Volume 2, Issue 3 (September 2016)


The Editor-in-chief of ‘R-Economy’ Journal, Research Supervisor of Institute of Economics of the Ural Branch of the Russian Academy of Sciences Alexander Ivanovich Tatarkin passed away aged 71 on the 5th of August. In 1972, Alexander Ivanovich graduates from Sverdlovsk Law Institute to continue there his scientific career. In 1987, he takes over the position of Deputy Research Director in the Institute of Economics of the Ural Branch of the Academy of Sciences of USSR. In 1991, he wins directorial elections to become the head of the Institute for next 25 years. Alexander Tatarkin, the Academician of the Russian Academy of Sciences, was one of prominent Russian scholars of regional economy, leader of fundamental economic science in the Ural region. The Ural scientific school of regional competitiveness, which has obtained governmental support since 2006, was founded under Tatarkin’s supervision. His studies of regional and territorial management, self-development of regional social and economic systems, as well as the formation of the sustainable social and economic concept of the development of Russia and the Urals are well-known. Alexander Tatarkin contributed hugely to the creation of a scientific system of the management of regional industrial complex restructuration, based on socially oriented model. In Ekaterinburg, many of studies, headed by Tatarkin, led to the restructuration and improvement of social and economic activities in big enterprises. The main results of research became a basis for a number of legislative acts contributing to the legal fortification of renewed regions’ and territorial units’ status. He invented and implemented the methodology of the formation of innovative territories in the Ural region. Alexander Tatarkin took part in the creation of the concept, programs and research works on technopolis’ and technoparks’ formation that made it possible to implement measures aimed at the preservation and modernization of the hi-tech sectors of the economy in Sverdlovsk region. A.I. Tatarkin made a major contribution to the development of relations with international organizations and scientific schools, e.g. concerning bilateral projects, experience exchanges, research of both European and worldwide practices of regional management and its use in Russia. A.I. Tatarkin actively participated in training of young researchers and was a Member of the Expert Council at the Russian Foundation for Humanities, a Member of State Commission for Academic Degrees and Titles (economic sciences), the Chairman of three scientific councils of the Institute of Economics of the Ural Branch of the Russian Academy of Sciences, Honorary Doctor of Economics and Professor of a number of Russian and foreign universities. Alexander Tatarkin combined his studies with social initiatives. He was repeatedly elected as the Chairman of the Public Chamber of Ekaterinburg, as well as a Member of the Expert Council of the State Duma for federal structure and local government issues, the Council of the Administration of Ekaterinburg, the Coordinating Council for strategic development of the head of the Ekaterinburg Administration, the Economic Council of the Governor of Sverdlovsk Region, the Council on the regional economy of the Ministry of Economic Development of the Russian Federation; the Member of Scientific Advisory Board of the Ministry of Natural Resources; the Board of the Chamber of Commerce of the Russian Federation and Ural Chamber of Commerce; the Council for Industry and Innovation Development Administration of Ekaterinburg. Numerous honours and awards are the result of active scientific and social activities of Mr. Tatarkin. For the assessment of the regional problems of management and control areas of the Ural region, he was awarded the Gold Medal Exhibition of Economic Achievements (1989), an international medal ‘Torch of Birmingham’ for the promotion of reforms in Russia (1994), was awarded the title ‘Honoured Worker of Science’ (1996). At the end of 1999, he becomes a laureate of the Russian Government Award as the head of the team of researchers, in 2002 wins Kosygin Prize for a series of papers on the reform of the Russian economy, in 2009 wins Prize of RAS Corresponding Member M. Sergeev for the best work in the field of regional economy. In 2006, he was awarded a medal ‘For Service to the city of Ekaterinburg’ and the title ‘Great Mind of the 21’s Century due to significance accomplishment within Mastery of Scientific Achievements’. For his great contribution to the development of the city of Ekaterinburg, in 2008, Tatarkin was awarded the title ‘Honorary Citizen of the city of Ekaterinburg. The Editorial Board are deeply saddened by the passing of Alexander Ivanovich Tatarkin and express deepest condolences to his friends, family and colleagues. It is an irreparable loss for the scientific community. Let his soul rest in peace.

