Author: Vyacheslav A. Bubnov

Abstract:

The existing practice of calculating the gross regional product (GRP) does not permit to distribute the gross domestic product (GDP) fully between Russian regions. The constantly increasing retained volume of GDP does not allow identifying the real contribution of a region or federal district’s economy to GDP. The paper justifies the method for calculation of gross regional product (GRP) on the basis of the tax accounting data that is formed while determining corporate income tax (when being distributed among the subjects of the Federation). The author presents the methodology for GDP redistribution allowing for the statistics of claimed and paid corporate income tax broken down by subjects of the Federation. The approach is validated and GRP for 2006–2012 is recalculated. This enabled the author to distribute GDP fully between Russia’s regions and federal districts, identify estimated volume of GRP and specify the difference between official and estimated GRP that appears due to the application of existing statistical approach.

Keywords: gross regional product; gross domestic product; a factor of production; corporate income tax; value added tax.