Month: December 2018

OPPORTUNITIES AND LIMITATIONS OF REGIONAL AUTHORITIES’ USE OF PUBLIC ADMINISTRATION TOOLS FOR ECONOMIC DEVELOPMENT

Galina Yakovlevna BELYAKOVA

Dr. habil. in Economics, Professor, Institute of Economics, Management and Nature Management, Siberian Federal University

vorobieva.t.n@yandex.ru

Tatyana Nikolaevna VOROBYEVA

Ph.D. Candidate (Economics), Reshetnev Siberian State University of Science and Technology, Auditor of the Accounting Chamber of the Krasnoyarsk Krai

vorobieva.t.n@yandex.ru

Abstract

The article outlines the authors’ understanding of the formulation of the regional economic policy. Within the framework of the research, the authors examine regional authorities’ willingness to successfully implement the strategic goals of economic development. The methodological basis of the systematic, logical, and comparative analysis allows examining the opportunities and limitations of regional authorities’ influence on the development of the regional economy. The article highlights the need for improving the existing instruments of public administration (state regulation) that can contribute to the development of the economy. In this regard, the authors emphasize the problem of defining sectoral and consolidated registers of public authorities’ regulatory competencies involved in the constituent entities of the Russian Federation, and the formation of the state regulatory policy. The practical significance of the article is related to the possibility of using the research results to enhance regional authorities’ capabilities to influence the development of the economy.

Keywords: public administration instruments; regional economic development; public administration effectiveness

JEL classification: R58, R1, R5, R11, O1, O2, H83, H70
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A MEASUREMENT ISSUE REGARDING THE LINK BETWEEN A REGION’S CREATIVE INFRASTRUCTURE AND ITS INCOME

Amitrajeet A. BATABYAL

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

aabgsh@rit.edu

Seung JICK YOO

Corresponding Author. Graduate School of International Service, Sookmyung Women’s University, 100 Cheongpa-ro 47-gil, Yongsan-gu, Seoul, Republic of Korea.

sjyoo@sookmyung.ac.kr

Abstract

The creative capital possessed by the members of the creative class in region  is either acquired through education or present innately in these members. Therefore, the creative infrastructure  in the  region is the sum of a part  representing creative capital obtained through education and a second part  denoting creative capital present innately in the creative class members. A researcher wishes to estimate the true relationship between the  region’s log income per creative class member  and its creative infrastructure  He has data on  but not on  We study whether an ordinary least squares (OLS) regression of  on a constant and  will produce an unbiased estimate of the impact of  on  in two cases. In the first case,  and  are uncorrelated. In the second case,  and  are positively correlated.

Keywords: Creative Capital, Creative Infrastructure, Ordinary Least Squares Estimation

JEL classification: L80, C13
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A NOTE ON SCHUMPETERIAN COMPETITION IN THE CREATIVE CLASS AND INNOVATION POLICY

Amitrajeet A. BATABYAL

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

aabgsh@rit.edu

Seung JICK YOO

Corresponding Author. Graduate School of International Service, Sookmyung Women’s University, 100 Cheongpa-ro 47-gil, Yongsan-gu, Seoul, Republic of Korea.

sjyoo@sookmyung.ac.kr

Abstract

We study innovation policy in a region in which the members of the creative class engage in Schumpeterian competition and thereby extend aspects of the recent analysis in Batabyal and Yoo (2017). Using the language of these researchers, the creative class is broadly composed of existing and candidate entrepreneurs. In contrast to these researchers, we suppose that R&D by candidate entrepreneurs does not generate any negative externalities. In this setting, we analyze the impact that taxes and subsidies on R&D by existing and candidate entrepreneurs have on R&D expenditures and regional economic growth.

Keywords: Creative Class, Creative Destruction, Economic Growth, Innovation Policy, R&D

JEL classification: R11, O31, O38
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