The editorial board of the Journal ‘R-Economy’

A. I. Tatarkin, V. V. Balashenko, V. G. Loginov, M. N. Ignatyeva

Pages: 270278
Authors:  A. I. Tatarkin, V. V. Balashenko, V. G. Loginov — Institute of Economics of the Ural Branch of RAS (Ekaterinburg, Russian Federation), M. N. Ignatyeva — Institute of Economics of the Ural Branch of RAS (Ekaterinburg, Russian Federation), Ural State Mining University (Ekaterinburg, Russian Federation)
DOI:  https://dx.doi.org/10.15826/recon.2016.2.3.024

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This article examines a pressing issue of assessing the investment attractiveness of renewable resources in underdeveloped Northern and Arctic territories that have a huge untapped natural resource potential. The subject of the study is the economic interactions that occur during the development of natural resource potential. The goal of this study is to develop the methodological toolkit for assessing the investment attractiveness for businesses and government authorities at various levels. At the pre-investment stage of development projects, we identified typical landscapes for zoning of the territory and assessed them for each type of renewable natural resources. Based on an analysis of existing approaches to natural resource zoning, the authors propose to identify three types of landscapes, including those that are attractive in terms of investment, those that are attractive in terms of investment with certain limitations, and those that are unattractive for investment. The study has confirmed the hypothesis that the selection of the most valuable natural resources expands the opportunities for their economic use. The investment attractiveness is determined by favorable geographical location, development of regional infrastructure, natural potential viewed as a priority object. The authors have provided the rationale for the need to valuate the natural resource potential of landscape areas within the boundaries of an assessed territory for the purposes of their ranking based on establishing the investment attractiveness. The limitations may be imposed by the low level of infrastructure development prerequisites, insufficient sustainability of landscapes to anthropogenic influences, export of raw materials for processing outside the territory, etc. The authors have substantiated the list of conditions that require the introduction of correction coefficients to the value indicators of natural resource potential in landscape areas. The main findings of the study are presented in the form of landscape zoning of the territory and methodological toolkit for assessing the investment attractiveness tested in Berezovsky Municipal District of Khanty-Mansi Autonomous Okrug—Yugra.

Keywords: investment, investment attractiveness, Northern and Arctic territories, natural resource potential, renewable natural resources, landscape areas, economic valuation, income-based approach, zoning, methodological recommendations

A. A. Akayev, Yu. R. Ichkitidze, A. I. Sarygulov, V. N. Sokolov

Pages: 279289
Authors:  A. A. Akayev — Lomonosov Moscow State University (Moscow, Russian Federation), Yu. R. Ichkitidze — National Research University Higher School of Economics (St. Petersburg, Russian Federation), A. I. Sarygulov — St. Petersburg State University of Architecture and Civil Engineering (St. Petersburg, Russian Federation), V. N. Sokolov — St. Petersburg State University of Economics (St. Petersburg, Russian Federation)
DOI: https://dx.doi.org/10.15826/recon.2016.2.3.025

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The evolution of socio-economic systems is non-linear, it includes both the periods of smooth changes and subsequent abrupt transformational leaps. The overall structure of new prospects opens as early as at the stage of emerging evolutionary processes, and their forecast requires to analyze the historical premises and risks that are closely associated with the change of public attitudes. With the collapse of the Soviet Union, the newly independent states went through a transformational and evolutionary development stage that led them from a regional economy (since they actually had been the regions) to the national economy, while the countries in Central and Eastern Europe experienced a dramatic drift towards the European Union. This paper examines the results of almost 25-year-long transformation of these countries. The new states that emerged following the collapse of the Soviet Union went through three types of transformation. First, there were transformations on the ideological level. The transformations of the second type were purely economic. The third type can be described as institutional (including structural and financial) transformation. It has been demonstrated that one of the important reasons for modest economic performance in the post-Soviet space was the fact that the new states ignored and did not use the principles of regional policy and regional modernization in their state-building practice. A characteristic feature in the socio-economic evolution of Eastern Europe after 1990 was a sharply emphasized process of stratification and social differentiation occurring against the backdrop of insufficiently strong middle class and the polarization of income levels in different regions. The growing polarization of income levels in different regions represents the dominant trend of rising economic inequality.

