Is Russia’s Economic Growth Pro-Poor?
Is Russia’s Economic Growth Pro-Poor?

Author(s): Yuka Takeda
Subject(s): National Economy, Socio-Economic Research
Published by: Hokkaido Slavic-Eurasian Reserarch Center
Summary/Abstract: This study examines whether economic growth is pro-poor in Russia, using regional data from Rosstat (the Federal State Statistical Service of Russia) for 1995–2006. Although there have been only a few studies on income convergence in Russia, some studies have highlighted the slow convergence rate in the country (Yemtsov 2005; Lugovoi et al. 2007; Kholodilin et al. 2008). A significantly low convergence rate can cause a differential impact of economic growth on regional poverty. This study is one of the first attempts to address this issue (Takeda 2004a; 2004b; 2006). If Russian economic growth does not benefit the poorer regions much more, that is, if the growth is not found to be pro-poor, the government will need to seriously consider formulating economic policies directly aimed at pro-poor growth. This study aims to shed light on the significance of pro-poor growth policies in Russia. Section 2 briefly discusses the trends in Russian socio-economic indicators. In addition, we examine the relationship between the regional poverty rate and gross regional product (GRP). Section 3 discusses the data and methodology employed; Section 4 mainly describes the empirical results on the elasticity of the poverty rate with respect to GRP; and Section 5 presents the conclusions.

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