Arhive: #4 2020
NEW RESEARCH INTO REGIONAL ECONOMY PROBLEMS
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The framework guiding the spatial development of the Russian Federation is widely discussed. However, the characteristics of an optimally organised space are yet to be defined. This research focuses on one of the aspects of this problem, aiming to identify the characteristics of the optimal spatial organisation of the regional economy depending on the degree of homogeneity of socio-economic space. We examined four Russian regions comparable in area and administrative-territorial division, but differing in economic activity (Krasnodar Krai, the Republic of Tatarstan, Chelyabinsk Oblast and Kemerovo Oblast). For that purpose, we applied spatial analysis methods: spatial autocorrelation, cartographic analysis. The examined regions are characterised by varying degrees of spatial heterogeneity. It is most significant in the Chelyabinsk Oblast, where 46% of the population lives in the territory of two municipalities that produce 73 % of the regional products. The territories of Chelyabinsk Oblast differ the most in terms of output (R/P is 994.65). The degree of heterogeneity is also high in the Republic of Tatarstan, characterised by the differentiation of municipalities in terms of inhabitants (the maximum R/P is 42.09) and fragmentation of space (the global Moran’s index for the considered parameters is less than its expected value). Krasnodar Krai is the most homogeneous (the production R/P is 131.57, the settlement R/P is 14.52) and integrated territory (spatial autocorrelation is positive). Simultaneously, there is no clear relationship between the degree of spatial homogeneity and the efficiency of economic activity in the regions in the short term. The results show that it is impossible to use a single unified model for the development of various territories. Thus, it is necessary to apply a differentiated approach when determining spatial development guidelines. The obtained results can be used by public authorities in the field of spatial development management. Moreover, they can be used for further research of other parameters of spatial organisation that are not related to its homogeneity.
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The paper aims to assess how the existing imbalance between the education system and the regional economy influences the formation of spatial inequality and uneven economic development. Based on the structural and comparative analysis of data on Russia and China as the members of the Organization for Economic Co-operation and Development, we demonstrate that the technologies of the 4th Industrial Revolution shift the demand for highly skilled labour force. This situation leads to the gap between labour demand and supply, as the education systems are oriented to the economic needs of the 3rd Industrial Revolution. We consider cross-country differences in the quantity of STEM graduates and researchers (science, technology, engineering, and mathematics) as a possible cause of spatial inequality in the context of digital transformation. Further, on the example of Russia, we apply correlation and regression analysis to show that the discrepancy between the skill level of graduates and market expectations contributes to regional development inequality. We demonstrate the strong relationship between the share of unemployed persons among the economically active population and the skills of the labour force for all federal districts of the Russian Federation. On average, an increase in the share of employees with higher or secondary vocational education by 1 % decreases unemployment by 0.32 %. Additionally, in all federal districts of Russia, there is a discrepancy between the economic need for highly qualified workers with higher education and the education system producing too many specialists with secondary vocational education. The discrepancy between the structure of skilled labour force produced by the education system and the employment structure in the labour market by 10 % increases unemployment by almost 1 %. The results of the study can be used by the government for creating the development strategy of the education system and reducing spatial inequality.
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Single-industry regions, common to all industrially developed countries, need to overcome the economic crises. We assume that it is possible to achieve this goal based on new forms of cooperation between the main participants: business, state, education, and science. Based on the triple helix model, the study develops a mechanism for cooperation between higher education and business in depressed single-industry regions. The model was tested on the example of the Republic of Kazakhstan. We use the methodological principles of logical, statistical analysis and synthesis. To increase the impact of universities on the national economic growth, we propose a cooperation mechanism based on the Triple Helix model. This model is adapted to the specificity of single-industry and depressed regions, where regional universities play a dominant role as a source of innovation and innovative synergy for the cooperation of partners involved. Simultaneously, the creation of new forms of cooperation between higher education and business leads to the acceleration of social and economic development of regions. The mechanism of the proposed triple helix model aims to encourage all participants to generate innovations, provide high-quality educational services, conduct research and fill business orders. Local and state authorities in the field of economic management can use the results and conclusions of the survey for creating regional development programmes.
