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Factors of Regional Development in Russia: Geography, Human Capital and Regional Policies

Author

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  • Zemtsov, S.

    (Russian Presidential Academy of National Economy and Public Administration, Moscow, Russia)

  • Smelov, Y.

    (Moscow Institute of Physics and Technology, Moscow, Russia)

Abstract

The Russian regions vary significantly in terms of the level and dynamics of social and economic development, which is primarily due to differences in the availability of natural resources. However, a number of regions managed to improve their position relative to the others since 1998, without hydrocarbon reserves: Leningrad, Kaliningrad, Belgorod, Tambov, Kaluga, Rostov regions, etc. The purpose is to identify and summarize the factors of regional development in Russia in 1998-2014, based on the analysis of successful examples and econometric methods. The first nature factors (favourable geographical position, availability of raw materials and agro-climatic conditions) determine development but to realize its potential regional authorities reduced investment risks and used human capital. Since 1998-2004, in addition to the raw materials extracting centres, the regions that actively attracted investments by using the benefi ts of a large market and remaining production assets (Moscow, St. Petersburg, Leningrad, Omsk, Tomsk, Novosibirsk and Khabarovsk regions) were in the lead. In 2005-2008 a number of successful regions (Moscow, St. Petersburg, Tatarstan, Sverdlovsk, Rostov, Novosibirsk, Perm regions) use human capital and technologies of large cities to develop knowledge-intensive services, and attract investors by reducing risks for business (Leningrad, Kaliningrad, Kaluga regions). In the post-crisis period 2009-2014, advantage was given to diversi- fi ed regions with developed agro-industrial complex (Belgorod, Voronezh, Tambov regions), processing industries (Sverdlovsk, Perm, Krasnoyarsk regions), with good institutional conditions (St. Petersburg, Kaluga, Samara regions, Tatarstan). We used the results to propose some recommendations for the regional policy: development of infrastructure, reduction of investment barriers, preservation and attraction of human capital to large cities.

Suggested Citation

  • Zemtsov, S. & Smelov, Y., 2018. "Factors of Regional Development in Russia: Geography, Human Capital and Regional Policies," Journal of the New Economic Association, New Economic Association, vol. 40(4), pages 84-108.
    • Handle: RePEc:nea:journl:y:2018:i:40:p:84-108
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    2. Demidova, O. & Timofeeva, E., 2021. "Spatial aspects of wage curve estimation in Russia," Journal of the New Economic Association, New Economic Association, vol. 51(3), pages 69-101.
    3. Trunin Pavel & Bozhechkova Alexandra & Knobel Alexander & Levashenko Antonina & Koval A. & Milogolov Nikolai & Gromov Vladimir & Zemtsov Tsepan & Tsareva Yulia, 2020. "Monitoring of Russia's Economic Outlook. Trends and Challenges of Socio-economic Development," Monitoring of Russia's Economic Outlook. Trends and Challenges of Socio-Economic Development, Gaidar Institute for Economic Policy, issue 9, pages 1-26, May.
    4. Zemtsov, S., 2020. "Institutions, entrepreneurship, and regional development in Russia," Journal of the New Economic Association, New Economic Association, vol. 46(2), pages 168-180.
    5. B. M. Mukhamediyev & L. S. Spankulova, 2022. "Mutual Influence of Innovation and Human Capital on Regional Growth in Neighboring Countries: The Case of Russia and Kazakhstan," Regional Research of Russia, Springer, vol. 12(3), pages 350-364, September.
    6. Zemtsov, S., 2021. "New technologies and regional development in the modern period," Journal of the New Economic Association, New Economic Association, vol. 51(3), pages 196-207.
    7. Lehmann, Hartmut & Oshchepkov, Aleksey & Silvagni, Maria Giulia, 2020. "Regional Convergence in Russia: Estimating a Neoclassical Growth Model," IZA Discussion Papers 13039, Institute of Labor Economics (IZA).
    8. Dubrovskaya, Yu. & Belonogov, Yu. & Kozonogova, E., 2023. "Evaluation of the effectiveness of administrative-territorial transformations in Russia," Journal of the New Economic Association, New Economic Association, vol. 58(1), pages 89-108.
    9. N. N. Mikheeva, 2021. "Resilience of Russian Regions to Economic Shocks," Studies on Russian Economic Development, Springer, vol. 32(1), pages 68-77, January.
    10. A. S. Mikhaylov & A. A. Mikhaylova & D. V. Hvaley, 2024. "Geography of Research Networks in the South of Russia," Regional Research of Russia, Springer, vol. 14(3), pages 398-409, September.
    11. Nikita Alexandrovich Burakov & Alexander Yakovlevich Rubinstein, 2020. "Theoretical and Applied Aspects of Measuring the Economic Growth Potential of Russian Regions," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 1, pages 24-50.

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    More about this item

    Keywords

    Russian regions; economic-geographical position; market access; entrepreneurial activity; investment risks; agglomeration economies; technological development; innovations; best practices;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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