Specialists of the Central Bank of Russia (CBR) conducted a study and found the relationship between the increase in citizens’ incomes and economic development in Russia. They note that GDP growth per capita slows as income inequality rises. At the same time, increasing economic growth also contributes to the reduction of inequality in income distribution. These results were published in the article “Inequality and Economic Growth in Russia: Econometric Estimates of Dependencies” in the Central Bank magazine “Money and Credit”, the text of which was reviewed by the agency. RBC.
The researchers caution that such a two-way relationship is not trivial. There are many studies in the literature confirming the positive impact of inequality on economic growth, both for different countries in general and for high- and middle-income countries.
However, researchers from the Central Bank point out that there are not enough publications on Russian data on the relationship between inequality and economic growth.
As a result, they did the calculations themselves, based on a range of economic and inequality indicators in the country from 1994 to 2020. It is taken into account, including data on the regions of Russia. The analysis showed the negative impact of high inequality on the dynamics of gross regional product (GRP) per capita over long-term, medium-term and short-term time horizons.
Formerly at RANEPA saidIn the Russian regions, the level of inequality among the population increases with the share of natural resources in the local economy structure exceeding 30%. In addition, the increase in the share of citizens employed in the extraction of natural resources and minerals by more than 4% also affects this indicator.
former Central Bank declaration about a possible increase in key rate.