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The Ñovid-19 pandemic has catalysed the inevitable digitalisation of communications and rapidly changed the organisation and technologies of professional activities of millions of employees worldwide. The growth of unemployment, the transition of professional groups to remote work (wherever possible) due to the need for isolation to minimise the spread of COVID-19 in 2020 led to radical changes in the labour market. Studying the processes of precariation can facilitate the search for responses to new challenges related to deregulation of labour relations. We are interested in examining the participation of youth in these processes. Young population is receptive to social innovation and has excellent competencies in the field of information technology. An analysis of professional trajectories of university graduates (employed in the Ural region and beyond) helps identify whether precarious employment in the labour market can be successful, and determine the characteristics of social groups involved. We used the monitoring of university graduates conducted in 2017–2019 based on survey and administrative data. To process the data, we applied the methods of classification and expert evaluations. The analysis showed that 34.4% of university graduates belong to the precariat, with only 8.8 % being unemployed. Young freelancers and IT-professionals are successfully employed, satisfied with their jobs and high salaries, demonstrating high rates of employment in their specialty. The results can be applied for balancing precarious work; its best practices, accumulated by freelancers and IT-professionals, can be used as a social tool for regulating labour relations in an unfavourable epidemiological situation.
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Author Valery A. Kryukov, Alexandr O. Baranov, Victor N. Pavlov, Victor I. Suslov, Nikita I. Suslov,The study reviews approaches to macro-economic and macro-territorial modelling presented in international and Russian economic publications. We focus on opportunities to improve forecasting the development of economic system in Russia at the macro-economic, inter-sectoral and inter-regional levels. We described dynamic macro-economic, inter-sectoral and inter- regional models developed in the Institute of Economics and Industrial Engineering of the Siberian Branch of the Russian Academy of Sciences (IEIE SB RAS). We analyse more in details three complex models proposed in IEIE SB RAS: CAISI (comprehensive analysis of inter-sectoral information), SRNES (synthesis of regional and national economic systems) and CSNES (coordination of sectoral and national economic solutions). We consider theoretical foundations of the complex models and their application in analysing and forecasting economic system development at various levels. The three complex models are based on different basic models that influence their development. IEIE SB RAS has been developing a two-level system of forecasting models, which combines advantages of dynamic stochastic general equilibrium models and dynamic input-output models applied in the CAISI system. The paper describes theoretical foundations of the SRNES system, whose latest versions are premised on the general equilibrium and cooperative games theories. Then, we characterised the most developed elements of the complex model CSNES, which has the CSNES-TEK subsystem used in forecasting developments in the fuel and energy industry of Russia’s territories and SIBARP (balance calculation system for the future). The conclusion outlines directions for further research on improving the methods of macro-economic, inter-regional, and inter-sectoral forecasting based on harmonisation of analytical and forecast calculations performed using the CAISI, SRNES and CSNES systems. The results of forecast calculations using the two-level system of macro-level models can be applied in the complex models SRNES and CSNES to ensure coordination between the forecasts of socio-economic development of the Asian part of Russia and projected dynamics of macro-indicators.
REGIONAL SOCIAL AND ECONOMIC PROBLEMS
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Recently, higher education in Russia and abroad has been transformed significantly. Both universities and the state have to tackle challenging and multidirectional tasks. Analysis of theoretical research on the types of higher education institutions and the determining factors provides insights into drivers for development. Simultaneously, multivariate methodology for assessing the state of higher education allows identifying the factors that most affect its transformation. Th e stud y demonstrate s that these factors depend on the development strategy and economic model of a university as well as government programmes for the development of education and science. One of the major factors affecting the development of regional higher education is the presence of a leading university in the region. This situation is economically justified due to the strong dependence of universities on the federal budget. Moreover, a leading university creates an educational environment for academic staff and students. Their participation in scientifi c researc h an d academi c activitie s positivel y influen ce t he developme nt of regional systems. The growing gap between the leading university and other education institutions leads to monopolisation, decrease in competition, and, consequently, decline in performance. Thus, there is a need for structural changes. The particular factors affecting the development of the higher education are the indicators of academic activity and student performance. The conducted analysis suggests the intensification of the trends, indicating further differentiation of regional higher education system with a simultaneous improvement of individual universities in research and development. Additionally, it is necessary to examine the feasibility of structural adjustment within regional systems due to the growing imbalances in development.
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The problem of income inequality is globally relevant, receiving the attention of both scientists and pol- iticians. Lithuania as a small country has made significant progress in approaching the standard of liv- ing in Western Europe. However, there are still differences in economic growth between separate popula- tion groups. Thus, the problem of income inequality remains very acute. Currently, researchers are widely discussing the risk of income inequality to the country’s society by analysing its causes and proposing var- ious solutions. Although scientific debates address income inequality across regions, such studies are often limited to examples of large countries. Meanwhile, there is a lack of studies on regional income inequality in small countries, so the question of whether a small country is characterised by regional income inequal- ity remains open. This research aims to examine the level of regional income inequality in Lithuania. We hy- pothesised that Lithuania has a high level of regional income inequality and this is one of the causes of the high income inequality in the whole country. To estimate regional income inequality, we used the most com- mon measures: Gini coefficient, decile ratio, and the coefficient of variation. The analysis was performed at level 3 of the Nomenclature of Territorial Units for Statistics (NUTS), according to which Lithuania is divided into 10 administrative counties. For this research, we chose the indicators illustrating income per capita on various levels, i.e., gross domestic product (GDP) per capita, average disposable household income per cap- ita, and gross hourly wages, as the various types of income can be used. For the estimation of GDP per cap- ita and average disposable household income, we analysed the data provided by the Lithuanian Department of Statistics (Statistics Lithuania) for 2014–2017. Due to a lack of data to estimate gross hourly wages, we examined the statistical data from the Lithuanian Department of Statistics for 2014. The results show that the hypothesis has not been confirmed. According to the research results, there is a small distribution of in- come between different regions of a small economy, although the level of economic development of different regions differs. The study findings are important not only from an academic perspective for identifying the causes of income inequality and raising questions for further research, but also for regional economic policy makers. The obtained results show that decisions related to a more equal distribution of income in Lithuania as a small country are determined not only by the specificity of its regions but also by the general trends of the country.
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Starting from 2014 the European Union countries, the United States of America and some other states im- posed economic sanctions against Russia, resulting in diversification of trade ties away from western part- ners (“pivot to the East” strategy). The mixed findings of recent sanctions literature related to their effective- ness and measures to overcome the negative consequences, has necessitated the examination of these issues for the case of anti-Russian economic sanctions. We use various macroeconomic data along with indicators of digital development and financial inclusion. The methodology comprises a combination of graphical, com- parative, and correlation analysis. The analysis of external sector data shows that economic sanctions had substantial negative impact on trade and foreign direct investment with main senders. At the same time, the “pivot to the East” after 2014 has not been implemented yet as much as expected. To overcome negative im- pact of sanctions and to promote economic growth, the current diversification of ties should be accompanied by other measures, centred on digital development, digital financial technologies, and financial inclusion. We assess linkages between digital development and wealth inequality and we found that in most countries with moderate wealth inequality, including Russia, the digital transformation could bring more benefits in terms of economic growth, than in countries with lower wealth inequality. The overall study allowed us to examine digital policy implications to overcome the negative effects of sanctions in Russia. The obtained results will contribute to addressing the problem of optimisation of Russia’s behaviour as a target country that is the subject of future research.
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Author Grigoriy B. Korovin,Rapid digitalisation of the economy introduces network forms of coordination of industrial enterprises activities. A network approach to cooperation in the industrial sector requires the development of theoretical foundations and methodological approaches, considering the specificity of industrial territories. Th e stud y use s variou s methods : structura l an d dynamic analysis of regional statistics and open data of industrial enterprises and regional network structures, expert commentary, development analysis of network structures in the industrial regions. The research identified possible network changes in the traditional industrial business models. Due to such changes, partners and consumers are involved in the product creation, customisation, individualisation, and price determination based on network information services. A new typology includes four types of structures corresponding to four quadrants of a two-dimensional matrix, divided by the strategic goals of merging organisations and the network structure functions. The selected types include associations of the producers of homogeneous products; partnerships and alliances; local networks; supply and value chains. The empirical part of the paper involves the identification and analysis of four types of network structures in the Sverdlovsk region and an assessment of their significance to the economy. Finally, the study assessed the development dynamics of regional network structures using particular indicators. The results can be used for developing the concept of network economy, creating tools for managing the network industry, and establishing a new industrial policy that takes into account a network aspect of cooperation.
