Abstract
The subject of the study. The research is devoted to the study of the current topic of economic diversification in Russian regions.
The purpose of the study. It is to show the relationship between the diversification of the region’s economy and the level of its economic development.
Results of the paper. There is no uniform agreement on how the economic development of the region is affected by the diversification of the economy. The paper analyzes the level of diversification of the regions of the Far Eastern Federal District. The diversification of the economy of the regions is proposed to be measured using the Herfindahl–Hirschman Index. The paper shows that against the backdrop of growing diversification of all federal districts of Russia, only the Far Eastern Federal District shows a reverse trend. This is due to the large share of resource-based regions, to which we assigned 4 subjects of the district out of 9 (according to the methods of academician Granberg). It is the resource-based regions that show the inverse dependence of their per capita regional product on the level of economic diversification. The higher the level of specialization in these subjects, the higher the level of per capita gross regional product. Non-resource-based entities of the Far Eastern Federal District have a stable level of diversification index. The dependence of their per capita gross regional product on the level of diversification is not observed.
The paper concludes that there is no need to diversify the resource-based regions in the short term. The individual specialization of each regional entity can be combined with a set of different specializations of these subjects, that is, the diversification of the country’s economy should be combined with the specialization of the regions.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Imbs, J., Wacziarg, R.: Stages of diversification. Am. Econ. Rev. 93(1), 63–86 (2003)
Koren, M., Tenreyro, S.: Volatility and development. Q. J. Econ. 122(1), 243–287 (2007)
Boschma, R., Coenen, L., Frenken, K., Truffer, B.: Towards a theory of regional diversification: combining insights from evolutionary economic geography and transition studies. Reg. Stud. 51(1), 31–45 (2017)
Heston, S.L., Rouwenhorst, K.G.: Does industrial structure explain the benefits of international diversification? J. Financ. Econ. 36(1), 3–27 (1994)
Baldwin, J.R., Brown, W.M.: Regional manufacturing employment volatility in Canada: the effects of specialisation and trade. Pap. Reg. Sci. 83(3), 519–541 (2004)
Essletzbichler, J.: Diversity, stability and regional growth in the United States, 1975–2002. In: Applied Evolutionary Economics and Economic Geography, pp. 203–229 (2007)
Pallares, F.J., Adkisson, R.V.: The Impact of industrial diversification on employment growth in the 50 US States: 2000–2013. Econ. Dev. Q. 31(4), 275–284 (2017)
Berger, P.G., Ofek, E.: Diversification’s effect on firm value. J. Financ. Econ. 37(1), 39–65 (1995)
Lang, L.H., Stulz, R.M.: Tobin’s q, corporate diversification, and firm performance. J. Polit. Econ. 102(6), 1248–1280 (1994)
Izraeli, O., Murphy, K.J.: The effect of industrial diversity on state unemployment rate and per capita income. Ann. Reg. Sci. 37(1), 1–14 (2003)
Koren, M., Tenreyro, S.: Technological diversification. Am. Econ. Rev. 103(1), 378–414 (2013)
Potekhin, N.A., Rusakov, M.Yu.: The thermodynamic approach to the study of integration and diversification of regional production. Econ. Reg. 1, 123–128 (2007)
Parakhina, V.N., Vorontsova, G.V., Momotova, O.N.: Methodological tools for assessing the level of regional diversification and its implementation. Econ. Yesterday Today Tomorrow 1-2, 36–50 (2012)
Polikarpova, M.G.: Statistical analysis of the diversification of integration activity in the Russian economy. Young Sci. 10, 377–379 (2013)
Kolomak, E.A.: Interregional inequality in Russia: economic and social aspects. Spat. Econ. 1, 132–150 (2010)
Smith, S.M., Gibson, C.M.: Industrial diversification in nonmetropolitan counties and its effect on economic stability. West. J. Agric. Econ. 13, 193–201 (1988)
Ankudinov, A.B., Belyaeva, M.N., Lebedev, O.V.: Influence of diversification on the efficiency of regional economy. Reg. Econ. Theory Pract. 31(262), 8–20 (2012)
The Site of the Federal State Statistics Service. http://www.gks.ru
Granberg, A.G.: Is there a future for the resource-based regions of Russia. In: VI International Kondratieff Conference “Does Russia Have a Non-Resource-Based Future?”. Reports and Speeches of the Conference Participants. Institute of Economics, Russian Academy of Sciences, Moscow, pp. 505–518 (2008)
Zaretskaya, V.G., Titkova, I.K.: Diversification of the economy of Russian regions: measurements and trends. Natl. Interests Priorities Secur. 12(357), 2236–2255 (2017)
BP Statistical Review of World Energy June 2017. http://www.bp.com/content/dam/bp/en/corporate/pdf/energy-economics/statistical-review-2017/bp-statistical-review-of-world-energy-2017-full-report.pdf
Russian News Agency. http://tass.ru/ekonomika/4112616
Zaretskaya, V.G., Dremova, L.A., Osinevich, L.M.: Sectoral convergence of labor productivity as a guarantee of the Russian economy’s susceptibility to innovation. Reg. Econ. Theory Pract. 33(312), 38–44 (2013)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Switzerland AG
About this paper
Cite this paper
Zaretskaya, V.G. (2019). Diversification or Specialization: Development of the Regions of the Far Eastern Federal District. In: Solovev, D. (eds) Smart Technologies and Innovations in Design for Control of Technological Processes and Objects: Economy and Production. FarEastСon 2018. Smart Innovation, Systems and Technologies, vol 139. Springer, Cham. https://doi.org/10.1007/978-3-030-18553-4_36
Download citation
DOI: https://doi.org/10.1007/978-3-030-18553-4_36
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-18552-7
Online ISBN: 978-3-030-18553-4
eBook Packages: Intelligent Technologies and RoboticsIntelligent Technologies and Robotics (R0)