Keywords: regional development, economic inequality, integrated modernization, economic transformation, new states, clustering, institutional reforms, social difierentiation, middle class

A. A. Kuklin, S. E. Shipitsyna, K. S. Naslunga

Pages: 290302
Authors:  A. A. Kuklin — Institute of Economics of the Ural Branch of RAS (Ekaterinburg, Russian Federation), Ural Federal University named after the first President of Russia B. N. Yeltsin (Ekaterinburg, Russian Federation), S. E. Shipitsyna — Perm State National Research University (Perm, Russian Federation), K. S. Naslunga — Institute of Economics of the Ural Branch of RAS (Ekaterinburg, Russian Federation), Ural Federal University named after the first President of Russia B. N. Yeltsin (Ekaterinburg, Russian Federation)
DOI: https://dx.doi.org/10.15826/recon.2016.2.3.026

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The article deals with theoretical and economic aspects of the “security” category and draws a distinction between philosophical, sociological, and economic approaches to the concept of social security. From the perspective of a system approach, the authors define the place of the region’s social security in ensuring national security. The article describes the theoretical content of the «social security» category and provides the authors’ specification for such terms as «social risks,» «danger,» and «threat.» The authors offer methodological tools to evaluate the region’s social security based on a complex assessment of the region’s socioeconomic and budget-financing indicators to identify the risks (deviations) and factors of inefficient financing. The proposed methodological approach is based on identifying the dependencies between the social and financial security of the region. The following indicators reflecting the social security level in the territory of residence were selected as estimated indicators: the region’s consolidated budget income and expenses, gross domestic product growth rates, natural population growth ratio, unemployment level, the share of the population with income below the subsistence minimum. This approach was tested by the example of the Perm Territory and Sverdlovsk Region revealing the regularities as well as favorable and unfavorable periods for the region’s social security. The obtained estimated indicators are ranked depending on the growth (fall) time lag, resilience, and sensitivity to budget financing. The assessment results show that the Perm Territory has been entering a deep recession in terms of national security since 2012. Similar tendencies are demonstrated by the Sverdlovsk Region; however, in view of the apparent diversity and dominant influence of the Perm Territory and the Sverdlovsk Region on the socioeconomic development of the Privolzhsky and Ural Federal Districts, respectively, the provided comparison is of scientific and practical interest.

Keywords: risks, threats, social security, budget financing, consolidated budget, natural population growth ratio, gross domestic product, unemployment

O. A. Romanova, V. Ye. Strovsky

Pages: 303313
Authors:  O. A. Romanova — Institute of Economics of the Ural Branch of RAS (Ekaterinburg, Russian Federation), V. Ye. Strovsky — Ural State Mining University (Ekaterinburg, Russian Federation)
DOI: https://dx.doi.org/10.15826/recon.2016.2.3.027

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The article notes that the emergence of such a phenomenon as the interdependence of security and development, the so-called security-development nexus, becomes a determinant during the development of strategic documents at all hierarchical levels.

It gives relevance to the search for methodological solutions that would on a strategic level take into account any potential threats to economic security, and on a tactical level provide for pragmatic actions that are not in conflict with the strategic development vector of business entities. The authors identify the instability factors that pose a real threat to economic security. They substantiate the expediency of forming a new model of the national economy development with a focal point on new industrialization. The article factors in the most important trends in the development of the global economy that determine the strategic vector of enhancing the economic security in Russia. It is ascertained that in the conditions of new industrialization, the intellectual core of the high-tech economy sector is formed by convergent technologies (NBICS technologies). The authors offer a methodological approach to the economic assessment of managerial decisions in the context of uncertainty. They also identify methodological principles that must be taken into account in developing a modern methodology for the economic assessment of business decisions. The principles include forming a preferred reality, or the so-called “vision of the future,” the priority of network solutions as the basis for the formation of new markets; mass customization and individualization of demands, principal changes in the profile of competences that ensure competitiveness on the labor market, use of the ideology of inclusive development and impact investment that creates common values. The proposed methodology is based on the optimum combination of traditional methods used for the economic assessment of managerial decisions with the method of real options and reflexive assessments with regard to entropy as a measure of uncertainty. The proposed methodological approach has been tested in respect of the Ural mining and metallurgical complex.