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Recently, the topic of regional development has become particularly relevant since regions are gaining more and more autonomy in solving their socio-economic issues. This transformation results in the concern of how to find potential partners for building a regional development strategy, sharing resources and competencies. In this context, it is advisable to consider universities as a significant potential partner. In particular, it is necessary to analyse their role and capabilities in creating a regional strategy, the most relevant forms of interaction, and indicators for assessing the effectiveness of the universities’ integration to address the challenges of regional development. We applied the expert interview method and discussed the problem with representatives of 28 Russian universities who occupy top managerial positions and have an expert opinion on key issues. Based on the analysis of empirical material, we identified three main roles of universities in regional development: a project initiator, a partner, and a source of human and analytical resources. During the resource assessment, we determined that funding is the only scarce resource for universities, while all other resources and competencies can be quickly mobilised if necessary. The most effective mechanisms for integrating universities to address regional challenges are a consortium of universities and the organisation of project offices with the participation of government and business representatives. The main research result was the identification of quantitative and qualitative criteria characterising the universities’ involvement in solving socio-economic issues of regional development, as well as indicators, which are necessary for their definition. Additionally, we discovered a previously unidentified information and administration group among the quantitative criteria and defined the main stages of assessing the effectiveness of such integration. In regards to the considered issue, a promising direction for further research would be a comparative analysis of the effectiveness of the universities’ integration to address social and economic challenges in different regions of the Russian Federation.
SOCIO-DEMOGRAPHIC POTENTIAL OF REGIONAL DEVELOPMENT
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Starting from the late 20th century, the modern era is called the «era of migration» thereby emphasising the important role of migration processes in world development. Russian regions active participants in the migration exchange and the largest centres of both immigration and emigration. Accordingly, among Russian researchers population migration is considered a relevant and acute issue. The article aims to re- view scientific research in the field of population migration conducted in Russia from 2000 to 2019. The the- oretical framework of the research includes publications covering the topic of modern migration processes. The practical basis is articles published on the website elibrary.ru. The study was conducted using bibliomet- ric analysis, which is one of the most useful tools for studying the information flow. The total sample size was 18,174 scientific articles. We revealed that most of the publications (36%) belong to the field of economics and economic sciences. The dynamics of publication activity on migration demonstrated an upward trend. The number of articles in the period 2000–2019 increased by 27 times. The leaders in the number of publications on migration topics are the journals «Migration Law» (245 articles) and «Journal of Economy and Entrepreneurship» (173 publications). Among scientific organisations, the undisputed leader in this list is the Russian Presidential Academy of National Economy and Public Administration, which published 637 works on migration in total, and Moscow State University with 572 papers. S. V. Ryazantsev presented the largest number of publications in the examined period. The results of this study can be used to improve the information support of specialists involved in studying population migration and strengthen scientific communication between researchers in various fields.
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The problem of age discrimination in the labour sector has become even more relevant, as the increase in the retirement age and the COVID-19 pandemic in Russia reinforce ageism. The article aims to assess the incidence of age discrimination in the labour market of the Sverdlovsk Region and examine employers’ behaviour towards people nearing retirement. The mixed methodology includes quantitative (analysis of statistics, questionnaire survey, content analysis) and qualitative (in-depth interviews with employers) research methods. While in the 1990s age discrimination was evident and expressed in the exclusion of older workers from the employment sector, now age discrimination is latent and has different manifestations. The results showed that people aged over 45 have less job opportunities in the labour market. Thus, most of them choose to maintain employment. This strategy, however, does not protect against other discriminatory practices such as displacement to less paid positions, reduced pay rate, etc. This situation leads to the decrease in the average wage of workers aged 50-55 by approximately 25%. We can conclude that employers did not change their behaviour and continue using discriminatory practices to maximise the return on human capital, shifting the risks of pension reform to employees. The government is trying to smooth over the differences between the effectiveness of the regional economic system, focused on maximising the use of regional human resources, and the effectiveness of individual organisations by protecting labour rights and promoting the employment of people nearing retirement. However, the government support measures mainly focus on training or retraining of people aged over 50, while employers lack economic incentives to reconsider their attitude towards older workers. Thus, we recommend developing governmental mechanisms for encouraging employers to change their personnel policy concerning employees aged over 50.
