Publication:
Fiscal Federalism and Regional Growth : Evidence from the Russian Federation in the 1990s

Simple item page
dc.contributor.authorDesai, Raj M.
dc.contributor.authorFreinkman, Lev M.
dc.contributor.authorGoldberg, Itzhak
dc.date.accessioned2014-04-25T17:08:26Z
dc.date.available2014-04-25T17:08:26Z
dc.date.issued2003-09
dc.description.abstractSubnational fiscal autonomy-the basis for fiscal federalism in modern federations-is meant to serve two roles. First, local control over revenue collection is meant to provide a check on the capacity of central authorities to tax arbitrarily local capital. Second, retention of taxes raised locally is meant to establish incentives for subnational governmental authorities to foster endemic economic growth as a way of promoting local tax bases. But in the Russian Federation, fiscally autonomous regions have often resisted market-oriented reforms, the enactment of rules protecting private property, and the dismantling of price controls and barriers to trade. The authors find statistical evidence in support of the hypothesis that fiscal incentives of the Russian regions represent an important determinant of regional economic performance. The authors also seek to understand the conditions under which fiscal autonomy prompts regional growth and recovery, and the conditions under which it has adverse economic effects. They argue that the presence of "unearned" income streams-particularly in the form of revenues from natural resource production or from budgetary transfers from the central government-has turned regions dependent on these income sources into "rentier" regions. As such, governments in these regions have used local control over revenues and expenditures to shelter certain firms (natural resource producers or loss-making enterprises) from market forces. Using new fiscal data from 80 Russian regions from 1996-99, the authors test this central hypothesis in both single- and simultaneous-equation specifications. Their results indicate that tax retention (as a proxy for fiscal autonomy) has a positive effect on the cumulative output recovery of regions since the breakup of the Soviet Union. But they also find that this effect decreases as rentable income streams to regions increase.en
dc.identifierhttp://documents.worldbank.org/curated/en/2003/09/2542334/fiscal-federalism-regional-growth-evidence-russian-federation-1990s
dc.identifier.doi10.1596/1813-9450-3138
dc.identifier.urihttps://hdl.handle.net/10986/18059
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 3138
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectAUDITING
dc.subjectAUTHORITY
dc.subjectAUTONOMOUS REGIONS
dc.subjectAUTONOMY
dc.subjectBANKRUPTCY
dc.subjectBUDGET REVENUES
dc.subjectBUDGETARY FUNDS
dc.subjectCENTRAL GOVERNMENT
dc.subjectCENTRALIZATION
dc.subjectCITIES
dc.subjectCOMPARATIVE ADVANTAGE
dc.subjectCORPORATE INCOME TAXES
dc.subjectCORRUPTION
dc.subjectDEBT
dc.subjectDEBT RESTRUCTURING
dc.subjectDECENTRALIZATION
dc.subjectDEMOCRATIZATION
dc.subjectDEVOLUTION
dc.subjectDIVISION OF POWERS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectECONOMIC EFFECTS
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC IMPACT
dc.subjectECONOMIC PERFORMANCE
dc.subjectECONOMIC REFORM
dc.subjectEMPIRICAL ANALYSIS
dc.subjectENACTMENT
dc.subjectENTERPRISE RESTRUCTURING
dc.subjectENTREPRENEURSHIP
dc.subjectEQUALIZATION
dc.subjectEXPENDITURE
dc.subjectEXPENDITURE ASSIGNMENTS
dc.subjectEXPENDITURE MANAGEMENT
dc.subjectEXPENDITURE RESPONSIBILITIES
dc.subjectFEDERAL AGENCIES
dc.subjectFEDERAL GOVERNMENT
dc.subjectFEDERAL LEGISLATION
dc.subjectFEDERALISM
dc.subjectFEDERATIONS
dc.subjectFINANCIAL POLICIES
dc.subjectFINANCIAL SUPPORT
dc.subjectFISCAL
dc.subjectFISCAL DECENTRALIZATION
