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Study of the factors of interregional convergence/divergence in real incomes and «social well-being» of Russian regions

Study of the factors of interregional convergence/divergence in real incomes and «social well-being» of Russian regions

Journal of Economic Regulation, , Vol. 6 (no. 4),

The purpose of this paper is the measurement of the degree of inter-regional convergence / divergence of Russian regions in per capita GRP, nominal and real incomes and social well-being index (SWI) in 2004-2013, as well as the evaluation of the factors that have caused these changes. Methods: deflation of household incomes by means of relative cost of living index in the regions; measurement of social well-being, based on the index of localization of real incomes relatively intraregional Gini coefficient; calculation of weighted indices of inter-regional differentiation (Gini and variation coefficients, Hachman, Theil and Atkinson indexes); proportional method of factor analysis. Results obtained: 1) in 2004-2013 in Russia there was a convergence of all regional indicators, however, in a change of the social well-being index there are two periods of divergence: 2009 (a weak growth) and 2012 (a significant burst); 2) the main factors of regions’ convergence in the SWI were: (re) distribution factor (its impact over time increased significantly), inflation factor (it is observed a small reduction in its influence) and the factor of intraregional income inequality (its influence is mainly depleted). The results may be useful for different levels government in the management of regional development.

Keywords: gross regional product; the nominal and real incomes of the population; the index of social well-being; inter-regional unevenness; income inequality indicators; convergence; divergence

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