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Author Elena S. Vakulenko,One of the most important characteristics of the labour market is labour mobility that allows assessing the economic efficienc y o f labour . A comparativ e analysi s i s necessar y fo r determinin g th e degre e o f mobility . I n term s o f spatia l and sectoral characteristics, the paper assesses the degree and dynamics of mobility in the Russian labour market based on previously published studies, as well as the authors’ findings. To determine the degree of mobility, the research uses various approaches, applying both direct (mobility costs, transition matrices) and indirect indicators (structural unemployment, wage differentiation, unemployment rate, gross regional product (GRP)). The analysis uses the data of the Russia Longitudinal Monitoring Survey — Higher School of Economics (RLMS-HSE) and Federal State Statistic Service (Rosstat) for 2000– 2016. The obtained results demonstrate a relatively low intersectoral and interregional mobility in Russia compared to Organisation for Economic Co-operation and Development (OECD) countries. Low intersectoral mobility may indicate weak exchangeability of the sectors and high mobility costs. The largest number of transitions is observed in trade, where employees do not need any specific knowledge. Generally, other transitions are made between related sectors that require similar knowledge from employees. The lowest intersectoral mobility is characteristic for the education and health sectors. According to the Shorrocks index, in Russia, interregional mobility is lower than intersectoral mobility. Low spatial mobility is explained by high migration costs, including those associated with “poverty traps”, the peculiarity of statistical accounting of migrants and the size of Russian regions. The obtained results are correct for the examined period and the applied criteria. The changes in labour mobility in Russia caused by global digitalisation of the economy and the transition to remote working require a separate study.
INDUSTRY AND INTER-INDUSTRY ASSOCIATIONS
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Nowadays, it is relevant to consider changes in the structure of the fuel and energy balance of industrial regions and the availability of imported fuel and energy resources, especially in the areas that lack energy sources. The ongoing structural shifts in energy consumption systems and the growing uncertainty in energy markets encourage the development of tools for improving the sustainable development of regional energy systems. To refine the theoretical and methodological basis of the study, we defined its conceptual framework, described the difference s betwee n sustainabl e functionin g an d developmen t o f th e energy sector and determined the factors of its regional differentiation and manifestations of the energy crisis. Further, we identified the shortcomings of the existing methods for forecasting the demand for electricity. We paid special attention to quality factors of strategic planning in the region, in particular, the used statistics and documents. Based on the analysis of integrated resource planning (IRP) methodology, our experience in forecasting fuel and energy balances, assessment of sectoral indicators of energy efficiency and energy demand in the region, we proposed a model for predictive and analytical justification of regional programmes for energy development. Such a model significantly increases the information reliability of these programmes’ implementation. Considering organisational tools to support sustainable development, we developed a regional energy management scheme and a mechanism stimulating local energy companies to improve energy efficiency in the consumption sector, enhance regional competition and attract investments in the renewal of fixed assets. The study has practical significance due to recommendations and tools for adjusting regional energy policy based on the coordination of the predicted parameters for various participants in the energy supply process.
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The development and renewal of production technologies are among the key factors determining the competitiveness and sustainable economic growth of companies. At the same time, the spread of advanced manufacturing technologies (AMT), influencing the effectiveness of resource potential, is uneven across Russian regions. The paper focuses on the diverse application patterns of advanced manufacturing technologies in the groups of regions, classified depending on key parameters of their economic development, i.e., the structure of production and employment as well as gross regional product (GRP) per capita adjusted for price factor. To examine the relationship between socio-economic parameters of regional development and technological portfolios of local enterprises, we analysed the indices of technological diversity and self- reliance of enterprises. For that purpose, we used the data from the national statistical survey on the development and use of AMT by enterprises for 2011– 2018. The conducted analysis indicates that independent technology development is not a priority for most Russian regions. Moreover, all types of regions (except for some agricultural ones) demonstrate the priority of technology imports. However, the demand for national R&D results is gradually growing and increases opportunities for research and educational institutions to enter the technology market, provided there are sustainable mechanisms for transferring the knowledge to the real economy. Successful examples include the developed regions relying on the extractive and manufacturing industries as well as the areas where leading entities managed to link scientific and industrial components. Future studies can focus on testing the obtained results using classifications based on principles other than the similarity of socio-economic conditions of regions.
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One of the most important causes of partial or complete destruction of property is fire. Social and economic damage from fire substantially reduces the regional macroeconomic indicators. Thus, a complete and objective assessment of fire damage is a necessity. We hypothesise that a comprehensive assessment of fire damage significantly depends on the characteristics of areas and facilities, where the fire occurred. Such comprehensive assessment should necessarily include the ranking of urban areas and consider the characteristics of facilities located there. We noted that areas and facilities with heterogeneous functions are characterised by increased fire damage (partial or complete). We applied analytical research methods, as well as classification, typology and ranking methods. Based on a detailed analysis of domestic and foreign experience in the field of zoning and ranking of areas, we created a classification of facilities and areas for the comprehensive assessment of fir e damage . A s a result , we constructed a map of Ekaterinburg areas, taking into account the issues of the comprehensive assessment of fire damage. On the example of Ekaterinburg, we analysed atypical conjunctions of facilities and areas and proposed an index for adjusting complex fire damage. We suggested a simple and versatile approach to ranking areas that considers the heterogeneity of facilities and areas. Additionally, we analysed this phenomenon and its impact on the comprehensive assessment of fire damage. A promising direction for further research is the examination of the comprehensive assessment of fire damage in rural areas.
