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Econometric Evaluation of Spatial Effects in Major Macroeconomic Indicators in Russia

Student: Afanas`eva Anna

Supervisor: Olga Demidova

Faculty: School of Statistics, Data Analysis and Demography

Educational Programme: Bachelor

Year of Graduation: 2014

In this paper we attempt to show that traditional statistical and econometric methods are insolvent when the objects of analysis are the regions. It occurs because regions influence each other, they are interdependent. For example, regions with high rate of unemployment are likely situated nearby with those in which the level of unemployment is also quite high.

Therefore, methods of spatial econometrics give better results since they take into account the extent to which different regions influence each other. To prove this fact the current paper analyzes data on 77 Russian regions for the period from 2000 to 2012. The level of unemployment in the Russian regions was investigated by means of different spatial econometric models for cross-sectional and panel data.

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