Arhive: #2 2019
NEW RESEARCH ON REGIONAL ECONOMY
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Balance is one of the economics’ cornerstone concepts. Researchers identify various types of balance, including commodity- money, industry, territorial, inter-period, etc. The universal representation of socio-economic systems in the form of a complex of object-oriented, project-oriented, environment-oriented and process-oriented systems enables to question the system balance, i.e., whether the scales of these subsystems are proportionate in the system. Furthermore, the concept of a system balance of the economy of the Russian Federation subjects, federal districts and the country as a whole appears. The paper aims to quantify the system balance of each subject and determine the current ratio of systemically balanced and unbalanced Russian subjects. The application of these correlations in the development of the Russian Federation’s socio-economic strategy will allow the increase of the socio-economic space’s connectivity. Moreover, it will impact the socio-economic policy’s continuity and targeting over time and the national economy’s sustainable development. Based on the provisions and methods of system economic theory, we evaluated the system balance of the Russian economy from a regional perspective. We calculated system balance index of the Russian Federation subjects, federal districts and the country as a whole. Then we identified groups of the Russian Federation subjects of with a high, medium and low degree of system balance. Further, we investigated the dynamics of the structure of groups of regions-leaders and regions-outsiders according to the degree of system balance for the period from 2012 to 2016. We created the heat map of the Russian economy’s system balance from a regional perspective. Finally, we created the guidelines for the system economic policy for territorial development, aimed at increasing the number of system balanced regions. The article justifies the need to include a section reflecting the proportions between the development of the object-oriented, environment- oriented, process-oriented and project-oriented subsystems of the region in the strategy of the Russian Federation subjects.
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When pursuing the goal of accelerating economic development, Russian regions face new challenges that actively impede it. In the Russian conditions, it is difficult to respond to the traditional challenges using åðó existing management methods. Moreover, new challenges require the development and application of new methods of regional management. Such methods should be qualitatively new and, at the same time, include accumulated positive management experience. We are interested in this problem because of its urgency for the Russian regional economy and the challenges’ complexity. We claim that gaps of rationality when making management decisions are one of the factors hindering the Russian regions’ development. We hypothesise that using the additive objective function of regional development will allow determining a combination of economic policy models that actively counteracts the gaps of rationality. Such combination will create conditions for the regional economy’s development within the planning horizon. Moreover, it will form prerequisites for the growth of gross regional product (GRP) in periods beyond this horizon. Based on the analysis’ results we described the connection between the gaps of rationality of the first, second and third type and three models of economic policy. We characterised the types of the gaps of rationality for each policy model. To overcome the gaps of rationality when making regional management decisions, we have proposed to combine models of economic policies that negate specific gaps. For selecting the optimal combination, we modified an additive objective function. It includes a characteristic of the integral level of regional economic development accumulated over a planning time span. Furthermore, it includes a characteristic of the possibility to obtain an acceptable level of regional economic development beyond this time span. In the framework of the examined planning horizon, we base a combination of economic policy models on the use of derivatives of the first, second and third orders of GRP. In the framework of the formation of prerequisites for the regional economy’s growth in the period beyond the planning horizon, we apply an average weighted assessment of the opportunities and threats to the region’s development, which is present at the starting point of the over-the-horizon planning. The results’ application might improve the regional economy management by forming criteria for choosing one or another model of economic policy when making management decisions considering the gaps in rationality.
NEW RESEARCH INTO REGIONAL ECONOMY PROBLEMS
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Income inequality is an important indicator of the modern Russian economy’s development. Economists and sociologists actively discuss the issues of reducing income differentiation and poverty on the global arena within the framework of approaches studying the so-called “new inequality’. At the same time, income inequality leads to new forms of inequality in household incomes. The article aims to assess the forms in which one generation’s financial success is reproduced in subsequent generations. Moreover, we examine to which extent a university degree provides social mobility. We analyzed the data on income inequality in Russia for the period from 1980 to 2015, presented in the World Database on Wealth and Income (WID), supplemented by the results of graduates’ monitoring we conducted. To process the data, we used classification and expert assessment methods. The analysis of the data on income inequality has revealed the stagnation in middle- and lower-class incomes due to increased incomes of the 10 % richest population. The study’s key conclusion is that investments (both state and private costs from family income) in obtaining a university degree by families with moderate financial success are effectiv e an d justifi ed in t he long term. The applicants from middle-income families require support: in such families, 49% of university graduates already have a similar level of income at the start of their careers, and another 16 % are financially successful. This group’s graduates are motivated to work in their professional sphere after graduation. The results are applicable for optimizing the admission process in leading universities, taking into account the approaches to income inequality. Such method can contribute to enhancing human potential in the Ural region and to ensuring effective investments in the development of higher education by state authorities.