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International theoretical and empirical studies have shown that regional development and economic growth largely depend on spatial and non-spatial proximity of regions, which generates knowledge spillovers. We developed a methodological approach to measuring and visualising spatial and structural-technological proximity affecting regional knowledge spillovers. Moreover, we tested the techniques of the cartographic visualisation of the proximity of Russian regions. Further, we analysed foreign and domestic approaches to studying spatial and non-spatial proximity and obtained new results. We described the stages constituting a methodology for the quantitative assessment of different types of regional proximity. Additionally, we proposed a method for constructing a typology of regions based on the coefficients of the non-spatial proximity matrix, calculated according to the indicator “gross value added” for 15 sectors of the Russian National Classifier of Economic Activities (OKVED) for Russian regions. Using the data for the Novosibirsk region in 2005 and 2016, we applied methodological techniques for measuring and visualising geographical and structural-technological proximity (STB) of a region in relation to other constituent entities of the Russian Federation. The Novosibirsk region is located in the middle of the country and has a diversified structure of economic activities and science. For this particular region, there has been an increase in the likelihood of the emergence of knowledge spillover channels with various European regions of Russia and some regions of the Urals and the Far East. Proximity matrices can be used in econometric studies to test hypotheses about the impact of different forms of proximity on regional economic growth. Recommendations to enhance knowledge spillover coincide with the proposals to support the areas of innovative development stated in The Strategy of Spatial Development of the Russian Federation for the period until 2025.
Urban Economics
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The SARS-CoV-2 pandemic has led to the widespread introduction of the principles of social isolation and drastically reduced the right of residents to use the city, limiting mobility and meetings. The article examines whether the temporarily limited mobility due to the SARS-CoV-2 pandemic, reducing the quality of life in the city, also reduces its attractiveness. The city, assessed from the viewpoint of its attractiveness, aims to strengthen its appeal. We assume that the attractiveness of the city and assessment of the quality of life in the city are based on similar features. We sought answers to the following research questions. (1) Is it really possible to notice a decrease in the city’s attractiveness due to the pandemic? (2) Does a respondent’s opinion (belief) about the city as a living environment influence the assessment of the city in which the respondent lives? (3) Do factors describing the mobility of city inhabitants influence the quality of life? We revealed that the demographic characteristics of residents are to varying degrees related to the assessment of the attractiveness of the city. Gender of respondents has no significant influence on the assessment of the city and current place of residence, while age and educational level of education are important for this assessment. The older is the respondent, the lower is their assessment of the city. Simultaneously, the higher is the educational level, the higher is the propensity to assess the attractiveness of the city. The analysis of mobility revealed that not all examined mobility elements will equally improve the quality of life (measured by the assessment of the place of residence). Out of the 7 factors identified in the study, only 3 turned out to be statistically significant. Therefore, it can be concluded that these factors improve the quality of life of city residents.
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Considering the increasing imbalance in the economic development of urbanised territories of Kazakhstan, examining the impact of urbanisation on the economic growth of cities to ensure their innovative development is necessary. This study analyses trends and problems of the impact of urbanisation on urban development on the example of Kazakhstan. The article focuses on urban development and related processes that will open new opportunities for Kazakhstan to accelerate economic growth and improve living standards. The works of local researchers do not show the relationship between the levels of urban and economic development in different regions of the country and the impact of urbanisation on this process. To supplement previous studies, we used statistical and comparative analysis methods. Moreover, we compared the current state of urban development in Kazakhstan with the situation in other countries. The obtained empirical estimates confirm the correlation between the level of urbanisation of a country and its economic growth. Without a holistic approach to urban management, it is difficult to establish the directions, principles and development strategies for Kazakhstan’s cities and megacities to follow. Thus, we identified the main directions for economic growth of urbanised territories of Kazakhstan: proper control and management of urbanisation, flexible management, development of appropriate policies for different regions of the country, use of best practices in developing urban strategies. We recommend considering the analysis of urban management in the broader context, and not only as a task of implementing regional economic growth. For that purpose, it is necessary to create an integrated multi-level management system that provides feedback and preventive management, classifying the consequences of urban policy in the regions and the effects of achieving the country’s strategic development goals. Therefore, the Kazakh government should at least review its functions and responsibilities and look for solutions to achieve a tangible synergistic effect.
