Regional Disparities and Transfer Policies in Russia: Theory and Evidence


Era Dabla-Norris ; Shlomo Weber

Publication Date:

December 1, 2001

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate


In this paper we examine economic disparities across regions in Russia and offer a theoretical treatment of various transfer rules between different regions. We analyze the principle of partial equalization, which implies that the more depressed regions should be subsidized by the more advantaged regions, but, the burden on more prosperous regions should not be excessive. Although, contrary to the partial equalization principle, the gaps between the richer and poorer regions have widened since the transition, there are some signs that this trend could be reversed.


Working Paper No. 2001/199



Publication Date:

December 1, 2001



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