Testing differences in efficiency of regions within a country: The case of Ukraine

Demchuk, Pavlo and Zelenyuk, Valentin (2009) Testing differences in efficiency of regions within a country: The case of Ukraine. Journal of Productivity Analysis, 32 2: 81-102. doi:10.1007/s11123-009-0136-8

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Author Demchuk, Pavlo
Zelenyuk, Valentin
Title Testing differences in efficiency of regions within a country: The case of Ukraine
Journal name Journal of Productivity Analysis   Check publisher's open access policy
ISSN 0895-562X
Publication date 2009-10
Sub-type Article (original research)
DOI 10.1007/s11123-009-0136-8
Volume 32
Issue 2
Start page 81
End page 102
Total pages 12
Place of publication New York, United States
Publisher Springer New York LLC
Language eng
Formatted abstract
In this paper we synthesize and adopt the recently developed methods in efficiency analysis to the case of comparison of regions within a country. We take Ukrainian regions as a subject of investigation, yet the same toolkit can be applied to test disputable differences in productivity for many other countries where such questions can be of national concern (e.g., Belgium, Great Britain, Spain, etc.). Contrary to common perception of economists focusing on Ukraine, we find no significant differences in distributions and aggregate efficiencies between the agricultural and industrial regions, neither between western (mostly Ukrainian speaking) and eastern (mostly Russian speaking) regions of Ukraine. However, we find strong support for a rapidly increasing gap between the capital (Kyiv) and all the regions since 2001. Using truncated regression analysis with bootstrap we also find robust evidence that the inefficiency of regions is positively related to alcohol and tobacco consumption, the amount of foreign direct investment and inversely related to criminality in the region. On the other hand, we also find strong evidence that amount of capital in the region and its wealth is positively associated with efficiency level of this region.
Keyword Ukraine
Efficiency convergence
Regional performance
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Non-UQ

Document type: Journal Article
Sub-type: Article (original research)
Collection: School of Economics Publications
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Citation counts: TR Web of Science Citation Count  Cited 3 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 4 times in Scopus Article | Citations
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Created: Wed, 18 May 2011, 14:42:26 EST by Alys Hohnen on behalf of School of Economics