INNOVATIVE CAPACITY OF A REGION
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The study aims to develop a differentiate d approac h t o th e elaboratio n o f innovativ e developmen t strategie s o f Russian regions, which allows an effective implementation of innovative paradigms, considering the specificity of scientific and technical, innovative, and production and technological potential of regions. The analysis of international experience of innovative development illustrates the need to consider regional features when creating innovative strategies. We examined the dynamics of the innovative potential of Russian regions over the past decade. We hypothesise that an effective targeted innovative strategy of a region should be closely related to its socio-economic strategy, relying on the most relevant scientific, technological, and educational potential. We identified 4 main criteria for differentiating innovative strategies. These criteria application increases the effectiveness of innovation policies. These factors include the relationship of regional innovative strategies with relevant socio- economic strategies, the innovation and technological specialisation of the regions, regional needs for innovative transformations for the future, and forms of innovation activity. A comparative analysis of innovation and production capabilities and needs of Russian regions showed significant differences in the number of people employed in research and development, technological innovation costs, manufacturing output and other indicators. Based on the analysis, we identified top 15 regions, which are the most innovation-ready. The study used comparative analysis methods, economic and statistical methods, and forecasting methods. We proposed an algorithm for using a differentiated approach for strategizing regional innovative development. Finally, we concluded that a differentiated approach to the development and implementation of innovative development strategies allows improving the efficiency and targeting of state innovation policy through more efficient use of available resources and opportunities to strengthen the sustainability of regional communities. The article is intended for experts in the field of theory and practise of managing the innovative development of regions.
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Russian economy is characterised by raw materials dependence, the impossibility of using the latest achievements of the sixth technological mode, rapid digital development, internationalisation of scientific and technological progress, the impact of technological shifts on structural transformations. These aspects lead to the implementation of an innovative scenario for the development of regions in the context of neo-industrial challenges, which is necessary for identifying and consolidating the most effective tools for innovating the modern Russian economy. This problem primarily affects regional economic systems with a set of innovative economic entities. To solve the problem, we analysed and generalised the scientific-theoretical, methodological framework, and practical aspects of regional innovative development, taking into account current trends and key parameters of neo-industrialisation. Considering neo-industrialisation in regional economic systems, the innovative development path increasingly depends on such critical parameters as human capital, intersectoral interaction, and technological modernisation processes. The paper presents scientific and theoretical substantiation of the possibilities of regional innovative development in the context of current trends of neo-industrialisation. Research methodology and tools include systemic, categorical, structural, and functional analysis, conceptual modelling. We identified and described objective factors, trends, and problems of ensuring the long-term regional innovative development. Further, we defined and classified the current trends of innovative development of the regional economy, as well as substantiated the key parameters of neo-industrialisation. Then, we created a model of regional innovative development. To explain the discrepancies between the actual and the desired level of the development of neo-industrialisation parameters, we presented an algorithm that allows identifying bottlenecks, forming a roadmap, and implementing a mechanism for strengthening the potential of regional innovative development. Additionally, we specified key aspects of the innovative development path of regions, considering the current state of the real sector. The obtained theoretical results can be used for forecasting the most important economic challenges and identifying strategic factors for the regional innovative development in the context of neo-industrialisation.
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Author Maxim V. Vlasov,Small and medium-sized enterprises are the drivers of economic development of any macro-system. In the context of technological paradigm shift, successful operation of small and medium-sized enterprises largely depends on innovations. Therefore, it is advisable to examine innovative behaviour of these firms. The study aims to analyse the innovative behaviour of small and medium-sized enterprises of an industrial region, assess the funding of innovation activities, and identify factors that determine the innovation policy of small and medium-sized firms. Additionally, the paper suggests how state and municipal authorities can stimulate the innovative development of small and medium-sized enterprises. The initial data were the results of a survey of representatives of small and medium-sized enterprises in a Russian industrial region, which was conducted from May to September 2019 in the Sverdlovsk region. I interviewed 157 small and medium-sized enterprise managers in the Sverdlovsk region from various sectors of economic activity. The applied methods include in-depth interviews with managers, the statistical analysis method, and the logical systematic approach. The conducted research allowed identifying the features of the innovative behaviour of small and medium-sized firms in the Sverdlovsk region. Based on the analysis of the reasons for the low innovation activity of small and medium-sized enterprises, I developed recommendations for its improvement in the Sverdlovsk region. To solve the problem of low innovation activity in an industrial region, it is necessary for state and municipal authorities to stimulate innovative behaviour of small and medium-sized firms. Managers of small and medium-sized enterprises can use the obtained results to increase their activity. State and municipal authorities can apply the findings to develop programmes stimulating innovative behaviour of small and medium-sized enterprises.
