Arhive: #2 2021
NEW RESEARCH INTO REGIONAL ECONOMY PROBLEMS
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In 2014, the United States, the European Union (EU) countries and some other states have imposed economic sanctions against Russia. The overcoming of sanctions requires an understanding of their effectiveness. Thus, we aimed to identify factors of the effectiveness of economic sanctions by reviewing the literature that considers sanctions as a tool for transforming the current national policies. The applied methodology of the systematic literature review (SLR) includes the following stages: 1) determining a basic sample of publications based on a keyword search in Web of Science, Scopus, Russian Science Citation Index, SSRN, EBSCO, Ideas/RePec, Google Scholar, Cambridge University Press, Routledge, De Gruyter JSTOR, Springer, Taylor & Francis; 2) identifying a representative sample based on the authors’ criteria (type of publication, language, character, content and context); 3) synthesising the representative sample; 4) reporting the research results. A method of comparative and graphical analysis was used to present the findings. The analysis of relevant literature allowed us to conclude that economic sanctions are more effective if 1) sanction costs for a target country are higher than for a sender, including those occurring as a result of regional inequality; 2) sanctions are designed as a short-term measure; 3) sanctions are multilateral and imposed by international institutes, including through regional trade agreements; 4) sanctions are targeted at democratic regimes. Moreover, the most preferred type of sanction — targeted (smart) sanctions — are less effective in achieving their goals than traditional comprehensive ones. Further review studies may focus on targeted economic sanctions (first and foremost in Russia) and include publications, analysing case studies of individual countries and industries.
REGIONAL SOCIAL AND ECONOMIC PROBLEMS
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The research aims to assess the impact of information and communication technology (ICT) on economic growth in different regions of Kazakhstan. A few basic complex methods, such as systematisation of statistical data and regression analysis, conducted using the STATA software package, were used to analyse the relationship of indicators in different periods. Based on data for the period 2007–2018 obtained from the World Bank, the International Telecommunication Union and statistical yearbook of Kazakhstan, we assess how ICT, expressed by such indicators as Internet access in organisations, the number of computers and fixed telephones, influences economic growth. Our analysis revealed differences in the speed of implementation and development of ICT depending on the region, meaning that the least developed territories still lag in the number of Internet users. We have concluded that since 2014, the country’s currency has weakened due to the decrease in the cost of oil and consequent economic decline; mobile devices are increasingly used, reducing the demand for fixed telephones; computers in organisations are affecting economic growth in more developed regions since 2014, although the negative effect of Internet access is growing, as the model shows. The obtained results can used for strategy development to compare economic growth in regions with low, medium, and high development rates.
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Author Dina Kh. Krasnoselskaya,In the normative agenda of European countries, polycentricity is considered a desirable spatial form for encouraging regional competitiveness and territorial cohesion. Since the collapse of the Soviet Union, Russian regions have undergone various reforms aimed at reducing tremendous social-economic differentiation, but the results of applied strategic plans were moderate. According to the existing Spatial Development Strategy of the Russian Federation, polycentric patterns are encouraged to increase the quality of economic space and its connectivity. Using statistical data from 2017 for 271 Russian municipalities, the research addresses the impact of socio-economic determinants and road infrastructure on the spatial structure. The Republic of Bashkortostan and six adjacent regions served as a case study. Conducted regression analysis identified key variables that influence polycentricity, upon which global and local Moran’s indexes were calculated to reveal the potential for intraregional cooperation. Research findings showed that polycentricity in its morphologic nature is positively determined by economic variables (namely, the value of shipped goods, performed works and services) and social infrastructure (the number of doctors per 10 000 inhabitants) while spatial autocorrelation is weak both within and beyond regional boundaries. The results may be used for formulating regional policies, infrastructure programmes, and spatial planning.
