Comparative study of regional economic strategy and industrial policy in Russia 1990-1999

Friedman, Renee (2001) Comparative study of regional economic strategy and industrial policy in Russia 1990-1999. Doctoral thesis, University of London: London Business School.

Abstract

This thesis is an examination of the factors affecting economic performance and prospects for growth during Russia's transition from a centrally planned economy to a market oriented economy. The primary hypotheses to be tested are that 1) long run supply factors (e. g., human capital and labour) are important for growth 2) IRS, agglomeration and strategic trade policies have an influence on growth and 3) transition policy and instruments of policy used affect growth trends. The key hypothesis that is tested is that inheritance, defined as the type of economic structure derived from inherent characteristics of region combined with industrial development that occurred during the Soviet period, is the sole determinant of prospects for restructuring and long run growth. Within the Russian Federation there are 89 regions recognised by the 1993 constitution. These regions, although subject to the legal constraints imposed by the federal government, have been given a variety of rights directly within the constitution and through bilateral agreements. These rights and agreements give regions the opportunity to create, to a certain extent, their own economic and industrial policies. This study examines on a case by case basis how four carefully selected regions have used their economic inheritance, their resources, and their political rights in influencing growth trends. We conclude with a comparative view of these regions growth trends based upon quantitative data that is supported by qualitative results. Trends and prospects for growth are drawn from theoretical arguments within the literature covering growth theory, development economics, economic geography, industrial policy, and transition economics. An important contribution to research on transition economies is the detailed data and qualitative information obtained at the regional level.