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

Stepan Zemtsov and Y. Smelov
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Y. Smelov: Moscow Institute of Physics and Technology, Moscow, Russia

Journal of the New Economic Association, 2018, vol. 40, issue 4, 84-108

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.

Keywords: Russian regions; economic-geographical position; market access; entrepreneurial activity; investment risks; agglomeration economies; technological development; innovations; best practices (search for similar items in EconPapers)
JEL-codes: C23 O18 R11 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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