Spatial Analysis of the Dynamics of Structural Shifts in the Economies of Russian Regions in 2004–2019

• Published in: Regional research of Russia Vol. 11; no. 4; pp. 454 - 463
• Main Author: Melnikova, L. V.
• Format: Journal Article
• Language: English
• Published: Moscow Pleiades Publishing 01.10.2021; Springer Nature B.V
• Subjects: Decomposition; Economic activity; Economic growth; Economics; Economics and Finance; Growth models; Growth rate; Regional/Spatial Science; Regions; Slavic studies; Spatial analysis; Spatial Development; Russia; gross value added; local competitiveness; employment; shift-share analysis; interregional interactions; structural shifts
• ISSN: 2079-9705; 2079-9713
• DOI: 10.1134/S2079970521040249

— The article studies differences in regional economic growth models, for the identification of which the shift-share method of structural decomposition of growth rates is used. This method makes it possible to explain the deviation (shift) of the regional growth rate from the expected one, assuming an identical sectoral structure in all regions. The shift is decomposed into industry-mix (compositional) and regional (competitive) components in accordance with the classical formulation of the method. The spatial approach divides the regional shift into components determined by the effects of potential spatial spillover and local competitiveness. As economic activity indicators, gross value added and the average annual number of employed in the economy by type of economic activity in the context of federal subjects are used. The analysis was performed in a dynamic setting for 2004–2019. The results showed a decisive contribution of the effect of own competitiveness to differentiation of regions in terms of growth rates. This effect arises from differences in productivity of the same industry in different regions and is measured by the regional shift. The spatial decomposition of regional growth rates made it possible to separate the contribution of own competitiveness from the local competitiveness of the region. The influence of the first factor proved predominant. The regional (competitive) shift in most regions, regardless of its sign, was formed due to the local competitive effect, not to realization of the potential of spatial spillover of growth.