Regional economic policy instruments towards changing the quality of institutions: theoretical approach to analysis and implementation in the Russian Far East

• Published in: Теоретическая и прикладная экономика no. 4; pp. 87 - 106
• Main Author: Feoktistova, Kseniia Igorevna
• Format: Journal Article
• Language: English
• Published: 01.04.2024
• ISSN: 2409-8647; 2409-8647
• DOI: 10.25136/2409-8647.2024.4.72776

To stimulate economic growth of the Russian Far East, in addition to "standard" regional policy instruments such as tax incentives, subsidies from the federal budget for infrastructure development, etc., also implement institutional programs. The aim is to change the rules and, consequently, patterns of economic agents’ behavior in the region. The result of such programmes should be to solve the demographic problem of RFE, as well as attracting private investment in the development of the region. The intermediate result of institutional development programs is a certain-way-defined stimulus to economic agents, which in turn is difficult to measure and not obvious. In this article the theoretical premises are formulated, which ensure the effectiveness of planning and management of regional economic policy instruments aimed at changing the quality of institutions of the periphery. An empirical example of such a tool is the program of simplified privatization of land – "Far Eastern hectare" launched in 2016 for development of the Russian Far East. On its basis, an analysis has been carried out to explain the detected program implementation patterns in accordance with the given theoretical concepts. The statistical analysis of intermediate results, as well as a series of previous qualitative studies by the author explain the regularity of implementation of the program in accordance with the given theoretical concepts. In particular, the importance of municipal interests as an institutional component ensuring effective reform. The relevance of institutional approach to management of defined type of development programs of peripheries was justified. The current approach, based on formal indicators (number of "hectares" granted), does not account for the institutional characteristics of the territory. These features are manifested in the distorted incentives not only of development participants, but of local performers.