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TERRA ECONOMICUS

STRUCTURAL CHANGE IN REGIONAL ECONOMY AND LOCAL MARKETS DEVELOPMENT

TERRA ECONOMICUS, , Vol. 17 (no. 2),

This article presents findings of a study on the relationships between local markets development and regional economic structure at the South of Russia. The mechanism through which market forces affect the structural change in regional economy and its spatial organization is described; specific drivers that foster the development of related processes are identified. Regional economic structure is analyzed through the lens of its influence on regional economic space. Market forces are seen as the factors which shape economic system, tighten up the regional economic space into peculiar «nodes» combining the parts of the system into coherent matrix structure. Such «centers of attraction» are represented by the wholesale markets emerging within the large corporate structures, enhancing overall economic activity and strengthening business environment in the region. The paper deals with economic activities of such industry leaders of the South of Russia as Rostselmash PJSC, the largest domestic producer of agricultural equipment for domestic and global markets, and Rostvertol JSC, the leading manufacturer and exporter of military and civilian helicopters. Theoretical approaches to the study of structural change in regional economy are systematized; the key approaches are identified as the following ones: territorial, resource, informational and process. The research findings suggest that structural change in regional economy supports economic environment as the integrated system, boosts growth cycles, and synchronizes interactions between market participants.
Citation: Ovchinnikov, V. N., Ketova, N. P., and Druzhinin, A. G. (2019). Structural change in regional economy and local markets development. Terra Economicus, 17(2), 77–95. DOI: 10.23683/2073-6606-2019-17-2-77-95


Keywords: region; economic space; markets; spatial organization of the economy; market attractiveness; spatial differentiation; clusters of innovations; South of Russia

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Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606