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The economic problems of the digital age require resolution at all stages, including the meso-level. The article presents results of a study conducted across Russian regions to determine quantitative indicators of the impact of information and communication resources on their economic development. The research aims to assess this effect from the perspective of a systematic approach. To this end, a typology of economic activities is compiled, a meso-level model of influence is developed, then the model is evaluated. A hypothesis concerning the multidirectional effect of external information and communication resources on the gross regional product is advanced and confirmed. From a theoretical perspective, the research takes a spatio-temporal approach derived from the system paradigm. In order to obtain unbiased estimates of the elasticity values, we evaluated the approximation of the meso-level model using the non-regularized least squares method. The results of the study can be used to determine regional strategies for the development of information and communication resources. The significanc e o f th e obtaine d result s ca n be enhanced by increasing the sample size of the official state statistics used as source data. The work concludes by recommending the development and retention of labour resources in the field of information and communication in order to optimise regional economic development by maximising the obtained indicators.
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The sustainable development of regional enterprises is negatively affected by uncertainty arising from external factors of the current economic crisis. Due to resultant inconsistencies in their interaction, these entities may experience reduced inno- vativeness. Therefore, it becomes necessary to derive synergies from the diversified regional resources of industrial enterprises, science and education. The research aims to develop an approach to the high-tech transformation of regional enterprises based on innovative factors of the 5th and 6th technological waves by integrating analogue and digital interactive process models. The proposed method for investigating enterprise interactivity uses quality indicators for regulating the consistency and direction of their functional subsystems. An evaluation of the developed model revealed new possibilities for improving the quality of man- agement in the emerging high-tech intersectoral regional complex (HTIRC) according to a transformation process sustainability criterion. For this purpose, relevant subsystems are defined along with additional change management quality indicators and functions. In order to apply the method, practical recommendations concerning the regulatory structure of the complex are pro- vided. The developed models are useful when making decisions regarding critically unstable organisations. Conditions regulating the transition from the 3rd and 4th to the 5th and 6th technological waves were considered using the corresponding statistical indicators. In order to accelerate this transition process, the amplitude indicators of certain functions and subsystems can be adjusted accordingly. The applied models and methods are effective for analysing and regulating the sustainability of innovative transformations in HTIRC enterprises. Continuing research will focus on developing this method by assessing the coordination of functional effects in terms of the synergy between technologies and organisational methods combining analogue and digital approaches (e.g., vector factor analysis, step- and generalised functions).
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Cross-border development is significantly influenced by global events, such as 1990s transformations, when different inland areas across the world became borderlands. Further, due to 2014 geopolitical changes, the Russian Federation had to establish a new institutional framework regulating the border regional development. The research aims to assess the impact of strategic factors on socio-economic development of these regions. For that purpose, we analysed 47 of 50 Russian border entities divided into two groups of old and new (established after the collapse of the USSR in 1991) border regions. We hypothesise that the factors considered as strategic in these territories manifest differently in old and new border regions. Empirical data, obtained from the Federal State Statistics Service and Unified Interdepartmental Statistical Information System, cover the period from 2000 to 2018. The simulation was conducted using the statistical package Stata 14. We analysed five groups of factors (transport infra- structure, small business, foreign trade, tourism, ecology) as well as corresponding indicators. Gross regional product per capita in comparable prices of 2018 was considered as a dependent variable. Then, we assessed three models explaining the impact of the examined factors on old and new border regions individually and in combination. For each model, pooled regression, as well as random and fixed effects models were constructed. Conducted simulations revealed that the fixed effects models best describe the analysed data. The research results confirmed the hypothesis, showing that transport infrastructure and tourism are more important for new border regions, while the factors of ecology, small business and foreign trade have a greater impact on the development of old borderlands.