SOCIO-ECONOMIC PROBLEMS OF REGION
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The article analyses domestic and foreign practice of assessing the regional government’s efficiency. It al so examines the legislative framework that regulates such assessment. Based on the analysis’ results we propose measures to improve the regulatory framework. The research hypothesis is that the current methodology for assessing the regional government’s efficiency cannot comprehensively reflect the real situation. Considering additional factors of social and innovative development, which mostly impact the gross domestic product as the main performance indicator of a region, will increase the effectiveness of the regional government. Using regression analysis, we determined, how much the indicators used for calculating the regional government’s efficiency in accordance with the legislative framework, influence the gross regional product. We also analysed additional factors that significantly impact the gross regional product. In addition, we built a comprehensive model for assessing the regional government’s efficiency based on the linear regression method. The research has shown that the current legislative framework does not include a complete list of factors that affect the region’s development. Furthermore, the criteria for defining the most efficient regions (that receive additional grant support based on the assessment) do not allow implementing the stimulating function for these measures. The current procedure for grant support allocation to the most efficient regions leads to the increase of the regional development’s differentiation. We provide a number of proposals for supplementing and improving the methodology for the regional government’s efficiency, which are based on including additional factors that allow a comprehensive assessment of the regional management’s efficiency. The study’s results can be used for justifying the changes and amendments to the current legislative acts.
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The economics of the Russian Federation is characterized by imbalanced social-economic development of its regions. For assessing the local regional imbalances we used the methods of multidimensional classification along with the methods of convergence analysis: methods of factor analysis, cluster analysis, discriminant analysis. The article offers to use exploratory factor analysis to cluster the Russian Federation’s regions. This method allows performing the procedure of classification structures’ identification when there is a large number of classification’s objects described by dozens of variables each. We checked the hypothesis that at a definite moment or period of time each region is described by some set of interconnected variables. This interconnection occurs due to exploratory factors which make these valuables interconnect in the necessary way. The model of exploratory factor analysis describes this situation. The basis of our research was the official Rosstat’s statistics for the period from 2014 to 2016. This specific period is characterized by changes in Russia’s spatial organization as two federal subjects, the city of Sevastopol and the Republic of Crimea, were included. As a result of calculations three exploratory factors have been defined: the first one encourages the usage of natural resources to form the gross regional product; the second one is interpreted as the factor that is not promoting the economic growth; the third one indicates the necessity to develop activity which is not connected with natural resources. We have distinguished eight economic clusters of subjects of three federal districts and have defined the character of the exploratory factors’ influence. The results of this research can be taken into account by the federal authorities during the comparative analysis of the economic development of the Russian Federation’s subjects, and formation of a developing strategy of the whole country in general and each subject in particular.
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This study focuses on the rationality of the migrants’ behaviour. We hypothesise that the migration growth rate depends on the territory attractiveness for living. The rational behaviour is defined as the direct depend-ence of the migrations on the characteristics of the territory attractiveness. The irrational behaviour means that the reverse dependence is present. The direct dependence is recognised if the level of the migrants’ pos-itive reactions to the factors of the territory attractiveness is no less than 30 % from the maximum. 83 sub-jects of the Russian Federation were clustered based on 12 objective characteristics of the life’s quality. We distinguished the largest Middle Cluster, which includes 56 regions. Further we transformed the panel data for the period from 2005 to 2015 into the array of the coefficients of correlations between the characteristics of the territory attractiveness and the migration growth rates in the regions. Using these characteristics, the regions were clustered again. The regional types of the Middle cluster with the rational and irrational behav-iours include 22 regions each. The level of the migrants’ positive reactions to the factors of the territory at-tractiveness is 44.1 % for the first (rational) regional type and 42.5% for the second (irrational) type. The regional type with the indifferent behaviour includes 12 regions. The level of the migrants’ reactions to the characteristics of these territory attractiveness is just 5.8 %. Based on the regression models of the migration coefficient for each cluster type, we have provided recommendations for managing the migration flows using the differential approach.
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Author E. A. Zakharchuk,The growing interest in the development of the Russian Federation’s Arctic territories affect s variou s aspect s o f space exploration, including technological, legal, geopolitical, social and economic aspects. At the same time, when studying the Arctic’s economic development, little attention is paid to the issues of financial efficiency and imbalance of the various territories development, especially in the context of municipalities. Therefore, this study aims to develop a methodology for assessing the formation of the value added in the territories belonging to the Russian Federation’s Arctic belt, based on the International System of National Accounts (SNA). This system enables both the comparisons within the Russian Federation and between different countries. The paper summarizes the Russian and international practice in developing a methodology for calculating the value added in the local-level territories (municipalities) as close to the SNA methodology as possible. Based on the author’s model for building the System of Territorial Accounts, taking into account special features of the financial development of Arctic municipalities’, I have developed an original method for calculating the value added in the local territories. That method is based on using regional accounts tables for generating income by type of economic activity and including taxes on products (excise duties and mineral extraction tax) into income composition. The calculations for all Arctic municipalities for the period from 2013 to 2016 resulted in the main conclusions for the Russian Federation’s regions. I have revealed that almost half of the Gross Value Added of the Russian Federation’s Arctic Zone is formed in the municipalities of the Yamalo-Nenets Autonomous Okrug. The territory of Krasnoyarsk Krai is in second place, and municipalities of Murmansk oblast are in third place (exactly 10 %). The Republic of Komi, Sakha and Nenets Autonomous Okrug contribute to Gross Domestic Product (GDP) by about 7 %. In general, according to the presented data, in 2016 the municipalities formed value added in the amount of 4,272.3 billion rubles, which is about 5 % of Russia’s GDP. At the same time, the share of paid taxes on products is much higher and amounted to almost a quarter of all the Russian budget’s revenues, or more than 687 billion rubles. The study’s results can be applied by federal and regional governments, as well as local authorities in the Arctic territories when making management decisions on the development of Arctic’s municipalities, taking into account their influence on the formation and distribution of the value added in the territories.
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The article focuses on the advancement of theory and methodology to develop a qualitatively new model of the regional clusters’ improvement using digital technologies. New conditions of the economy transformation define the model’s relevance. The study provides a scientific basis for the regional clusters’ formation in the context of the economy’s digitalization. For this purpose, we applied general scientific methodology using system and dialectic methods, deductions, decomposition, the economic analysis and synthesis. In addition, our methodological toolkit includes mathematical methods of statistical data’s processing. As a technique for analysing the region’s cluster development, we used the Difference in difference method (DiD) that allows assessing the effect of clustering as a difference of the results prior and after cluster’s formation. We tested our methodology on the example of the Lipetsk region, where the regional clustering is actively implemented thus implying the need for its improvement. In accordance with the offered model, we suggest to control cluster interactions by means of a virtual business environment in a form of the organizational platform with a multidimensional network architecture. Based on this model we developed a mechanism of interaction of the cluster participants in the course of organizing the region’s social and economic space. This mechanism suggests creating virtual platforms in the spheres of mutual interests and joint activity between the cluster’s participants (with a possibility of creating cooperative start-ups or venture enterprises). The developed conceptual model of regional clusters can be applied for the strategic development of «The valley of mechanical engineering» cluster. Further research can focus on the systems analysis of all clusters and their influence on the organization of the region’s social and economic space.