Keywords: economic security, economic assessment in the context of uncertainty, reflexive approach and regard for entropy in the assessment of managerial decisions, new industrialization, convergent technologies, methodology, real options

E. V. Popov, M. V. Vlasov, A. Yu. Shishkina, A. V. Yakimova

Pages: 314323
Authors:  E. V. Popov — Institute of Economics of the Ural Branch of RAS (Ekaterinburg, Russian Federation), M. V. Vlasov — Institute of Economics of the Ural Branch of RAS (Ekaterinburg, Russian Federation), Ural Federal University named after the first President of Russia B. N. Yeltsin (Ekaterinburg, Russian Federation), A. Yu. Shishkina — Scientific and Production Association of Automatics Named after the Academician N. A. Semikhatov (Yekaterinburg, Russian Federation), A. V. Yakimova — Ural Federal University named after the first President of Russia B. N. Yeltsin (Ekaterinburg, Russian Federation)
DOI: https://dx.doi.org/10.15826/recon.2016.2.3.028

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This article discusses the processes of knowledge generation in the enterprises of the military-industrial sector that are the leaders of innovation in the region. The purpose of the study is to develop a methodology based on using the resource potential to improve the efficiency of knowledge generation in the instrument- making enterprises of the military-industrial sector. The authors conducted a system analysis of knowledge generation in one of the enterprises of the military-industrial sector that led to the conclusion on the chaotic character of knowledge generation in such enterprises and its insufficient provision with institutions. The authors proposed a method for designing a knowledge generation system in the enterprises of the regional military-industrial sector by taking into account the means and capabilities of the enterprise in the implementation of intellectual activities. The developed method is based on defining the horizontal resource potential of knowledge generation and allows to determine the potential use of resources at each stage of the product lifecycle. The comparison of actual and theoretical values of horizontal resource potential will allow to adjust the allocation of share held by each of the resources within the stage, and thereby optimize the implementation of tasks at a particular stage. The proposed tools were tested in 2015 in one of the enterprises of the regional military-industrial sector. The methodological tools used in this study include such methods as the expert assessment, mathematical statistics and institutional analysis. The proposed methodology and empirical results have been used as a basis to develop the institutional spiral of knowledge generation during the performance of state order in the enterprises of the military-industrial sector, the implementation of which will help to reduce the level of uncertainty throughout the entire lifecycle of innovative product. The developed institutional spiral of knowledge generation in the instrument-making enterprises of the military-industrial sector involves the provision of incentives for knowledge generation at each stage of the product lifecycle. The results of this study can be used to build the diagram of knowledge generation and apply the procedures for increasing the efficiency of knowledge generation in the enterprises of the military-industrial sector.

Keywords: institutional economics, knowledge generation, innovation, methodological tools, military-industrial sector, state-owned enterprises, resource potential, institutional spiral, product lifecycle, state order

A. F. Sukhovey, I. M. Golova

Pages: 324334
Authors:  A. F. Sukhovey, I. M. Golova — Institute of Economics of the Ural Branch of RAS (Ekaterinburg, Russian Federation)
DOI: https://dx.doi.org/10.15826/recon.2016.2.3.029

