Economic Growth and Verdoorn's Law in the Russian Regions

In this paper, the regional economic growth process is analysed within the context of Verdoorn’s law. The aim of this article is to measure whether Verdoorn’s hypothesis holds true in the case of the Russian regions over 2005–2015. It is believed that this is an appropriate model for this country given that manufacturing still represents a considerable share of the Russian gross domestic product. The validity of Verdoorn’s growth model is empirically tested by econometric methods. In order to obtain more reliable results, the applied approach pays attention to the spillover effects across regional economies by means of adding control variables and spatial econometric techniques. The paper includes motivation of the research in the context of Russia, review of the last works in this field, data description, explanation of specification of the model and empirical results.