Complex issues of regional growth dependence on the level of financial sector development 1068 <i>Yane V.S.</i> Socio-economic situation of the Volga Federal District in the context of implementation of the program for sustainable development of Russian regions
Importance The paper develops the area of endogenous economic growth theory that focuses on the relationships between financial development and economic dynamics at the national and sub-national levels.  Objectives The study aims to identify regular differences in the level and statistical significance of the coefficients of regression models with financial development variables for groups of regions with different levels of financial sector development averaged for the studied period.  Methods To estimate coefficients, we use an individual fixed-effect model. Regions are classified in terms of the cumulative index of availability of banking services in the region. We use real GRP per capita as an indicator of economic dynamics. The analysis covers the panel data on 75 Russian regions for the period of 2002-2014.  Results We found that the impact of financial development indicators on the economic growth is more intensive in groups of regions with an average level of financial development.  Conclusions The findings support the hypothesis on nonmonotonic dependence of finance and growth among different groups of Russian regions.