The impact of fiscal decentralization on economic growth of regions of the Russian Federation
https://doi.org/10.26425/1816-4277-2022-12-145-153
Abstract
One of the priority goals for the state policy is ensuring sustainable economic growth. The theory of fiscal federalism argues that fiscal decentralization fosters both regional and national economic development by providing the opportunity to coordinate regional needs and national policy goals. The purpose of the study is to assess the impact of fiscal decentralization on the economic development of Russian regions. The analysis was conducted with panel data for 83 regions for the period 1996–2019. The simultaneous quantile regression approach with bootstrapping standard error was used for econometric modelling. The results of the study show that fiscal decentralization does not contribute to the economic development of more prosperous regions of the Russian Federation, whereas in less developed regions, fiscal decentralization indicators have a significant negative effect on the gross regional product per capita. Based on the results obtained, proposals aimed at improving state policies were made.
Keywords
Fiscal decentralization,
economic development,
Russian regions,
government expenditures,
quantile regression
Supporting agencies: The article was prepared in accordance with the plan for research for 2022 of the Laboratory of Modeling of Territories’ Spatial Development of the Institute of Economics of the Ural Branch of the Russian Academy of Sciences.
About the Author
R. I. Vasilyeva
Institute of Economics of the Ural Branch of the Russian Academy of Sciences
Russian Federation
Rogneda I. Vasilyeva - Junior Researcher at the Laboratory of Modeling of Territories’ Spatial Development
Russian Federation
Rogneda I. Vasilyeva - Junior Researcher at the Laboratory of Modeling of Territories’ Spatial Development
Yekaterinburg
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Review
For citations:
Vasilyeva R.I. The impact of fiscal decentralization on economic growth of regions of the Russian Federation. Vestnik Universiteta. 2022;1(12):145-153. (In Russ.) https://doi.org/10.26425/1816-4277-2022-12-145-153
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