Increasing Returns and Economic Growth of Russian Regions: Empirical Verification of Verdoorn’s Law

ERI FEB RAS	Issue's contents	RUS
	Regionalistica 2020 Volume 7 number 6 pages 39-48

Title of the article	Increasing Returns and Economic Growth of Russian Regions: Empirical Verification of Verdoorn’s Law
Pages	39-48
Author	Isaev Artem Gennadyevich Candidate of science (economics), deputy director for research Economic Research Institute FEB RAS 153, Tikhookeanskaya Street, Khabarovsk, Russia, 680042 This email address is being protected from spambots. You need JavaScript enabled to view it. ORCID: 0000-0001-6569-2982
Abstract	The paper tests the Kaldor-Verdoorn model on the base of the Russian Federation regional data for 2005–2017. According to the model, the process of regional growth has the property of cumulative causality. As a result of the benefits bringing by economies of scale, industrialized regions demonstrate faster growth rates at the expense of their economically less-advanced counterparts. Traditional and extended model specifications are examined. The extended specification additionally takes into account the presence of large agglomerations in a number of Russian regions. Estimates demonstrate the presence of cumulative causality and significant increasing returns to scale in manufacturing industry of Russian regions. Meanwhile, the study did not reveal an impact of large industrial agglomerations on the growth rates of the corresponding regions.
Code	332.055.2
DOI	10.14530/reg.2020.6.39
Keywords	regional growth ♦ divergence ♦ increasing returns ♦ manufacturing ♦ Verdoorn’s law ♦ agglomeration ♦ Strategy of spatial development
Download	2020-06.39.pdf
For citation	Isaev A.G. Increasing Returns and Economic Growth of Russian Regions: Empirical Verification of Verdoorn’s Law. Regionalistica [Regionalistics]. 2020. Vol. 7. No. 6. Pp. 39–48. http://dx.doi.org/10.14530/reg.2020.6.39 (In Russian)
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