SOCIO-DEMOGRAPHIC POTENTIAL OF REGIONAL DEVELOPMENT
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The Khanty-Mansi Autonomous Okrug — Yugra (KhMAO-Yugra) is classifie d a s on e o f Russia’ s norther n resource- extracting regions, the contribution of human capital to whose gross regional product (GRP) is typically negligible. In this context, the study investigated the impact of higher and vocational education on the development of the region’s economy. The objective of the research was to identify the direction and influence of human capital — in particular, higher and vocational education — on the economic development of KhMAO-Yugra. Despite the resource-extracting character of this region’s economy, its development can still be influenced by the quality of its human capital, as well as by institutional traps in the higher and vocational education system. Economic-statistical research methods — including multiple correlation and regression analysis — were used in combination with an abstract-logical approach. Along with an examination of the regional higher and vocational education system, the influence of its dynamic and structural factors on socio-economic development indicators is revealed. Predictions of GRP and average monthly salaries in KhMAO-Yugra until 2030 are offered. Institutional traps inherent in the region’s current higher and vocational education system are described. Factors identified as having the most significant positive impact include the number of postgraduate students, as well as bachelor-, specialist-, and masters-level graduates. The most harmful institutional traps are shown to be departmental affiliatio n, applica nt preference s, minim um tuiti on fee and low unemployment rate. If current trends in the region’s education and scientific systems are maintained, stagnation of its economy is likely to occur, resulting in a reduction of the region’s attractiveness to young professionals. The findings of the study can be applied when making changes to regional development programmes. More research is needed to determine economic development priorities in terms of human capital or resource extraction.
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Universities are increasingly seen as drivers of regional economic development. In this research, we undertook an analysis of the short-term academic mobility of university students as a factor in the internationalisation of higher education. The number of foreign students (International Student Ratio) attracted from across the world is an important metric in all global university rankings. As a result, universities aiming to improve their positions in the global educational market are actively implementing programmes to attract foreign students. Short-term educational programmes of academic mobility are characterised by a high level of flexibility in terms of management, thus being capable of meeting a wide range of needs and interests of potential students. In July 2019, we conducted a survey among Indian students (n = 65) participating in short-term international academic mobility programmes at the Ural Federal University (Ekaterinburg, Russia). The main goal of the empirical research was to investigate students’ motivational structure of participation in academic mobility and the role of such programmes in the implementation of students’ life plans. In addition, barriers to the effective implementation of short-term educational programmes at universities were revealed. According to the research results, Russian education is a status characteristic for Indian students, which allows them to gain important socio-cultural and communicative competencies, as well as to build professional trajectories in a foreign country. The respondents expressed willingness to continue their education in Russia as part of Master’s degree educational programmes. Among the main barriers and challenges, the respondents mentioned poor knowledge of the Russian language and financial difficulties.
INDUSTRY AND INTER-INDUSTRY ASSOCIATIONS
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Growing interest of national economies in global value chains (GVCs) and the lack of micro-level research brought us to study the integration of countries in GVCs at the enterprise level (using the example of the pharmaceutical industry). We examine the situation in the Republic of Kazakhstan that is beginning to integrate into GVCs. Results of a questionnaire survey of the country’s pharmaceutical companies are considered along with public statistics. We developed a methodology to analyse the participation of a national entity in GVCs at the micro-level (including the enterprise participation in GVCs) and assess the performance of Kazakh pharmaceutical companies. The research is based on export and import data. A hypothesis on the participation of national pharmaceutical enterprises was partially confirmed: several surveyed companies participate in generic drugs GVCs at the production level, thus the value added is low. Features of pioneering entry into pharmaceutical global value chains for countries lacking such integration experience were demonstrated on a specific example. The obtained results can be used by countries starting the process of integration into pharmaceutical GVCs, as well as by Kazakhstan when developing the pharmaceutical industry.
