SFeDu
of.211, Gorgoko St., 88 
Rostov-on-Don
Russia
344002
+7 (863) 250-59-54
This email address is being protected from spambots. You need JavaScript enabled to view it.
te@sfedu.ru

TERRA ECONOMICUS

Factors of regional differentiation by economic growth rates


TERRA ECONOMICUS, , Vol. 18 (no. 2),

The article deals with the analysis of differences between the Russian regions in the growth rate of gross regional product from 2015 to 2018. As the author argues, the World Bank methodology of identifying and exploiting regional potential is not adapted to the analysis of regional dynamics. The article analyzes these dynamics based on Rosstat statistics on 18 indicators for 85 regions and 41 regions with a high share of manufacturing industry. A positive relationship is identified between the GRP growth rate, the dynamics of investments in fixed assets, and the average living space per person. No statistically significant relationship is identified between the GRP growth rates and the region’s orientation toward increasing exports to nonCIS countries. The degree of influence of urban and institutional factors on the GRP growth rates remains a question. The analysis of data from 85 and 41 regions shows a statistically significant inverse relationship between the GRP growth rates and the share of investments in reconstruction and modernization as a share of total investment in fixed assets. Thus, the choice between demonstrating relatively high GRP growth rates in the short and medium term and solving strategic tasks shows its relevance for the regions. The statistical models discussed in the paper include the wide range of estimated regional parameters. Despite this, the author emphasizes the need for more detailed consideration of regional specifics when looking for reserves to increase the GRP growth rates.
Citation: Dementiev, V. E. (2020). Factors of regional differentiation by economic growth rates. Terra Economicus, 18(2), 6–21. DOI: 10.18522/2073-6606-2020-18-2-6-21


Keywords: gross regional product; subjects of the Russian Federation; economic potential; urbanization; investment; economic growth rates

JEL codes:

References:
  • Aghion, Ph., Akcigit, U., Howitt, P. (2014). What Do We Learn From Schumpeterian Growth Theory? Pp. 515–565 / In: Philippe Aghion, Steven Durlauf (eds.) Handbook of Economic Growth, Vol. 2. Elsevier.
  • Amin, A., Nigel, T. (2000). What kind of economic theory for what kind of economic geography? Antipode, 32, 4–9.
  • Balland, P.-A., Boschma, R., Frenken, K. (2015). Proximity and Innovation: From Statics to Dynamics. Regional Studies, 49 (6), 907–920.
  • Balland, P.-A., Boschma, R., Ravet, J. (2019). Network dynamics in collaborative research in the EU, 2003–2017. European Planning Studies, 27 (9), 1811–1837.
  • Boschma, R., Iammarino, S. (2009). Related variety, trade linkages, and regional growth in Italy. Economic geography, 85 (3), 289–311.
  • Boschma, R., Frenken, K. (2006). Why is economic geography not an evolutionary science? Towards an evolutionary economic geography. Journal of Economic Geography, (6), 273–302.
  • Boschma, R., Martin, R. (2007). Editorial: Constructing an evolutionary economic geography. Journal of Economic Geography, (7), 537–548
  • Brülhart, М., Sbergami, F. (2009). Agglomeration and growth: Cross-country evidence // Journal of Urban Economics, 65 (1), 48–63.
  • Duranton, G., Puga, D. (2004). Micro-foundations of urban agglomeration economies, pp. 2063–2117 / In: J. V. Henderson, J. F. Thisse (eds.) Handbook of Regional and Urban Economics, Vol. 4. Amsterdam: Elsevier.
  • Ezcurra, R., Rodríguez-Pose, A. (2013). Does Economic Globalization Affect Regional Inequality? A Cross-Country Analysis. CEPR Discussion Paper № DP9557.
  • Fay, M., Opal, C. (2000). Urbanization Without Growth: A Not-So-Uncommon Phenomenon. Washington, DC: World Bank.
  • Fedorova, E., Chernikova, L., Musienko, S. (2019). Assessment of the Regional Government’s Efficiency. Economy of Region, 15 (2), 350–362. DOI: 10.17059/2019-2-4. (In Russian.)
  • Frick, S. A., Rodríguez-Pose, A. (2016). Average city size and economic growth. Cambridge Journal of Regions, Economy and Society, 9 (2), 301–318.
  • Frick, S. A., Rodríguez-Pose, A. (2018). Change in Urban Concentration and Economic Growth. CEPR Discussion Paper № DP12566.
  • Fujita, M., Krugman, P., Venables, F. J. (2000). The Spatial Economy: Cities, Regions and International Trade. Cambrige: The MIT Press.
  • Glaeser, E. L. (2014). A world of cities: The causes and consequences of urbanization in poorer countries. Journal of the European Economic Association, 12 (5), 1154–1199.
  • Gollin, D., Jedwab, R., Vollrath, D. (2016). Urbanization with and without Industrialization. Journal of Economic Growth, 21 (1), 35–70
  • Golova, I. M., Sukhovey, A. F., Nikulina, N. L. (2017). Problems in Increasing Innovative Sustainability of Regional Development. R-Economy, 3 (1), 59–67. DOI: 10.15826/recon.2017.3.1.007. (In Russian.)
  • Grebenkin, I. (2020) Trends in Industrial Specialization and Development Dynamics in the Russian Regions. Economy of Region, 16, 69–83. DOI: 10.17059/2020-1-6. (In Russian.)
  • Helpman, E., Trajtenberg, M. (1998). A Time to Sow and a Time to Reap: Growth Based on General Purpose Technologies, pp. 55–83 / In: Helpman Elhanan (ed.) General Purpose Technologies and Economic Growth. Cambrigde, MA: MIT Press.
  • Jedwab, R., Vollrath, D. (2015). Urbanization without growth in historical perspective. Explorations in Economic History, 58, 1–21.
  • Kartaev, P. S., Polunin, K. E. (2019). Does the investment climate rating influence the economic development of the region? Voprosy Ekonomiki, (5), 90–102. (In Russian).
  • Kramin, T. V., Klimanova, A. R. (2019). Development of digital infrastructure in the Russian regions. Terra Economicus, 17 (2), 60–76. (In Russian.)
  • Krugman, P. (1991a). Geography and Trade. Cambridge, Massachusetts: MIT Press.
  • Krugman, P. (1991b). Increasing returns and economic geography. Journal of Political Economy, 99 (3), 483–499.
  • Kuznetsova, O. V. (2016). Regional policy in Russia: debatable problems of present stage. Regional’nye issledovaniya (Regional Research), (4), 10–16. (In Russian.)
  • Makarov, V. L., Aivazyan, S. H., Afanasiev, M. Yu., Bakhtizin, A. R., Nanavyan, A. M. (2014). The Estimation of the Regions’ Efficiency of the Russian Federation Including the Intellectual Capital, the Characteristics of Readiness for Innovation, Level of Well-Being, and Quality of Life. Economy of Region, (4), 9–30. (In Russian.)
  • Martin, R. (2000). Institutional Approaches in Economic Geography, pp. 77–94 / In: Sheppard E., Barnes T. (eds.) A Companion to Economic Geography. Oxford: Blackwell.
  • Nikitaeva, A. Y. (2017). Regional Institutional Structure in the Context of Innovative Industry Development. Journal of Institutional Studies, 9 (1), 134–149. DOI: 10.17835/20766297.2017.9.1.134-149. (In Russian.)
  • Nureev, R. M., Simakovsky, S. A. (2017). Comparative analysis of innovation activity of Russian regions. Terra Economicus, 15 (1), 130–147. DOI: 10.23683/2073-6606-201715-1-130-147. (In Russian.)
  • Okrepilov, V. V., Kuznetsov, S. V., Mezhevich, N. M., Sviridenko, M. V. (2019). Urbanization processes in the context of spatial development patterns of municipalities in the zone of influence of megacities. Economic and Social Changes: Facts, Trends, Forecast, 12 (4), 42–52. DOI: 10.15838/esc.2019.4.64.3. (In Russian.)
  • Piskun, E., Khokhlov, V. (2019). Economic development of the Russian Federation’s regions: factor-cluster analysis. Economy of Region, 15 (2), 363–376. DOI: 10.17059/2019-2-5. (In Russian.)
  • Rastvortseva, S. (2020). Innovative Path of the Regional Economy’s Departure from the Previous Path-Dependent Development Trajectory. Economy of Region, 16 (1), 28–42. DOI: 10.17059/2020-1-3. (In Russian.)
  • Rice, P., Venables, A. J. (2004). Spatial determinants of productivity: Analysis for the regions of Great Britain. CEPR Discussion Paper 4527.
  • Rumyantsev, A. A. (2018). Research and Innovation Activity in the Region as a Driver of Its Sustainable Economic Development. Economic and Social Changes: Facts, Trends, Forecast, 11 (2), 84–99. DOI: 10.15838/esc.2018.2.56.6. (In Russian.)
  • World Bank (2009). Reshaping Economic Geography. World Development Report 2009. The World Bank, 410 p.
  • World Bank (2018). Re-Mapping Opportunity: Making Best Use of the Economic Potential of Russia’s Regions. World Bank, Washington, DC.
  • Zubarevich, N. V. (2017). Development of the Russian Space: Barriers and Opportunities for Regional Policy. The world of new economy, 11 (2), 46–57. (In Russian.)
Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606