SOCIO-DEMOGRAPHIC POTENTIAL OF REGIONAL DEVELOPMENT
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In the context of globalization, Russian systems of education and science have become more open to the contacts with foreign partners. After the period of USSR’s isolation, in 1990s, Russian scientists and teachers began actively develop international partnership with foreign universities and research centers, receive grants, participate in conferences abroad, and publish in international journals. Russian graduates and postgraduates became active participants of education migration. In several years, from an ‘iron-curtain’ country Russia turned into a country that offers various forms of academic mobility for scientists, teaching staff and students. The stimulating factor for the international relations’ development was Russia’s accession to the Bologna declaration. In this research, using statistical, analytical, comparative legal, and sociological methods we clarify the term “academic mobility” in its conceptual understanding and suggest a classification of academic mobility’s types. The article describes the trends of the main forms of Russian academic mobility. Moreover, we outline ways to improve Russian national legislation for stimulating academic mobility in the interests of developing the national science and education systems. The article proposes a broad interpretation of the academic mobility’s definition as a mindset and readiness for movement (potential), as well as the actual territorial movement (academic migration) in order to receive education, advanced training, and scientific and educational activities for both students and teaching staff. The academic mobility’s types and forms can be classified in accordance with its geographical (territorial) aspect, activity, duration. Based on the classification, the article summarizes information in the context of two types of international academic mobility: incoming (entry) foreign citizens in Russia and outgoing (exit) Russian citizens from Russia. We have revealed that to a greater extent, the Russian migration legislation covers the academic mobility’s issue more than the legislation on higher education and science. In addition, the migration legislation of international academic mobility is interested more in attracting foreign students and teachers to the country, than in regulating Russian students’ and academic staf f’s mobility abroad. We have highlighted the factors impeding the realization of the Russian academic mobility’s potential and give recommendations for their elimination. The study’s results can be used in economic sociology, sociology of education, migration policy towards students.
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Population change is a very important indicator of the social and economic system’s state and development. This change is most clearly observed in the long term. In the second half of 20th century, the studies on the development of Russian settlement system have established that in the recent years population growth is almost entirely caused by the growth of urban population migration. Thus, we analyse the impact of the cities’ size on growth rates, and highlight territorial features and the effects from the economy’s structural reorganization. The analysis has demonstrated the cities’ structural transformation. The residents’ concentration in large localities is a well-established vector of the settlement system’s development in our country. The proportion of the population living in million-person cities has increased by 54.3 % over the past 50 years. The small and medium-sized towns act as the main sources of migrants and “suppliers” of labour and intellectual capital. In our research, we used methodology based on systems analysis of both urban development and group settlement systems. We applied methods of structural and dynamic analysis, and economic and mathematical modelling. The Zip f’s curve for Russian cities with a population of at least 100 thousand people indicates that a group of 11 million-person cities is dominant in Russia. Moreover, we presented the results of a cross-country comparison of settlement patterns. The comparison has revealed that the situation in the Russian Federation doesn’t fully correspond to the situation in developed or developing countries. The analysis of population’s structure and dynamics in Russian cities has allowed predicting the change in the urban population until 2025 (growth of about 1.8 %). The population growth rate is expected to be higher in the million-person cities. The increasing contrast of settlement , the expanding gap between megacities and provincial towns, formation of an agglomerative system of settlements will inevitably lead to an aggravation of infrastructure problems, which requires a transition to controlled development. Taking into account the identified trends will enhance the efficiency of forecasting the country’s economic development and the strategy of the settlement system’s optimization in Russia.
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Author Ye. B. Bedrina,The article focuses on the resettlement of labour migrants from foreign countries on a host territory. The research is based on empirical data allowing the estimation of the migration attractiveness of micro districts in Yekaterinburg that is among Russia’s biggest metropolises. Resulting from the fact that in Russian metropolises migrants form compact settlement, I question further development of such places. The study’s main goal is to identify the features of migrants’ resettlement, to assess enclavisation perspectives of Russian cities and to develop solutions for its limitation. I propose two hypotheses. Firstly, in view of spatial heterogeneity of Russian metropolises and networked pattern of migration from foreign countries, processes of enclavisation are possible. Secondly, in Russian conditions, the processes of enclavisation and formation of migrants’ compact settlement are negative and, thus, demand limitation measures. Based on scientific literature and expert survey I determined criteria of the migration attractiveness of Russian micro districts. Using Geographic Information System (GIS) I defined micro districts and assessed them in accordance with the chosen criteria. The obtained results were specified using the information on presence of migrants’ children in the city’s educational institutions. After studying the consequences of migrants’ resettlement, I give qualitative characterization of the researched processes. The rating of the migration attractiveness of Ekaterinburg’s micro districts can be used for identifying the platforms focused on social research of migration processes. This study is relevant for researchers, involved into the issues of international migration. Moreover, it may be useful for forming the instruments of migration policy and urban environment’s development.