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Any government strives to stimulate export activity in high-tech sectors of its economy. Surprisingly, there are few empirical papers on the determinants of high-tech export to date. This study analyses the economies of Central and Eastern Europe (CEE) and the Commonwealth of Independent States (CIS) due to the differences they experienced in the transition period. To this end, we used the Balassa index, which is based on the concept of revealed comparative advantages. The research examines 73 groups of products from the automotive, chemical, mechanical engineering, electronics and electrical engineering industries in 27 countries from 1995 to 2018. Principal component analysis helped generate an indicator of comparative advantage of hightech industries for each country in each year. It is revealed that CEE countries, as well as the Baltic countries, have achieved significant success in the development of high-tech sectors of the economy, while the CIS countries have shown practically no progress in this direction. The article tests hypotheses on the impact of resources, foreign trade, macroeconomy and innovation on export activity in the country. The following factors stimulate the export growth in high-tech industries of the studied countries: level of wages and resource prices, openness of the economy to foreign trade; tax rate; unemployment rate; quality of human capital. We did not find empirical evidence of the positive impact of inflation, inflows of direct foreign investment, and the level of research and development (R&D) costs on the volume of high-tech export of the examined economies.
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In order to improve the energy efficiency in industrialised countries, energy demand management technologies are being introduced. In Russia, energy consumption is characterised by high natural gas usage. A decrease in demand volatility leads to the reduction of energy costs for industrial consumers. These factors indicate the feasibility of electricity and natural gas demand management. Simultaneously, Russian regions significantly differ in terms of the prospects for introducing integrated demand management. To examine the problem, we used statistical analysis, mathematical modelling and a method for constructing perceptual maps. Parameters of electricity and natural gas demand management in Russian regions were examined. As a result, we developed a methodology to assess the possibility of implementing energy demand management in various entities. This method is based on a system of indicators considering absolute and relative density of regions’ electricity and natural gas demand, industrial energy consumption, and natural gas used to generate electricity. The analysis of the relevant indicators allowed us to construct energy demand volatility maps and a matrix indicating the effectiveness of proposed management tools. The research findings can be used when developing targeted programmes for energy demand management at the regional and federal levels.
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Major ecological problems encourage regional authorities to find a balance between the consumption of natural resources and the preservation of the environment. To this end, we assessed environmental management in three Russian regions (the Ural, Siberian and Far Eastern Federal Districts) in the period 1990–2018 using temporal variability analysis of ecological and economic indicators. Based on the spatial and temporal variability and time series analysis, we developed a methodology for examining the use of natural resources and occurring violations. Temporal variability of environmental and economic indicators was visualised for each type of natural resources (atmospheric, water, forest and land). Additionally, the proposed method allowed us to identify a trend towards balanced environmental management and restoration of regional natural resources over a long period. The variability of environmental and economic indicators of 27 constituent entities of the Russian Federation was analysed based on graphic material. Further, four main groups of these indicators (stable, unstable, homogeneous, and heterogeneous ones) were identified. This typology can be used to determine the leading and outsider regions in terms of the balanced environmental management, indicating its general trend (positive or negative one). Overall, satisfactory and positive environmental management dominate in the examined districts. Simultaneously, negative environmental management (predominance of resource use over their restoration) leads to the adoption of drastic measures to remedy the situation. The obtained results may be useful for developing a methodology to assess environmental and economic indicators of balanced environmental management in regions.
Urban Economics
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Urban studies examine the development of industrial cities regarding the well-being of citizens, their needs and quality of life. Due to a new understanding of industrial cities as towns for people, the role and place of man in the urban space should be reconsidered. We developed a model for structuring the industrial city space based on a retrospective analysis of urban development. Further, we revealed the characteristics of shrinking cities and determined how the harmonisation of the urban environment influences the society. The interaction between physical and social spaces was analysed from the perspective of object- subject relations, enriching the understanding of the categories of place and entity (residential area, public space, etc.), as well as allowing citizens to deliberately transform their environment. Using content analysis, we confirmed that the harmonisation of the urban environment (physical space) stabilises social relations, since the population, government and business should reach a consensus to achieve the city’s goal and satisfy their own needs and interests. The results of the urban space analysis reveal the disparities between historical and modern buildings, natural and urbanised areas, industrial and residential city areas, etc., that should be eliminated. The directions of harmonisation of the urban space (revitalisation of industrial facilities and marginal areas, housing renovation) are proposed. We tested different approaches on the example of cities in the Chelyabinsk region by analysing their development stages, signs of decline, and urban characteristics. We are continuing to study the development of industrial cities. Public authorities and local governments can use the obtained results to elaborate urban development strategies, as well as implement the national projects «Housing and Urban Environment» and «Demography» at the regional and municipal levels.
