Transformation of Manufacturing Sector in the Russian Far East in the Context of Economic Shocks

I. P. Glazyrina (), L. M. Faleychik () and I. A. Zabelina ()
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I. P. Glazyrina: Institute of Natural Resources, Ecology and Cryology, Siberian Branch, Russian Academy of Sciences
L. M. Faleychik: Institute of Natural Resources, Ecology and Cryology, Siberian Branch, Russian Academy of Sciences
I. A. Zabelina: Transbaikal State University

Regional Research of Russia, 2025, vol. 15, issue 2, 215-227

Abstract: Abstract The aim of this article is to study the features of the development of the manufacturing sector in Russia’s eastern regions. Is it possible to speak about the significant influence of the “eastern vector” of regional development in this dynamic? The article examines the following aspects of economic processes in the Russia’s eastern regions during the economic shocks of 2020–2021 and 2022–2023: production dynamics, labor productivity dynamics in the manufacturing sector, and dynamics of tax revenues by type of economic activity “Manufacturing” in accordance with OKVED 2. The calculations are performed taking into account the production index. In terms of production volumes, industrialization processes in Russia’s East as a whole in 2017–2023 outpaced the average Russian rate, with the only exception being 2022, although the results varied significantly across regions. In all Far Eastern regions, labor productivity was higher in 2022 than in 2017, but for the type of economic activity “Manufacturing” in 2022, this indicator for in the East was below the Russian average, and in four regions, it decreased compared to 2017. In the context of the current limited supply of labor resources, this creates risks for further development of the sector in the east of the country. Analysis of Russian Federal Tax Service data revealed a very significant increase in tax revenues from the manufacturing sector both in the country as a whole and in the eastern regions in 2023. This is positive overall for the budget, but indicates an increasing tax burden on the industry, which may already have a negative impact on its development and modernization in the medium term. The results may serve as an additional argument in favor of expanding the content of the thesis about Russia’s “turn to the East.” The main content should not be an increase in export–import trade turnover, but rather an increase in the efficiency of regional socioeconomic systems in Asian Russia. That is, the turn to the East should first and foremost become a turn to the East of Russia.

Keywords: manufacturing sector; production dynamics; labor productivity; tax revenues; economic shocks; Far East (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1134/S2079970525600295

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