REGIONAL FINANCE
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Author Oleg M. Turygin,An increase in fixed capital investments is necessary for accelerating the growth of the Russian regions and the economy as a whole and requires increased financial resources. The paper considers the possibility of increasing financial resources of regional companies by attracting additional debt financing. The proposed methodology determines the potential demand for debt financing, considering the performance requirements ensuring financial stability. The paper analyses how an increase in debt financing influences credit rating of a company as well as the cost of debt financing attraction. Unlike other works, this paper considers the debt capital structure of companies. Additionally, the study proposes a methodology for identifying changes in the coefficient of interest coverage (that affects credit rating of companies) depending on various debt financing structures. The application of the developed methodology allowed determining the potential increase in debt financing, which is necessary for the investment of regional companies. Debt financing can increase by 1.7 times (43.5 trillion roubles) in Russia in general, 1.4 times in the Sverdlovsk region, 2 times in the Tyumen region, and 1.6 times in the Chelyabinsk region. There are no opportunities to increase debt financing in the Kurgan region. A reduction in interest rates on loans to non-financial companies allows expanding debt financing of the Russian economy without lowering the credit rating. The study results can be used to determine the potential demand for debt financing from companies, industries, regions and the economy as a whole. Further research may consider the validity of the policy of high interest rates on loans to non-financial companies for achieving high economic growth.
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The involvement of Islamic Microfinance Institutions (IMFI) in building the national economy is paramount to help the poor. However, provision of access and services to lower-level households can potentially conflict with the sustainability of the institutions. This study analyses the social outreach factors that determine financial and social efficiencies. To reach the set goal and solve this issue, we used mixed methodology combining quantitative (statistical instruments, such as Data Envelopment Analysis (DEA) and multivariate analysis) and qualitative approaches (interviews to clarify or deepen the existing information). The assessment of the dependent variables is influenced by proxies of depth, breadth, length, scope, and cost. The results showed that the average loan instalments and the number of offices and branches significantly influence financial and social efficiency. The age of the institution only has an effect on financial efficiency. Simultaneously, profit orientation, the amount and type of financing and the amount and type of savings only have a high impact on social efficiency, whereas the impact of fund collection and cost per borrower is insignificant. There is a strong positive correlation between the two dependent variables. The influence of independent variables on financial and social efficiency is significant with the coefficient of determination 23.1274 % and 53.2941 %, respectively.
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Author Leyla B. Mokhnatkina,The use of fiscal instruments for regulating territorial development has both positive and negative macroeconomic effects related to the withdrawal of revenue from more economically developed regions. Therefore, using the Pareto principle, this paper assesses the negative effects of budgetary reallocation. This study considers inter-budgetary reallocation as an annually recurring four-stage process of regional budgets reproduction. The article analyses the firs t stag e o f th e process , namely , the creation of resource allocation base. A hypothesis has been tested to examine whether the centralisation of tax revenues in the federal budget and, consequently, an increase in inter-budgetary reallocation does not reduce, but exacerbates inequality in regions due to their revenue depletion and limited self-development. The study assessed the contribution of federal districts and individual constituent entities of the Russian Federation to the federal budget, withdrawal of regional revenues, and the concentration of territorial revenues to the federal budget. Based on the ranking of regional contributions to federal revenues, I built a Pareto diagram, checking the 80/20 rule for grouped and non-grouped data. Calculations and comparison of the data for 2017 and 2010 confirm numerous negative effects. For example, there is an increase in the withdrawal of regional revenues and a significant concentration of federal revenues for a limited number of regions. Additionally, negative effects include the existence of a direct relationship between regional revenues and the rate of their withdrawal, as well as the predominance of the equalising component over the stimulating one in regional socio-economic development. These effects lead to revenue depletion in the territories and increased centralisation of budgetary resources, contradicting the principles of fiscal federalism. Authorities can use the research results, conclusions and suggestions for managerial decision-making to improve intergovernmental relations in the Russian Federation.