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Since the dissolution of the USSR and advent of market relations, small and medium-sized Russian cities have experienced many economic and social problems due to their peripheral status. At the same time, they form the main framework for the settlement of the northern territories. The research aims to reveal the importance of small and medium-sized cities in the set- tlement system of 13 regions of the Russian North by studying their demographic dynamics. We examined the hypothesis that the demographic sustainability of these cities depends on the time of their formation. A proposed methodology for assessing the demographic sustainability of cities is based on five groups: demographically sustainable, relatively sustainable, unsustainable, critically unsustainable, instability. Four periods of the formation of small and medium-sized cities are defined: colonisation of the Russian North (1584–1917); industrialisation and urbanisation of the northern territories (1918–1959); from coercion to encouragement — northern romance (1960–1989); from settlement to abandonment — depopulation (1990–2020). For each period, the cities were assessed in terms of their demographic sustainability. The current sustainability of the cities was shown to be dependent on the period of their formation. Compared with the rest of Russia, the structure of settlements in the North revealed both similarities (concentration of the population in large cities) and differences (the proportion of the population living in small and medium-sized cities is higher, but lower in rural areas). Future research will focus on developing a methodology for assessing the «saturation» of small and medium-sized cities in the Russian North.
INTERNATIONAL ECONOMIC ACTIVITY
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Export success is one of the key aspect of economic growth of a country because it is the principle means of specialising, developing economies of scale, accessing new technologies and attracting foreign investment. For this reason, the significance of this topic has encouraged scientists to investigate the main factors that play a part in the development and application of successful export strategies. This article analyses the export success of Colombian businesses from the behaviour of variables at the business and sectoral levels. The research aims to characterise the relevant conditions affecting the entry of small and medium-sized enterprises (SMEs) into the foreign market, which can be useful for business owners who are in the process of internationalisation; they can also be considered as an instrument for developing policies promoting exports from Colombia. A multilevel model is estimated for a sample of Colombian businesses. We examined international experience, export commitment and export strategy as business factors that positively influence export success, as well as export assistance programmes, networks, tariff legislation, sector size and innovation as sectoral factors. It was concluded that the export destination, the country’s conditions and regulations should be examined before the beginning of the export process. However, Colombian exporters usually choose international destinations without such an analysis. In addition, government support through programmes and tariff legislation leads to greater business dynamism, favours entry into new markets and helps compensate negative results of international destinations.
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Political instability is often considered to have a negative influence on economic growth. Hence, the study aims to examine whether instability of the political environment (measured by the political stability in- dex and duration of the chief executive in the office) significantly influences economic growth in Central and Eastern European (CEE) countries. The methodology used is a fixed effects model for panel data analysis where the dependent variable is the real growth of gross domestic product (GDP) per capita. The data covers the period from 2006 to 2016 for 13 CEE countries. Additionally, the study considered other macroeconomic variables, such as investment, inflation, human capital, trade openness, etc. The research findings indicate that the political stability index has a positive effect on economic growth, as expected and predicted in the literature. However, the indicator of the years the chief executive has been in the office has shown a negative effect. This effect appears to be weakly significant only for the second variable. These findings allowed us to conclude that the political stability index positively influences economic growth, while the years the chief executive stays in the office has a negative effect. Frequent changes in the cabinet can actually have a positive impact in transition countries characterised by corruption, meaning that the long stay of a chief executive in the office can lead to power abuse.
