Economy of Regions

Symmetrical Approaches for the Non-Survey Regionalization Techniques: Ameliorating the Flegg’s Location Quotients

Argyrios D. Kolokontes — 2025-12-12

In most countries, policy planners face a lack of published primary regional and local input-output (I-O) data for analysing productive networks, which has led researchers to develop various non-survey techniques for the secondary estimation of regional and local intersectoral direct requirements coefficients, serving as the basis for calculating sectoral multipliers. This study seeks to improve non-survey regionalization techniques to better capture regional and local sectoral specializations and to produce more accurate sectoral multipliers for subnational development planning. The hypothesis is that a symmetrical and unrestricted use of the simple location quotient (SLQ), as part of the adjusted Flegg’s location quotient (aFLQ), such as the proposed KFLQ variation, can provide a more reliable database for modelling regional development. Under this approach, regional and local coefficients are allowed to surpass national averages. For the empirical analysis, the productive network of the West Greece region was simulated. Weighted and non-weighted type I backward sectoral employment multipliers were estimated to illustrate the differences resulting from the application of various regionalization techniques. The hypothesis was tested using the assumption that the parameter δ should be set so that KFLQ approaches 1 when the regional-to-national size of a sector approaches its average national allocation across regions. For SLQ, this occurs for each sectoral indicator at approximately 1.5. This assumption resolves the problem of the previously arbitrary definition of the exponent δ.

Exploring the Links Between Tax Education, Tax Awareness and Tax Compliance Among Students in Vietnam

Thi Hai Yen Mac — 2025-12-12

In Vietnam, tax non-compliance remains a significant issue, contributing to a large tax gap, and improving voluntary compliance is crucial for the country’s economic growth. This research contributes to understanding how tax education influences compliance through awareness, addressing a gap in the literature, particularly in emerging economies like Vietnam, and offering valuable insights for regional economic development strategies This study investigates the relationship between tax education and tax compliance, focusing on the mediating role of tax awareness among university students in Vietnam as future taxpayers. A quantitative approach was applied with a sample of 513 university students from various institutions across Vietnam. The survey was distributed through both direct email and online platforms to ensure diversity in responses. Data was analysed using SPSS 25, with Cronbach’s Alpha used to assess reliability and Confirmatory Factor Analysis to evaluate the measurement model. The findings from Structural Equation Modelling reveal that tax awareness significantly mediates the relationship between tax education and tax compliance, with a positive impact on compliance behaviour (coefficient = 0.777*, p = 0.000). However, tax education alone showed no direct effect on compliance behaviour (p = 0.218). Based on these results, the study suggests several policy recommendations: (1) enhancing tax education programs through transparency and technology, (2) integrating tax education into early curricula, and (3) using interactive e-tax platforms to increase accessibility. These strategies aim to promote tax compliance and contribute to sustainable economic growth in Vietnam and similar emerging economies.

COVID-19 Crisis, Ownership and Bank Efficiency in Emerging Market Economies: An Empirical Study of Vietnam

Trang Huyen Thi Vu — 2025-12-12

Research on banking efficiency is abundant, yet studies typically focus on agency theory, which yields mixed findings, or analyse the impact of COVID-19 on performance without accounting for ownership differences. This paper investigates the effect of the COVID-19 pandemic on the efficiency of the Vietnamese banking system, with a focus on different ownership types. Using data from 28 Vietnamese banks over 2016 to 2022, a bootstrap variant of data envelopment analysis is employed to assess efficiency, and the Simar and Zelenyuk (2007) subgrouping test is used to compare bank performance by ownership and pandemic effects. Results show that private banks are significantly less efficient in providing intermediation services and generating profits, while state-owned and foreign banks perform better. Overall, Vietnamese banks demonstrated resilience during the pandemic, but private banks lagged behind, indicating a need for targeted oversight to enhance sector efficiency. Regression analyses incorporating control variables provide further insights. Credit growth has little impact on performance, nonperforming loans improve operational efficiency, larger banks are more efficient, and a higher deposits-to-assets ratio negatively affects efficiency. These findings suggest the need for policy measures such as careful assessment of bank performance, targeted efficiency interventions for private banks, balancing risk and efficiency in lending, promoting bank growth, and diversifying funding sources. The results may also offer lessons for other emerging economies, including ASEAN and Latin American countries.

Corporate Demography: Balancing the Interests of the State, