Inequality, Economic Growth and Modernization of Russian Regions

Tyumen State University Herald. Social, Economic, and Law Research


Release:

2017, Vol. 3. №3

Title: 
Inequality, Economic Growth and Modernization of Russian Regions


For citation: Tarasov V. T. 2017. “Inequality, Economic Growth and Modernization of Russian Regions”. Tyumen State University Herald. Social, Economic, and Law Research, vol. 3, no 3, pp. 207-225. DOI: 10.21684/2411-7897-2017-3-3-207-225

About the author:

Vladimir T. Tarasov, Cand. Sci. (Econ.), Associate Professor, Department of Economics and Management, the Russian Academy of National Economy and Public Administration (Cheboksary branch); tarvlad2015@yandex.ru

Abstract:

This article analyzes the impact of inequality in the incomes of the population of the Russian regions on economic growth and the processes of regional modernization in the framework of the new approach to the analysis of the structure of economic inequality developed by A. Yu. Shevyakov and A. Ya. Kiruta. This approach is based on the component decomposition of the general inequality into normal and excessive. The conclusions of these authors were tested for the first time by the panel regression method in relation to the regions of Russia in the context of the federal districts of 2005-2015. The article also estimates the impact of the structural components of inequality on the complex characteristics of the modernization of Russian regions using the information base “Modernization” of the research program “Problems of the Sociocultural Evolution of Russia and Its Regions”.

Statistical test results basically confirmed the findings of the above-mentioned researchers on the dual nature of the impact of inequality on economic growth and the formation of human potential. The results of the study also make it possible to extend similar conclusions to the whole process of modernizing the economy in its contemporary manifestations.

The main conclusion of the study is that this approach to the analysis of the structure of economic inequality must be considered as an important tool for substantiating social policy, because economic inequality affecting the economy is not only resource-based but also largely institutional in nature. Underestimation of the duality of inequality restrains economic growth, does not allow to fully use the potential of human development.

References:

  1. Lapin N. I. (ed.). 2016. Atlas modernizatsii Rossii i ee regionov: sotsioekonomicheskie i sotsiokul'turnye tendentsii i problemy [Atlas of Modernization of Russia and Its Regions: Socio-Economic and Sociocultural Trends and Problems]. Moscow: Ves Mir.
  2. Institut sotsiologii RAN. 2013. “Bednost' i neravenstva v sovremennoy Rossii: 10 let spustya” [Poverty and Inequality in Modern Russia: 10 Years Later]. Analytical report. Prepared in cooperation with the Friedrich Ebert Foundation Representative Office in the Russian Federation. Moscow: Institute of Sociology, Russian Academy of Sciences.
  3. IRChP sub"ektov Rossiyskoy Federatsii. [HDI of Subjects of the Russian Federation]. https://en.wikipedia.org/wiki/IIRC_Subject_Russian_Federation
  4. Krugman P. 2009. “Kredo liberal” [Credo of the Liberal]. In: Center for the Study of the Post-Industrial Society, introductory article. Moscow: Europe.
  5. Lapin N. A. 2013. “O strategii operezhayushchey sotsiokul'turno sbalansirovannoy modernizatsii” [About the Strategy of Advanced Socio-Cultural Balanced Modernization]. Evolution of Russian regions and strategies for their socio-cultural modernization: materials of the 9th All-Russian Scientific-Practical Conference Program “Sociocultural Evolution of Russia and Its Regions”, Vologda, October 23-26, 2013: in 3 parts. Part I, pp. 14-38. Vologda: ISEDT RAS.
  6. Piketti T. 2015. Kapital v XXI veke [Capital in the 21st Century]. Moscow: Hell Margin Press.
  7. Lapin N. I., Belyaeva L. A. (eds.). 2013. Problemy sotsiokul'turnoy modernizatsii regionov Rossii. [Problems of Socio-Cultural Modernization of Russian Regions]. Institute of Philosophy RAS. Moscow: Academia. 
  8. Ratnikova T. A., Furmanov K. K. 2014. Analiz panel'nykh dannykh i dannykh o dlitel'nosti sostoyaniy [Analysis of Panel Data and Data on the Duration of States]. Moscow: Higher School of Economics.
  9. Stiglitz J. 2015. Tsena neravenstva. Chem rassloenie obshchestva grozit nashemu budushchemu [The Price of Inequality. How the Stratification of Society Threatens Our Future]. Moscow: Eksmo.
  10. Tsentral'naya baza statisticheskikh dannykh Rosstata (TsBSD). [The Central Statistical Database of the Federal State Statistics Service]. http://cbsd.gks.ru
  11. Shevyakov A. Yu., Kiruta A. Ya. 2002. Izmerenie ekonomicheskogo neravenstva [Measuring Economic Inequality]. Moscow: Summer.
  12. Shevyakov A. Yu., Kiruta A. Ya. 2009. Neravenstvo, ekonomicheskiy rost i demografiya: neissledovannye vzaimosvyazi [Inequality, Economic Growth and Demography: Unexplored Interrelations]. Institute socio-econom. population problems of the Russian Academy of Sciences. Moscow: M-Studio.
  13. Atkinson, Anthony Barnes. 1997, “Bringing Income Distribution in from the Cold”. Economic Journal, vol. 107, pp. 297-321.
  14. Kuznets S. 1955. ”Economic Growth and Income Inequality”. The American Economic Review, vol. 45, no. 1, pp. 1-28.
  15. Lerman R. I., Yitzhaki S. A 1984. “Note on the Calculation and Interpretation of the Gini Index”. Economic Letters, no 15, рp. 363-368.