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Nowadays, international companies are looking for new ways to improve their performance. Most studies on this issue do not consider the social environment and established corporate culture that have a direct impact on economic indicators. Based on econometric data, this research confirms the impact of cultural indicators on the economic activities of international companies in Russia, Germany and Japan, representing national, European and Asian cultures. The quantitative Denison’s method allowed us to examine the corporate culture and assign numerical values to its characteristics. The impact of cultural indicators (engagement, consistency, adaptability, mission) was assessed by means of correlation and regression analysis. According to the data obtained, even though employee engagement is shown to be the most important indicator in general, the performance and economic indicators of various enterprises are affected differently. For Russian companies, the most significant cultural indicators determining the overall performance are adaptability and engagement, as the mission indicator has the least impact. The factors of mission and engagement are of utmost importance for German organisations, while consistency and adaptability are less relevant. The economic performance in Japanese companies is strongly influenced by their mission and consistency, and the indicators of engagement and adaptability are secondary. However, the conducted research does not cover the whole variety of interactions between international companies. Future interdisciplinary studies should examine how cultural indicators influence the economic activity of companies of countries in different world regions. In the context of globalisation and localisation processes, international companies need to adapt their activities, taking into account the local cultural values.
AGRICULTURAL AND FOOD MARKET: NEW VECTOR OF DEVELOPMENT
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Over the last decades, the agri-food sector has been involved in a substantial process of internationalisation. For many agri-food firms, internationalisation has become a significant element of competitiveness and an essential condition for their survival and success in spite of the possible initial difficulties in competing and organising activities in uncertain and complex environments. These challenges concern mainly agri-food small and medium enterprises (SMEs) that, due to their size, are in a more vulnerable position in relation to trade barriers compared to larger firms. Based on these premises, we investigated the structure of the agrifood exports of a small region by exploring its characteristics and evolution over time. While this research is relevant per sé, it can also explain the macroeconomic dynamics of the whole area and determine the further development of agri-food exports of a small region to non-EU countries. The analysis concentrates on exports to extra-EU countries from agri-food firms located in the province of Foggia (the south-east of Italy), a small area characterised by a large presence of SMEs and micro firms that are mainly devoted to agricultural production and food processing. To answer the research question, we employ the social network analysis, a method increasingly used for analysing international trade patterns. The use of this methodology has allowed us to conduct an in-depth analysis of firms and countries that occupy a strategic position in the network. These actors are crucial for the network’s survival since their removal could make the network more fragmented and disconnected. The analysis has been conducted in a dynamic way by exploring the characteristics of the network in 2014–2019, allowing us to assess its evolution over time. The results show that the structural properties of the analysed network have remarkably enhanced over time. However, the current network structure is not satisfactory yet since it relies, for the most part, on the connections among a few leading firms and a limited number of destination countries.
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Author Sergey N. Polbitsyn,Analysis of numerous works on the historical development of agri-food production and the organisation of agri-food systems convincingly demonstrates that each development stage was organised to successfully meet the challenges of civilisation. Based on the analysis results, I hypothesise that there have been five historical stages of development of agri-food systems. Nowadays, both national and regional agri-food systems are increasingly introducing the institutions of the innovative agri-food system 6.0. The agri-food system 6.0 is based on a new perception of food security focused on identifying and satisfying the individual needs rather than meeting the basic food demand of the population. Numerous researchers have repeatedly noted that only entrepreneurs can consider specific and varying needs of different population groups, as, unlike large agricultural businesses, they have the flexibility to organise production and offer consumers the demanded products. An analysis of works on the historical development of agri-food systems in different countries, as well as a detailed study of agri-food production trends of the Russian agri-food system confirm the hypothesis. The research results determine the role of rural entrepreneurial ecosystems in the development of both the national agri-food system and rural areas. The obtained findings can help examine the role of individual actors in ensuring the sustainable development of the rural entrepreneurial ecosystem, as well as identify universal and specific factors influencing its development.
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Nowadays, investment in national agri-food systems is of significant interest, as it is a necessary condition for implementing large-scale technological innovations which are crucial not only for this particular system, but for Russian economy in general. The research aims to study how investments affect the competitiveness of the Russian agri-food system and to propose a conceptual framework for strategic agribusiness management at the regional and national levels. We hypothesise that competitiveness indicators, including cost intensity of production, depend on the investment in agribusiness. Due to low access to credit, agricultural companies look for alternative investment strategies, one of which is investment subsidies in commodity production. The hypothesis was tested by examining a sample of organisations engaged in agri-food production. The sample includes profitable companies investing in production development. Sample analysis confirme d th e initia l hypothesi s that investments into technological modernisation of production significantly influenc e it s competitiveness . Whe n developin g a strategy for increasing the competitiveness of agri-food systems in terms of investment provision, it is advisable to consider not only quantitative (amount of support), but also structural aspects of support. In particular, we suggest the government to introduce the practice of providing investment subsidies to agricultural commodity producers with participation in the recipients’ capital to support their development. The research results can be used in further studies concerning the management of the agribusiness competitiveness.
REGIONAL FINANCE
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For several years, the development of regions of Eastern Poland has been supported with funds from the European Union (EU) special programme entitled «Eastern Poland». Its goal is to stimulate the economic and social development of this part of Poland, which is one of the least developed regions in the EU. These funds are aimed at reducing development disproportions between Eastern Poland and other regions. Therefore, the question about the effects of applying financial support from public funds of these regions is justified. Our research attempts not only to find an answer to this question, but also to fill the research gap explaining the role of some factors in the reduction of regional disparities in rural areas. The paper aims to identify the factors and effects of public investment activity in rural municipalities in Eastern Poland against all rural municipalities in the country. The research hypothesis assumes that there is a positive relation between the level of municipal investment activity and the share of the municipalities’ tax revenue in the overall budget revenue, and that the level of municipal investment activity depends on geographical location of rural areas. The research covered all rural municipalities in five regions of Eastern Poland, while data have been obtained from Central Statistical Office in Poland for the period 2004–2017. A percentage share of investment spending of rural municipalities in the overall budget expenditure was used as a measure of investment activity. The study used a comparative analysis method, descriptive statistics (mean, coefficient of variation), as well as one-factor analysis of variance and linear correlation. The research has shown that investment activity in rural municipalities in Eastern Poland during the analysed period was slightly lower than in the country as a whole, with remarkable differentiation among particular municipalities. There is no single factor defining the investment capacities of local authorities, however, relatively big differences in the receipt of EU funds by rural municipalities in Eastern Poland. The findings show that the proximity to highly developed regions did not energise the economic growth of rural municipalities in Eastern Poland to the same extent as the proximity to larger cities. The research results can be used by public sector institutions in rural development programmes, including measures to improve the effectiveness of the financial investments from public funds to increase the quality of life of rural inhabitants.
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Author Mariya A. Pechenskaya-Polishchuk,The need to stimulate economic development using policy instruments to enhance the tax potential of regions and municipalities is supported by key postulates of economic theory and successful examples of international practice. It is hypothesised that decentralising the distribution of tax revenues contributes to an increase in regional tax potential. In order to examine this problem, methods of grouping, sampling, generalisation and comparison are used. Methodological aspects of the study of tax potential at the sub-national level are presented. The scope of both centralisation and decentralisation processes affecting tax revenues in the Russian Federation for 2006–2018 is considered. The proportion of tax revenues transferred to the federal budget and collected at the regional level is investigated on the example of six Russian regional groupings. An expansion of the group of regions whose federal taxes are more than 50 % along with a 10 % increase in transfers to the federal budget led to greater centralisation. Out of the considered regions, 53 % transferred over 30 % of their tax potential to the federal level. It was revealed that regions whose tax centralisation is approximately 15–30 % have the best budget figures (debt burden of less than 30 %, budget deficit of less than 4%, 7–9 % budget revenue growth). Continuing research aims to develop measures for increasing regional tax potential. The obtained findings can be used to substantiate and implement regulatory legal acts concerning budget and tax issues.