dc.subjectFISCAL FEDERALISM
dc.subjectFISCAL INCENTIVES
dc.subjectFISCAL POLICIES
dc.subjectFISCAL POLICY
dc.subjectGOVERNMENT OFFICIALS
dc.subjectGOVERNMENTAL POLICIES
dc.subjectHOUSING
dc.subjectHUMAN CAPITAL
dc.subjectINCOME
dc.subjectINCOME INEQUALITY
dc.subjectLAWS
dc.subjectLEGAL FRAMEWORK
dc.subjectLEVELS OF GOVERNMENT
dc.subjectLOBBYING
dc.subjectLOCAL ENTERPRISES
dc.subjectLOCAL GOVERNMENT
dc.subjectLOCAL GOVERNMENTS
dc.subjectLOCAL SPENDING
dc.subjectLOCAL TAX
dc.subjectLOCAL TAXES
dc.subjectMERITOCRACY
dc.subjectMETALS
dc.subjectMUNICIPAL REVENUES
dc.subjectMUNICIPALITIES
dc.subjectMUNICIPALITY
dc.subjectNATIONAL EXPENDITURES
dc.subjectNATIONAL GOVERNMENTS
dc.subjectNATIONAL LEVEL
dc.subjectNATIONAL TAXES
dc.subjectNATURAL RESOURCES
dc.subjectOIL
dc.subjectPOLITICAL DECENTRALIZATION
dc.subjectPOLITICIANS
dc.subjectPREFERENTIAL TAX TREATMENT
dc.subjectPRIVATE PROPERTY
dc.subjectPRIVATE SECTOR
dc.subjectPRODUCERS
dc.subjectPROVINCIAL GOVERNMENTS
dc.subjectPUBLIC FINANCE
dc.subjectPUBLIC FINANCE SYSTEM
dc.subjectPUBLIC GOODS
dc.subjectPUBLIC OFFICIALS
dc.subjectPUBLIC PROCUREMENT
dc.subjectPUBLIC SERVICES
dc.subjectRENT-SEEKING BEHAVIOR
dc.subjectREPRESENTATIVES
dc.subjectREVENUE COLLECTION
dc.subjectREVENUE SHARING
dc.subjectREVENUE SHARING SCHEMES
dc.subjectSEPARATION OF POWERS
dc.subjectSOFT BUDGET CONSTRAINTS
dc.subjectSTATE-OWNED ENTERPRISES
dc.subjectSTREAMS
dc.subjectSUBNATIONAL GOVERNMENTS
dc.subjectTAX ARREARS
dc.subjectTAX BURDEN
dc.subjectTAX COLLECTIONS
dc.subjectTAX EXEMPTIONS
dc.subjectTAX REVENUE
dc.subjectTAX REVENUES
dc.subjectTAX SHARING
dc.subjectTAXATION
dc.subjectTRANSITION ECONOMIES
dc.subjectTRANSPARENCY
dc.subjectUNFUNDED MANDATES
dc.subjectURBAN ECONOMY
dc.subjectUTILITIES FISCAL FEDERALISM
dc.subjectSUBNATIONAL FINANCES
dc.subjectREVENUE MOBILIZATION
dc.subjectTAX COLLECTION
dc.subjectINTERGOVERNMENTAL FISCAL RELATIONS
dc.subjectINTERGOVERNMENTAL TAX RELATIONS
dc.subjectINTERGOVERNMENTAL TRANSFER OF FUNDS
dc.subjectNATURAL RESOURCE EXTRACTION
dc.subjectENTERPRISE SUPPORT
dc.subjectDECENTRALIZATION
dc.subjectUTILITIES
dc.titleFiscal Federalism and Regional Growth : Evidence from the Russian Federation in the 1990sen
dspace.entity.typePublication
okr.crossref.titleFiscal Federalism and Regional Growth: Evidence from the Russian Federation in the 1990s
okr.date.doiregistration2025-04-10T09:53:41.711188Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2003/09/2542334/fiscal-federalism-regional-growth-evidence-russian-federation-1990s
okr.globalpracticeSocial, Urban, Rural and Resilience
okr.globalpracticeGovernance
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.guid309621468763230436
okr.identifier.doi10.1596/1813-9450-3138
okr.identifier.externaldocumentum000160016_20031009172913
okr.identifier.internaldocumentum2542334
okr.identifier.reportWPS3138
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2003/10/09/000160016_20031009172913/Rendered/PDF/wps3138.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.countryRussian Federation
okr.topicBanks and Banking Reform
okr.topicEnvironmental Economics and Policies
okr.topicGovernance::National Governance
okr.topicUrban Development::Municipal Financial Management
okr.topicPublic Sector Economics and Finance
okr.topicFinance and Financial Sector Development
okr.unitOff of Sr VP Dev Econ/Chief Econ (DECVP)
okr.volume1 of 1
relation.isAuthorOfPublication7d13264e-5b0a-57fc-8bc2-40dcec43acaf
relation.isAuthorOfPublication.latestForDiscovery7d13264e-5b0a-57fc-8bc2-40dcec43acaf
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
wps3138.pdf
Size:
357.93 KB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
wps3138.txt
Size:
110.81 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers