In pursuit of its transition from a command to a market economy, Russia has witnessed enormous regional differences in economic growth rates. Moreover, the implementation of economic reforms has also differed markedly across regions. This paper analyzes whether regional differences in reform policies can account for regional differences in growth rates, and concludes that to a considerable degree, they can. Most notably, regional differences in price liberalization policies exhibit a positive direct correspondence with growth. Regional differences in large-scale privatization exhibit a positive correspondence with the regional formation of new legal enterprises, which in turn exhibits a strong positive correspondence with growth.
