the features of regional institutions at the present stage. The use of statistical data reflecting the main characteristics of Russian regions made it possible to reveal that regions develop unevenly both in time and in space. The reasons for this are insufficient performance efficiency of institutions, which duplicates the powers of federal and regional authorities, the state’s participation in realizing ownership rights in the private property system, insufficient protection of property rights, bureaucratic procedures, and financial problems in the Russian economy. The above-mentioned shortcomings in the system of regional institutes reduce the competitiveness of regions, and reduce the volume of investments, which leads to further strengthening of their uneven development, and exacerbating the issue of income differences of the population. The authors believe that in order to improve the system of regional institutions and overcome the asymmetry, it is necessary to systematize resources, develop differentiated interaction at the regional and federal levels, and evaluate the effectiveness of the decisions made with the help of leading indicators in business cycle phases.

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How (not) to measure Russian regional institutions

Cited by 36 publications

References 42 publications

Institutional quality and the growth rates of the Italian regions: The costs of regulatory complexity

Institutional quality and the growth rates of the Italian regions: The costs of regulatory complexity

Does corruption hinder investment? Evidence from Russian regions

Institutional aspect of the Russian economy regional development

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