ASSESSMENT AND MECHANISM OF REGULATING INTER-REGIONAL SOCIO-ECONOMIC DIFFERENTIATION (CASE STUDY OF THE RUSSIAN FEDERATION)

Elena GUBANOVA

Doctor of Sciences (Economics), Professor, Head of the Finance and Credit Department, Federal State Budgetary Educational Institution of Higher Education “Vologda State University”, Russia

gubanova_elena@mail.ru

Nikolai VOROSHILOV

Candidate of Sciences (Economics), Research Associate of the Sector for Research in the Effectiveness of Management of Socio-Economic Systems of the Department for Issues of Socio-Economic Development and Management in Territorial Systems, Federal State Budgetary Institution of Science “Vologda Research Center of the Russian Academy of Sciences”, Russia

niks789@yandex.ru

Abstract

The existence of significant differences in the levels of socio-economic development of Russian regions and the need to determine state impact methods aimed at reducing inequality indicate the existence of territorial differentiation; this is the problem the article authors address. The paper proposes a methodological approach to the assessment of inter-regional differentiation, which helps solve a set of inter-related tasks on the basis of the data of state statistics and expert surveys. To assess the extent and size of territorial inequalities, the variation and Theil indices are used. The correlation and regression analysis discloses a trend to reduce differences among Russian regions in 2005-2017. On the basis of the author’s method, the integral index (aggregating 22 private indicators) is calculated; on its basis, RF subjects are grouped according to a socio-economic development level. The complexity and scale of the differentiation problem is emphasized by the fact that at the end of 2017, 43 subjects belong to the groups with below average and low development levels. The work identifies “backward regions” (18) and “regions with a sign of depression” (13), which should become a priority object of the federal regional policy. The analysis proves the hypothesis about weak influence of the state policy tools of regional development in Russia on processes of territorial development and confirms reduction in the scale and consequences of differentiation. The authors propose a conceptual scheme of the mechanism to manage the process of reducing inter-regional differentiation and overcoming its consequences, which can be used when implementing the Strategy for Spatial Development of the Russian Federation and other strategic planning documents. The results can be used by federal authorities to improve methods and tools for implementing the state policy of regional development, as well as serve as the basis for further research on this topic.

Keywords: Russian Federation, region (RF subject), inter-regional differentiation, gross regional product, convergence.

JEL classification: R1, R5
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THE URBAN STRUCTURE OF SPAIN AND ITALY (1900-2011)

Carlos GAYÁN-NAVARRO

University of Zaragoza, Spain

carlosgayannavarro@gmail.com

Miguel PUENTE-AJOVIN

University of Zaragoza, Spain

mpajovin@unizar.es

Fernando SANZ-GRACIA

University of Zaragoza, Spain

fsanz@unizar.es

Abstract

Our main purpose is to study the evolution of the urban structure of Spanish and Italian municipalities from 1900 to 2010. We use the estimation of the Pareto exponents to show that the most important behavior  is the increase of inequality in the distribution  over time. Convergence is more likely in Italy and for larger urban units.

Financial support from Ministerio de Economía y Competitividad (ECO2017-82246-P) and support by Aragon Government (ADETRE Consolidated Group) is acknowledged.

Keywords: urban evolution, Spain, Italy, Pareto exponent

JEL classification: R11, R12
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A STOCHASTIC MODEL OF COMPETITION BETWEEN TWO CITIES FOR MEMBERS OF THE CREATIVE CLASS

Amitrajeet A. BATABYAL

Arthur J. Gosnell Professor of Economics, Department of Economics, Rochester Institute of Technology, Rochester, NY 14623-5604, USA

aabgsh@rit.edu

Seung Jick YOO

Graduate School of International Service, Sookmyung Women’s University, Seoul, Republic of Korea

sjyoo@sookmyung.ac.kr

*Corresponding Author

Abstract

Batabyal and Yoo (2019) have recently obtained a significant result in their analysis of the use of utilitarian and Rawlsian policies by two cities to attract the creative class. They show that if one city switches to a Rawlsian or more egalitarian objective when the other city remains utilitarian, the aggregate economy of two cities becomes less egalitarian. We show that this result depends fundamentally on the assumption that the creative class population can be described by a triangular probability distribution. If this population is modeled instead with an inverted triangular probability distribution then the above result is reversed in the sense that the welfare of the worst-off member of the creative class is always enhanced when one city switches to a Rawlsian or more egalitarian objective, irrespective of the objective of the other city.

Keywords: City, Competition, Creative Class, Rawlsian, Utilitarian

JEL classification: R11, D63
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