ИСТИНА

Given high level of regional heterogeneity (and its possible sources) in Russia (83 economically dissimilar regions), the principal objective of the research is to reveal effects of further financial deepening on accelerating economic growth in different Russian regions. In the context of policy implications of results, the research should also include a comparative analysis of stimulating development of different segments of financial sector. The main hypothesis to be tested is high level of heterogeneity in finance-growth nexus in line with the predominance of positive effects of further financial development on fostering economic growth across Russian regions. Region production pattern will be considered as one of the main sources of heterogeneity.3 As for comparative analysis of different ways to foster financial development, the null hypothesis consists in that it will be more effective to force financial deepening by increasing corporate lending than retail lending because the impact of the latter one mostly concentrates in increasing trade volumes. Testing of such hypotheses involves estimation of panel data regression models investigating interaction of financial deepening and GDP growth with taking into account possible ways to stimulate financial development and CART-technologies to assess a portrait of the Russian region in which proposed mechanisms of financial deepening could be successful for economic recovery.