Spatial Distribution of Investment in Russia: Impact on Inter-Regional Inequality
Using the official data on the subjects of the Russian Federation the author assesses the impact of variations of the spatial distribution of investment in 2012 on the dynamics of regional disparities in 2011-2012 by per capita GRP and the overall indicator - the level of economic development. This general index can be evaluated on the basis of combination of two target indicators - economic dynamics and the region's welfare. To study the spatial distribution of investment as a factor of inter- regional inequality the researcher employs panel data regression analysis of regional investment, individual indicators that make up the overall index of economic development and two-factor Cobb - Douglas production function. The author identifies 4 groups of the subjects of the Russian Federation by the level of economic development: highly developed, developed, middle-developed and least developed ones. The study shows that a high value of investments per region in the group of high-developed ones boosts the national economy and reduces regional inequalities on both counts. However, an equal spatial distribution of investments decreases Russia's GDP and regional disparities in total.