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This article discusses peculiarities of the labour market functioning in the context of the digital economy development. It determines the main directions in the management of processes related to the accumulation and use of human capital as the production’s main factor in the context of digitalization. Our goal was to develop a multi-factor model of human capital efficiency in the digital economy. We used the materials of the Boston Consulting Group, the World Development Bank, and data from The Russia Longitudinal Monitoring Survey — Higher School of Economics (RLMS-HSE) as the study’s empirical base. As a research methodology, we chose a regression analysis based on the initial sample of data from RLMS 25, wave 2016, “Data on IBM SPSS individuals”. For the study of factors, we utilized the traditional J. Mincer equation, supplemented by quantitative and qualitative variables. We proved that expanding the range of parameters increases the coefficient of determination and the statistical significance of the parameters. On the basis of the empirical material, we confirmed a number of hypotheses on the determinants of the effective use of human capital in the digital economy. Particularly, the hypothesis about the impact of production experience on wages as an indicator of returns to human capital, previously put forward and supported by J. Mincer and his followers, is not confirmed for the digital economy. Digital technologies, replacing the old working methods, render the previous skills and organizational approaches irrelevant. Transformations caused by the environment’s automation and digitalization change the working activities from clearly defined work responsibilities to design work. The development of skills in digital knowledge application is an essential factor for the effective use of human capital in the digital economy. These skills enable workers’ adaptation to changing work processes and the employers’ requirements. The study’s results show that the correct interpretation of the determinants that affect the efficiency of the human capital use allow choosing the right targeting tools for managing human capital as a factor of economic growth.
BRANCH AND INTER-BRANCH COMPLEXES
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The article discusses determining the location of the key logistics infrastructure in regions in order to reduce the distribution network’s costs, increase the region’s transit potential and investment appeal, and integrate the region into the global supply chain. We suggest the methodological approach to developing the models of the region’s logistics infrastructure. It efficiently connects transport and storage networks in the region and allows determining the capacity of the key infrastructure. As the criterion, we consider the total costs of delivering the material flow to the consumer. The method includes two stages. At the first stage, using the region’s main socio-economic indicators, we determine the cities and districts, where the placement of the infrastructure will be more profitable. To solve this problem we suggest implementing the two-step cluster analysis, discriminant analysis, and ABC methods. The joint use of those methods allows achieving a coherent result that ensures the optimal choice of areas for locating the main elements of warehouse (distribution center, and distribution and sorting warehouses) and transport networks (car fleets and terminals). The second stage involves geo-referencing of the infrastructure on the administrative territorial units, defined at the first stage. For determining the location and capacity of the distribution and sorting warehouses, we propose to apply mathematic programming, using the total costs of the delivery and transshipment of goods as the criterion. For organizing the transport infrastructure, linked to the generated warehouse network, we suggest an approach, which allows minimizing cargo shipping’s costs and car fleet and terminals’ maintenance. To solve the optimization problems we suggest using the method of separable programming and branch-and-bound method. The article demonstrates the appliance of the proposed method on the example of Volgograd oblast. The obtained results can be used to form the region’s logistics infrastructure.
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Author O. V. Mazurova,The article presents estimates regarding the scale of changes arising from the mass introduction of electric vehicles. The relevance of this paper is determined by the increasing demands for the environmental cleanliness of transport energy sources. It is obvious that in the future alternative fuel vehicles will crowd out oil fuel transport. I propose an original approach to the economic evaluation of the alternative resources’ use in transport taking into account regional conditions and initial data’s uncertainty. It allows comparing new technologies in transport and choosing the most efficien t option s fo r powe r suppl y of passengers and freight vehicles in the country’s different regions. The main feature of the proposed model is the combination of optimization and simulation methods based on the Monte Carlo technique. The study identifies the trends in the dynamics of motorization and the structure of energy resources in the transport sector and assesses the possible consequences of the electric vehicles’ introduction in Russia. It also includes the results of experimental calculations using various combinations of expected conditions and forecasting prices in accordance with the demand for motor fuel in major macro regions of Russia. The article has demonstrated that the economic efficiency of the use of alternative fuels and energy in transport will depend on regional characteristics, in particular, on the dynamics of changes in prices for energy resources. The proposed methodological approach and the results obtained can be useful in studying the problems of the power industry development.
