Modelling the Assessment of the Impact of Industry Factors on the Level of the Territories’ Socio-Economic Development and Economic Security

• Published in: Economy of Region
• Main Authors: Valeriy Petrovich Chichkanov, Lyubov Alexandrovna Belyaevskaya-Plotnik, Polina Aleksandrovna Andreeva
• Format: Article in Journal/Newspaper
• Language: English; Russian
• Published: Russian Academy of Sciences, Institute of Economics of the Ural Branch 2020
• Subjects: regional economy; regional development; economic security; industry factors of the regional development; factor analysis; correlation and regression analysis; integral indicator; folk arts and crafts; places of traditional existence; measures of supportin; Regional economics. Space in economics; HT388; Arkhangelsk
• Online Access: https://doi.org/10.17059/2020-1-1; https://doaj.org/article/60b66058a95a4d7ba6de8054fadf655f

Nowadays, folk arts and crafts are not only a form of economic activity, but also a part of the Russian cultural heritage. However, in the context of crisis, slowdown of production volumes, and reduction of output, the independent existence of this industry is threatened. What is more, these factors jeopardize the level of economic security of the territories, where this type of activity primarily creates the territory’s value added and serves as the only source of income for its population. The paper aims to discover such instruments of impact on the development of territories taking into account their industry specificity, as the point pressure on them will lead to economic growth. In this regard, we determined the study’s objectives. They include identification of factors that most affect the industry’s development; calculation of a composite integral indicator for assessing the level of the industry’s development in a particular region; quantitative assessment of the identified factors’ impact on the industry’s development in the pilot regions. The main research methods are integrated analysis for ranking the regions, and correlation and regression modelling for assessing the impact of industry factors on the level of the territories’ socio-economic development. We hypothesise that the creation of conditions for the development of the region’s main industry will not only stimulate its socio-economic growth, but also provide the necessary level of economic security. As a result, we have compiled a rating of the territories (including the Arkhangelsk, Vladimir, Nizhny Novgorod, Moscow regions and the Republic of Dagestan) and identified stimulating and discouraging factors in the industry’s development (historical, cultural, economic and social). Based on these findings, we have determined the instruments for influencing the industry in constituent entities. In conclusion, the proposed approach allowed us to establish the stimulating and discouraging factors in the industry’s development and to determine the ...