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The purpose of this research is to substantiate the necessity for Russia to adopt a neo-industrialization policy as a tool for overcoming the consequences of the global crisis. The research hypothesis assumes that the competitiveness of Russian regions in crisis conditions cannot be enhanced without transforming the regional innovation priorities with regard to modern science and technology developments, production demands for modernization and import substitution, and accelerated the formation of the high technology sector. The authors believe that one of the main reasons for the current structural crisis in Russia is ignoring the determining impact of the innovations and technology development on the country’s regional socio- economic systems as a whole. The verification of this hypothesis based on the analysis of the official statistics revealed a number of negative tendencies impeding the country in overcoming the crisis phenomena through accelerated development of modern technological paradigms: decreasing staff component and deteriorating quality of the Russian science, widening the gap between the financial support in Russia and developed countries, reducing opportunities for innovation business development, and a lack of motivation for manufacturers to engage in innovation activities. The authors substantiate the necessity to strengthen the state innovation policy for the recovery of Russia’s socio-economic situation. They propose a methodological approach to choosing the priorities of innovation support for the economic development of Russian regions based on a comprehensive review of the condition and challenges in the development of research potential, the region’s business environment, and its ability to master innovations. Calculations are made to assess the possibility of creating innovation activity centers in the Russian regions of various types aimed at increasing the specific weight of high-tech companies focused on the production of innovations to address import substitution and economy neo-industrialization tasks urgent for Russia. The authors developed their own methodology to evaluate the possibilities of forming various types of innovation activity centers in the Russian regions aimed at increasing the specific weight of the high-tech sector and creating domestic high- tech companies, and focused on the production of innovations to address import substitution and economy neo-industrialization tasks urgent for Russia. The article is addressed to innovation management experts.

Keywords: innovation development, technology wave, global crisis, innovation policy, innovation strategy, high technology sector, innovation business, modernization, neo-industrialization, import substitution

А. E. Fyodorova, V. S. Katashinskikh, Z. Dvorakova

Pages: 335343
Authors:  А. E. Fyodorova, V. S. Katashinskikh — Ural Federal University named after the first President of Russia B. N. Yeltsin (Ekaterinburg, Russian Federation; e-mail: a.e.fedorova@urfu.ru), Z. Dvorakova — University of Economics, Prague (Prague, Czech Republic)
DOI: https://dx.doi.org/10.15826/recon.2016.2.3.030

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The paper discusses the assessment of precarious employment relations as one of the systemic factors of social pollution. The social pollution phenomenon in employment relations is caused by employers who use a strategy for the reduction of labour costs and toxic practices of human resource management. This paper presents the intermediate outcomes of a longitudinal study based on the methods of survey, involving workers of Russian companies in different sectors of economy. In 2014, authors conducted a pilot study in order to test the methodological tools for assessing social pollution in employment relations, which included assessing the degree of precarization. This pilot study also allowed the authors to verify the hypotheses of their research and to improve the tools for further application in the survey which was conducted in 2015 among the staff members of enterprises in the Sverdlovsk region. Thus, the authors have managed to identify the precarization-related toxic elements of employment relations in these enterprises, which damaged the physical health and psychosocial well-being of the employees. This study has also brought to light a number of current trends in the employment relations in the region. Although the research results are somewhat limited due to the fact that such observations should be made repeatedly over a long period of time, intermediary conclusions might also be of interest and could be used to search for ways of dealing with problems caused by the growing precarization on the level of individual enterprises as well as on the level of the whole region.

Keywords: social pollution, precarization of employment, employment relations, precariat, toxic practices of human resource management, health at work, employees’ wellbeing, toxic working environment, toxic leadership, toxic workplace

L. S. Krestyanova

Pages: 344352
Authors:  L. S. Krestyanova — Ural Federal University named after the First Russian President B. N. Yeltsin (Ekaterinburg, Russian Federation)
DOI: https://dx.doi.org/10.15826/recon.2016.2.3.031