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Author O. Yu. Patrakeeva,Growth rate of Krasnodar Krai’s economy demonstrates a pronounced slowdown in recent years. This dynamics resulted from both the completion of the regions’ previous investment cycle and Russia’s macro trends. Thus, the assessment of the effect of Crimean Bridge on gross regional product (GRP) is of a great methodological and practical interest. I hypothesize that region’s investments in fixed capital stimulate production and trade turnover. They, in turn, contribute to the dynamics of GRP through the increase in cargo traffic. I implemented the proposed solution to assessing the effect of Crimean Bridge’s launch on Krasnodar Krai by constructing a systemic and dynamic model of the region’s basic industries. I took into account interrelated econometric equations including the simulation component of the macro environment factor. Econometric equations that form the model’s structure are based on the chain of nonlinear interdependences of capital expenditures and dynamics of the regions’ basic industries. They affect the volume of cargo traffic and, in turn, influence economic growth. I constructed the systemic and dynamic model with the simulation component via structural modelling package iThink 9.0.2. I applied the data provided by Federal State Statistics Service and federal ministries. As a result, I obtained the matrix demonstrating the states of Krasnodar Krai’s economy. Probabilistic outcome of these states depends on the implementation of the scenarios of investment activities and cargo traffic. The conservative estimate of infrastructural effect suggests an additional increase in Krasnodar Krai’s GRP in the range from 0.8 % to 1.19 %. The model’s first limitation is that the investment level corresponds to the forecast of the Ministry of Economic Development. The second limitation is that the structure of investment in the region is comparable with the structure of investment in the period of construction of econometric dependencies that underlining the model. The proposed model can be further modified by refining and detailing the underlying equations. Moreover, it can include alternative distribution functions of scenario variables.
AGROFOOD MARKET: NEW VECTOR OF DEVELOPMENT
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The article proposes methodological toolkit that takes into account using rural areas’ potential for transition from sectoral to multi-industry economy. The research hypothesis suggests the possibility of creating the system of socio-economic indicators for diagnosing the diversification level in rural economy and providing recommendations for its further development. The research methodology of this problem is highly developed. However, the studies of the opportunities for rural economy diversification are impeded due to the lack of the necessary information and statistical base, which reflect sectoral and resource aspects. Moreover, a unified methodological approach is lacking. We have developed a diagnostic technique of rural economy diversification, which evaluates human, economic and social resources and identifies the priority areas for agricultural and non-agricultural activities and services based on the statistical and expert methods. The proposed technique includes the following stages. The first stage is the selection of indicators characterizing the availability and use of rural areas’ resources. Secondly, we calculate the individual indexes of resource availability. Thirdly, we identify indicators’ weighting factors based on correlation and regression analysis. Fourthly, we measure the levels of the indicators using statistical data. The fifth stage is the expert assessment of the diversification potential directions and choosing the most appropriate one. On the six stage, we define the diversification integrity level. Lastly, we elaborate measures for the rural economy development and forecast their implementation. The conclusions of diversification diagnosis reflect the real situation and allow selecting alternative activities to increase the employment and living standards of rural population. The study’s results can be used by the governing bodies in developing a differentiated policy of rural development.
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The article analyses characteristics of the participation of the Eurasian Economic Union’s (EAEU) member states in the World Trade Organization (WTO) and its impact on the Eurasian economic integration. We described the contradictions in the regulatory frameworks between the WTO agreements and regional trade agreements. Moreover, we offered the ways to overcome these contradictions. We demonstrated the role of the economic and legal exemptions that operate on the EAEU’s domestic agrarian market in connection with the accession of Russia and Kazakhstan to the WTO. On the one hand, these exemptions were shaped under the influence of tariff commitments made by Russia in the field of agriculture. On the other hand, they were formed due to Kazakhstan’s subsequent entry into the WTO and the discrepancy of its tariff obligations for agricultural products with Russia’s tariff obligations in the conditions of functioning of the EAEU’s common customs tariff. We explored Kazakhstan’s tariff commitments to the WTO. We have proved that for the EAEU’s further effective development, its participants need to initiate compensation negotiations with other WTO members in order to equalize the overall level of the import duties on the EAEU territory. The study’s results can be applied for harmonization of the tariff rates of the EAEU members. It is necessary for achieving the most effective joint economic development and implementing the coordinated foreign trade policy in various economic sectors, including agro-industrial policy and agricultural development of the EAEU states.
