Month: December 2017

BOOSTING THE AUTONOMY OF REGIONAL BANKING SYSTEMS AS A DRIVER OF ECONOMIC DEVELOPMENT: THE CASE OF RUSSIA

Dinara Khamitovna GALLYAMOVA

Doctor of Economic Sciences, Head of the Department of Territorial Economics, Institute of Management, Economics, and Finance, Kazan Federal University

dinara_khamitovna@list.ru

Aidar Il’darovich MIFTAKHOV

Assistant professor Department of Territorial Economics, Institute of Management, Economics, and Finance, Kazan Federal University

miftakhov.a.i@mail.ru

Abstract

The object of the research study reported in this paper is to work out a set of practical recommendations on reforming the key instruments and mechanisms that underpin state regulation of Russia’s banking sector to help boost the autonomy of its regions’ banking systems based on a set of inferences derived regarding the effect of autonomy in terms of boosts in the efficiency of regional banking systems. The authors’ practical recommendations are aimed at stimulating the self-development of the nation’s regions. Institutional regulation of the regional banking system is proceeding along the path of putting together regional financial-industrial clusters, participants in which are eligible for the long-term use of the resources available. What is open to question is the degree to which the regulator’s standards and requirements are differentiated depending on the specificity of the region’s economy and the bank’s sectoral specialization.

Keywords: state regulation, regional banking system, Central Bank of Russia, economic growth, monetary-lending policy

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AGGLOMERATION ECONOMICS IN REGIONS: THE CASE IN THE RUSSIAN INDUSTRY

Svetlana RASTVORTSEVA

World Economy Department – National Research University Higher School of Economics, Russia, http://www.hse.ru

Srartvortseva@gmail.ru

Abstract

The paper deals with the issues of economic activity location in the Russian regions, that is influ-enced not only by factors “first nature” – the presence of minerals, fertile land, favorable geographic position, but also factors of a “second nature”, in particular, the agglomeration effects and the econ-omy of scale. Analysis of geographic concentration and regional specialization reflects the general trend of the location of industrial production, investment and human resources, provides the necessary information basis for a balanced economic policy.

Keywords: New Economic Geography, Regional Economics, Location Theory, the Geographic Concentration of Economic Activity, Regions of Russia

JEL classification: R11, R12

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A NOTE ON OPTIMAL INCOME REDISTRIBUTION IN A CREATIVE REGION

Amitrajeet A. BATABYAL

Department of Economics, Rochester Institute of Technology, 92 Lomb Memorial Drive, Rochester, NY 14623-5604, USA.

aabgsh@rit.edu

Abstract

We study optimal income redistribution in a region that is creative in the sense of Richard Florida and thereby extend aspects of the recent analysis in Batabyal and Beladi (2017). Using the terminology of these researchers, members of the creative class are either artists or engineers. This bipartite grouping stems from the manner in which creative capital is acquired by the artists and the engineers. Specifically, we show that when the savings rates of the artists and the engineers comprising the creative class satisfy a particular inequality, it is possible for a regional authority (RA) to uniquely redistribute income between these two groups in a way that achieves the so called “golden rule” stock of physical capital.

Keywords: Creative Capital, Creative Class, Golden Rule, Income Redistribution, Region

JEL classification: R11, D31

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