Is Russia Still Driving Regional Economic Growth?

This paper investigates whether the linkages between economic growth in Russia and growth in other countries in the region have weakened over time, particularly following the 1998 Russian crisis. It specifies an econometric model that includes standard growth determinants as well as Russian economic growth, and which allows for the effects of Russian growth to vary over time. The paper finds that Russian growth was indeed a significant determinant of regional economic growth prior to the Russian crisis, but that this link weakened significantly thereafter.Economic growth;Baltics;Trade;Production;real gdp, gdp growth, correlation, growth rates, gdp growth rates, independent variables, statistics, equation, statistic, business cycles, dummy variables, growth rate, correlations, dummy variable, regression equation, regional economic growth, sensitivity analysis, standard errors, time series, instrumental variables, economic growth performances, logarithm, number of parameters, growth accounting, statistical tests, business cycle, economic growth rate, cointegration, transmission of business cycles, regression analysis, samples, nonlinearity, survey, fixed effects model, gross domestic product, econometrics, estimation procedure, per capita income, coefficient vector, equations, estimation method, properties of business cycles, estimation of equation, functional form