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The article discusses the issues and trends of interethnic relations on the regional level. We suppose that migration processes have a direct influence upon them. Our hypothesis is that interethnic relations between the communities that traditionally reside in a specific region are fundamentally different from those established by recent migrants. For the former, the role of ethnicity is less important while the priority is given to the civil identity, which leads to the formation of supraethnic integrative images, mitigating interethnic conflicts. For the latter category of communities, the ethno-cultural boundaries are still strong, ethnic identity is prioritized and interethnic tension is aggravated by language and social barriers. We believe that when the regional authorities are seeking to harmonize interethnic relations, they are making a fundamental mistake by focusing on the first category of ethnic groups and ignoring the second. Interethnic tension mostly results from migration and the negative public perception of migrants, which causes a number of social and psychological problems. Our analysis explores the key factors shaping the attitude towards migrants and thus, creating interethnic tensions. We carried out a questionnaire survey in 2011 and also analyzed the results of the surveys conducted between 2008 and 2015, censuses and analytical reports on migration. Regional authorities may bene t from the results of our research by modifying their national and migration policies. This study may also be useful to other governmental agencies engaged in social and economic forecasting, especially concerning social tensions in the region.

Keywords: interethnic relations, migration, ethnic community, integrative image, interethnic tension, regional level, civil identity, supraethnic image, ethnic barriers, cultural barriers

M. A. Pechenskaya, T. V. Uskova

Pages: 353362
Authors:  M. A. Pechenskaya, T. V. Uskova — Institute of Socio-Economic Development of Territories of RAS (Vologda, Russian Federation)
DOI: https://dx.doi.org/10.15826/recon.2016.2.3.032

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For the whole social development of Russia as a democratic federal state, federal relations are basic. In this regard, it is particularly important to strike a balance between centripetal and centrifugal forces. The analysis of budget indicators presented in the article revealed the growing process of centralization, which enabled to conclude the low efficiency of the modern mechanism of tax allocation and its non-compliance to the principles of fiscal federalism. The growing budget crisis of the regions and the long-felt need of the structural reforming of Russian tax system require speedy implementation of internal reserves. Among these provisions, Russian scientists including the Institute of Socio-Economic Development of Territories of the Russian Academy of Sciences see the urgent need of the structural reform of the tax system in the Russian Federation. The results of the scientific search for answers to the questions of how and what it is expedient to amend, supplement, and delete in the Russian tax system are presented. In order to create incentives for the territorial authorities to increase the income, the algorithm of the distribution of tax revenue between the federal and regional budgets is developed on the basis of the estimations of the ratio of the volume of tax revenues collected in the region and received by the federal budget. Experimental calculations on the example of 83 entities of the Russian Federation have identified the existing provisions of tax revenue growth in 36 entities that could increase revenues by 2–12 %. The authors have proposed a set of key measures for optimizing the tax incentive policies, involving the development of selective and differential principles of tax incentives, the introduction of compensatory forms of the loss of income as a result of bene fits. The main measures to enhance the collection of regional and local property taxes are systematized.

Keywords: federal budget, regional budgets, local budgets, decentralization, budgetary authority, tax system, the effectiveness of tax policy, intergovernmental relations, the distribution of tax revenues, the increase of tax collection, optimization of preferential incentives

А. V. Shmidt, V. S. Antonyuk, А. Francini

Pages: 363373
Authors:  А. V. Shmidt, V. S. Antonyuk — South Ural State University (Chelyabinsk, Russian Federation), А. Francini — University of Ferrara (Milan, Italy)
DOI: https://dx.doi.org/10.15826/recon.2016.2.3.033

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The article focuses on the analysis of the major process of modern socio-economic development, such as the functioning of urban agglomerations. A short background of the economic literature on this phenomenon is given. There are the traditional (the concentration of urban types of activities, the grouping of urban settlements by the intensive production and labour communications) and modern (cluster theories, theories of network society) conceptions. Two methodological principles of studying the agglomeration are emphasized: the principle of the unity of the spatial concentration of economic activity and the principle of compact living of the population. The positive and negative effects of agglomeration in the economic and social spheres are studied. Therefore, it is concluded that the agglomeration is helpful in the case when it brings the agglomerative economy (the positive bene ts from it exceed the additional costs). A methodology for examination the urban agglomeration and its role in the regional development is offered. The approbation of this methodology on the example of Chelyabinsk and Chelyabinsk region has allowed to carry out the comparative analysis of the regional centre and the whole region by the main socio-economic indexes under static and dynamic conditions, to draw the conclusions on a position of the city and the region based on such socio-economic indexes as an average monthly nominal accrued wage, the cost of fixed assets, the investments into fixed capital, new housing supply, a retail turnover, the volume of self-produced shipped goods, the works and services performed in the region. In the study, the analysis of a launching site of the Chelyabinsk agglomeration is carried out. It has revealed the following main characteristics of the core of the agglomeration in Chelyabinsk (structure feature, population, level of centralization of the core) as well as the Chelyabinsk agglomeration in general (coefficient of agglomeration, index of agglomeration, coefficient of the development of the population, growth rates of agglomeration). The analysis of the internal environment of the agglomeration has shown that the industry of the majority of the cities-satellites is unprofitable, the space of the urban agglomeration is very heterogeneous. The research proves that the creation of the agglomeration will allow to solve the problems of the production diversification at the territory, to perform the effective land use, to optimize transport and housing-and-municipal infrastructure.