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The paper focuses on the most important economic processes taking place in the dairy regions of the Eurasian Economic Union. The article reveals the specific features of the dairy sector’s development in the chosen regions in the context of Eurasian integration. Moreover, it discusses the challenges faced by the regions and prospects of the regional development. Consequently, we formulated some recommendations for solving current problems. We based our study on the theoretical developments of various scientists and economists, and statistical and other information. We applied various methods of investigation, including analysis, comparisons and econometric modelling. We outlined some of the study’s limitations related to a rather short history of the union’s existence and insufficiency of the available statistical information. The procurement price for milk depends on a number of factors. Using the modelling tool, we have shown this dependence on the example of the Republic of Tatarstan, which is the largest region-producer of milk in the union. The study’s scientific novelty is in determining the main directions of the dairy sector’s transformation in the regions. Furthermore, our research proposes a model for assessing the influence of the certain factors on procurement prices in the industry. The study’s results can be applied for developing and implementing the state and regional economic policies.
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This article explores the dependence of the agro-industrial products of the Republic of Kazakhstan on the development level of rural production, social and transport infrastructure. The paper presents main trend of the indices of the agribusiness infrastructural development in the Republic of Kazakhstan according to the time series based on the statistical data of Kazakhstan. The study revealed that the level of endowment in social and industrial infrastructure of agriculture in Kazakhstan remains extremely unstable. This circumstance can consequently form a tendency for a decline and even degradation of the Kazakh villages. As a result, it can lead to a violation and decline of the reproductive processes in the agribusiness, which, in turn, will negatively affect the endowment in products from agricultural raw materials. Hence, the formation and development of the agribusiness infrastructure is seen as an indispensable condition for the effective interaction of the actors of the main and auxiliary production, contributing to the development of general prerequisites for the growth and development of agricultural products. The results of the research can be used by the state in investing social, transport and production development of the village to ensure food security. Agricultural development of rural areas in Kazakhstan based on improving the infrastructure will increase the welfare of rural workers, solve the problem of quality food for the population of the country, and take an active part in the global task of eradicating hunger on the planet.
EXTERNAL ECONOMIC ACTIVITY
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The article reveals the trends in foreign economic development of Russian and American pharmaceutical industry. The study aims to substantiate the trends of prevailing import dependence of Russian pharmaceutical sector and export orientation of American one. Moreover, we define the main directions of export in Russian pharmaceutical industry based on the development trends of world industry leaders. We focus on identifying what is the nature and how close is the relationship between the factors of business’ innovation and complexity, on the one hand, and increasing the sector’s export orientation, on the other hand. The research methodology is based on the domestic and foreign literature on foreign economic activity in pharmaceutical industry. Furthermore, the methods include the pharmaceutical industry assessment by international institutions (particularly, the World Economic Forum). We used the data from United Nations Conference on Trade and Development (UNCTAD) statistics, American and Russian international ratings, and the results of analytical studies of innovation processes in bio-pharm-medical sector. We hypothesise that there is a correlation between the factors of business innovations and maturity, and the volume of pharmaceutical industry export. The correlation analysis has revealed the relation between innovation development and export growth, suggesting the export’s integration into the national strategy of pharmaceutical industry. The comparative analysis of the Russian and American pharmaceutical industries has demonstrated that the increase in the export-oriented products in Russian pharmaceutical industry will be determined by the degree of the integration of information technologies into all stages of research and pharmaceutical business. The developers and ideologists of national export strategy in pharmaceutical industry might implement the study’s conclusions and recommendations on federal and regional levels. Further scientific research should focus on substantiating ways to increase the pharmaceutical industry’s competitiveness, corresponding to the fundamental information, technological and personnel challenges of this industry development.
