Indicators of economic development in the basis of the characteristics of regional differentiation

Sergey Aivazian, Mikhail Afanasiev () and Alexander Kudrov ()
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Mikhail Afanasiev: Central Economics and Mathematics Institute of the Russian Academy of Sciences, Russia, Moscow;

Applied Econometrics, 2018, vol. 50, 4-22

Abstract: On the example of two directions: «production of goods and services» and «material welfare», the methodology of the analysis of interrelation of different directions of regional development is formed. The novelty of the results is determined by the fact that the direction indicators are based on a common basis, formed from the characteristics of regional differentiation on the basis of theoretically based models. The indicator of each direction, built in the basis, is maximally correlated with the indicator formed on the basis of the corresponding group of indicators. It is shown that for the two directions considered, the basis provides a higher consistency of indexes and ranks of regions than the first main components constructed by groups of indicators. The advantage of the approach is that indicators of different directions based on the basis allow for a general interpretation in terms of differentiation characteristics and allow assessing the change in the level of socio-economic development of the region when these characteristics change. The article presents the results confirming the importance of the impact of technical efficiency on the indicators of regional development and its importance in the indicator in the direction of «material welfare».

Keywords: regional economy; econometric modeling; hypothesis testing; indicators. (search for similar items in EconPapers)
JEL-codes: C12 C51 R15 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (3)

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