Keywords: urban agglomeration, spatial concentration of the population and economic activity, agglomerative economy, core and satellites of agglomeration, main characteristics of urban agglomeration, structural feature of agglomeration, population, level of centralization of the core of agglomeration, coefficient of agglomeration, index of agglomeration, coefficient of the development of the population of agglomeration, growth rates of agglomeration

V. A. Koretskaya-Garmash

Pages: 374384
Authors:  V. A. Koretskaya-Garmash — Ural Federal University named after the first president of the Russian Federation B. N. Yeltsin (Ekaterinburg, Russian Federation)
DOI: https://dx.doi.org/10.15826/recon.2016.2.3.034

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The article discusses the potential threats and benefits of external labour migration for the Russian economy through establishing cause-effect relations between the migration processes and the current economic situation. The analysis of statistical data on the development of Russian regions and on the demographic, migration, and financial trends in the country allows us to assess the potential risks of using the labour of external migrants. External migration may damage the Russian economy: it may result in depreciation of the Russian rouble; a growing de cit in the balance of payments; and in an increasing loads on the country’s pension system. We should not forget, however, that external migration can also bring a number of benefits: it can rejuvenate the population and supply human resources to those Russian regions which experience the shortages of the workforce for blue-collar jobs. Moreover, migrants make contributions to the federal budget by paying fees for work patents. The state government may use the results of this research to improve its migration and labour policy and to develop a state program to stimulate external and internal migrants to find employment in workforce shortage areas. This research shows the connection between labour migration and economic activity of local population; reveals the factors of external labour migration; and analyzes the effect migration has on the host country.

Keywords: unemployment; poverty; migrants; human capital; external labour migration; employment; balance of payments; economically active population; tax payments; budget

S. P. Zemtsov, V. L. Baburin

Pages: 385401
Authors:  S. P. Zemtsov — Institute for Applied Economic Research (Moscow, Russian Federation), V. L. Baburin — Lomonosov Moscow State University (Moscow, Russian Federation)
DOI: https://dx.doi.org/10.15826/recon.2016.2.3.035

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The category of economic-geographical position (EGP) was formalized based on a review of the scientific literature. The developed method of international and interregional EGP potential assessment was based on the use of gravity models; it can further be widely used in regional studies to explore the benefits of the spatial location of objects (countries, regions, cities, etc.). These calculations for Russia’s regions showed significant spatial differentiation. The maximum potential of interregional EGP potential have the regions located near Moscow and St. Petersburg agglomerations, the potential decreases uniformly to the east. The maximum international EGP potential concentrated in regions on the coast of the Black Sea, the Baltic Sea and the Sea of Japan. The potential of the Kaliningrad region 5.6 times higher than it is for the Tyva Republic. In addition, it was revealed a significant increase in the total EGP potential in the 2000s, and its shift to the southern regions of the Far East due to the growth of the Asia-Paci c economies. The results were also used to identify connections between the EGP potential and indicators of socio-economic development. It was found that favourable EGP is one of the factors for GRP growth, investment, foreign trade, migration growth and spread of new technologies. Formalizing EGP as a category allows using it to predict the spatial changes in the socio-economic development of Russia.

Keywords: economic-geographical position, market potential, Russian regions, gravity models, regional development