Arhive: #2 2011

Institutes of regional development and competitiveness in the conditions of modernization

This paper discusses the problem of identifying the institutions that influence the development of regions. A systematization of regional development institutions is implemented. Institutions of macro-, meso-, micro- and nano-levels of the economy affecting regional development are highlighted; at each level of the economy the institutions functioning properly and development institutions are also highlighted. The institutions are also systematically divided by type of adjustable rules. The role of institutions in the concept of regional competitiveness is examined. The indexes of regional competitiveness indicators, excluding the institutional environment of regions, are criticized. It is noted that the concept of regional competitiveness considers the region as an economic entity, which can and must prove its right to income with its economic performance, rather than capital status or informal practices of receiving transfers. Formation of the region and the competitiveness of a business entity depends on the maturity of the regional elites and their consolidation, as well as the institutional environment that encourages regional development and prevents monopoly of certain regions. The results of the quantitative analysis of the impact of institutions on the performance of regional development are presented. In particular, the influence of institutions such as corruption, small business and institutional trust is reviewed. The level of corruption is measured by the CPI index, its impact on economic growth in the sample of 12 countries that are close to Russia in terms of development, as well as at the level of Russian regions is considered. According to 2009-2010, the impact on regional development of the newly created development institutions such as foundations to promote small and medium enterprises, regional mortgage funds, special economic zones and regional venture capital funds is analyzed.