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Author M. I. Maslennikov,The article examines the development trends and influence of the big business on the world and Russian economies. The paper describes the dynamics of the main indicators of big business development via indicators of the total revenue, capitalization, foreign economic activity. In this research, I determine the contribution of the various components to the formation of gross domestic product (GDP) in different world regions, particularly in the USA, China and Russia. The dynamics of the indicators reflecting big business’ development, and positive and negative sides of the business’ monopolization is analysed. Special attention is paid to explore the emerging centres of scientific, technological, and economic power (primarily in South-East Asia). Furthermore, the paper analyses the newly formed mechanisms and toolset for stimulating the big business’ development such as tax and amortization benefits and privileges that lead to reducing the business’ tax burden. The research shows the internal and external factors, including political ones, which either stimulate or hinder the development of big business in various world regions. The analysis of the business activity of the 500 largest world and American corporations and 400 largest Russian companies illustrates the dynamics of the big business’ development in the leading regions of the world including the USA, China and Russia through. This analysis has revealed how much big business affects the development of the world economic relations. The obtained results can be used for developing the scenarios of the advancement of the Russian economy. Additionally, they can be applied for assessing the potential and real opportunities for the big business to increase the main development indicators and discover the possibilities for stimulating the country’s economic growth.
THE REGION'S FINANCES
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The article focuses on solving the task of analysing statistical data on households’ income and their main components in absolute and relative units. We took into account a number of additional indicators, including social transfers, and applied the principle component method. The analysis’ purpose was to identify patterns of «clustering». The first step was to identify clusters of the Russian Federation regions, which vary in terms of population’s revenue structure taking into account the volumes of subsidies and subventions. The second step was to determine the generalized characteristics of the revealed clusters and their representation in a form of clustering rules. We have shown that the cluster structure of the households sector at the regional level is sufficiently polarized. We have revealed the small clusters of regions characterized by a high level of households’ monetary income and relatively large population (e. g. Moscow, Khanty-Mansi Autonomous Okrug). Alternatively, there are sufficiently inhabited clusters of regions with both a considerable volume of non-monetary income in a form of food combined and the low or average level of monetary income and small positive dynamics of population (Bryansk, Kursk Oblasts). On the other hand, in the regions with a relatively low monetary income, the revenue structure includes a high share of natural supplies in the form of food (for example, Republic of Dagestan and Republic of Ingushetia). Moreover, in the regions with a high monetary income, there is a small share of the raised funds and spent savings in revenue structure (Yamalo-Nenets Autonomous Okrug and others). We have constructed clusters of regions and established their quantity, structure and generalized characteristics presented in the form of clustering rules. We used that data for defining structural and parametrical characteristics when developing a dynamic model of the households sector and the module of intellectual management. These dynamic model and the module became a part of the system of imitating dynamic modelling and intellectual management (SIDMIM) of population income generation. The application of SIDMIM involves scenario studies for decision-making in managing the population income at the regional level considering differentiation in the income level.
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Author A. G. Isaev,The Russian Federation has a high degree of the socio-economic differentiation among its regions, which objectively requires large-scale redistribution of funds between them. Intergovernmental transfers are one of the main tools of this redistribution. Other things being equal, an increase in transfers to the region leads to an increase in the unpaid goods’ consumption by its residents, which ultimately affects their welfare. Moreover, these changes stimulate interregional migration. Therefore, the resulting change in welfare depends on multiple economic forces. Based on a computable model of general equilibrium with two regions, I assessed the effects of intergovernmental transfers for the Khabarovsk Krai’ economy. The specific feature of the model is the behaviour of regional governments, which optimize the regional tax rate and budget expenditures in a non-cooperative game to maximize the utility function of resident households. The latter are completely mobile between regions and consume two types of goods, private and state-provided ones, under given budgetary restrictions. I carried out simulation estimations for two scenarios differing in motivation incentives of households to change their residency. Calculations have shown that a sharp increase (more than twofold) in the federal budget grants may lead to a significant inflow of labour resources to the recipient region, but changes in welfare, wages and per capita household consumption will be minor. The reason is the behaviour of the regional governments, balancing the households’ consumer basket by changing the volume of local government spending. Ultimately, the actions of regional authorities seeking to maximize the residents’ welfare will result in such changes in tax revenues, which will compensate the increase in households’ consumption of the state-provided goods by the decrease in funding of the same goods from the regional budget.