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As opposed to international studies, Russian scientists apply multifactorial models with specific coefficients to determine the rent for public lands. This research analyses and summarises the existing theoretical and normative approaches to coefficient calculation covered by domestic literature. We examine two types of coefficients: permitted use of land (K) and categories of land users (K 1 ). Based on the property valuation theory (income and comparative approaches), we demonstrated problems and disadvantages of the methods currently used to determine K and K 1 coefficients. Then, using the economic contract theory, we identified market and non-market (hybrid and hierarchical) regulation mechanisms and distinguished K and K 1 coefficients. Institutional differences of these indicators were theoretically substantiated. As a result, we developed economic algorithms for calculating market (K) and regulatory (K 1 ) coefficients that take into account both types of permitted use of land (for K) and categories of land users (for K 1 ) by considering preferences and restrictions in the field. The elaborated methodology was tested by performing complex calculations, which allowed us to obtain the values of K and K 1 coefficients for 18 local councils located in Pervomaysky District of Altai Krai for 112 types of permitted use of land. Proposed methodological recommendations can be applied for developing municipal programmes in Russia and abroad to increase the effectiveness and transparency of public land rent.
For the 50th anniversary of the Institute of Economics of the Ural Branch of RAS
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New global challenges such as COVID-19 pandemic, strengthening of protectionism, production technologies development, digitalisation and energy transition, require reinterpretation of regions’ foreign economic activity (FEA). In this context, the research aims to identify and classify development factors of such activity in regions described in the international scientific literature. We analysed works obtained from international (Scopus and Web of Science) and Russian (Elibrary.ru, journal websites) databases using the search terms “regional foreign economic activity”, “regional export”, “global challenges”, “export support”, “foreign investments”, etc. 143 Russian- and English-language articles and books published in the period 1980–2021 were chosen. Selected works, focused on Russian federal districts and regions, as well as advanced and emerging countries, describe various approaches to examining the specificity and development patterns of world regions. Based on the data, we performed structural analysis of foreign economic activity factors using the method of multi-parameter classification. The revealed factors were compared and divided into homogeneous groups with multilevel structures (macro-groups — groups — subgroups — individual factors). After analysing the variety of approaches, we identified five macro-groups of factors: 1) global challenges and partner country factors; 2) resource, industrial, transport and infrastructure potential; 3) organisational factors (finances, specialists’ skills, business community); 4) investment, innovation and image potential; 5) state support of foreign economic activity. The proposed classification considers the development of global, national, regional entities, as well as FEA participants and individuals, taking into account both direct and indirect factors. The research findings can be used for developing short-, medium- and long-term approaches, models and forecasts of regions’ foreign economic activity.
Errata
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In the article “Comprehensive Forecast of Demand for Inter-regional Rail Freight Transport” by Alexander A. Shirov, Natalia N. Sapova, Elena S. Uzyakova, and Rafael M. Uzyakov, which appeared on pages 1–15 of the 1, 2021 issue, Vol. 17, the Acknowledgments section was omitted. In the online version of the paper the following text of the Acknowledgments section was added: Acknowledgments The article has been prepared with the support of a grant in the form of a subsidy for large scientific projects in priority areas of scientific and technological development in the framework of the subprogramme “Basic research for long-term development and ensuring the competitiveness of society and the state” of the state programme «Scientific and Technological Development of the Russian Federation», the project “Social and Economic Development of Asiatic Russia on The Base of The Synergy of Transport Accessibility, Systemic Knowledge about Natural Resource Potential and Expanding Space of Interregional Interactions”, the agreement No. 075-15-2020-804 with the Ministry of Science and Higher Education of the Russian Federation (internal grant No. 13.1902.21.0016). This error does not affect the conclusions of the paper. The article has been corrected online.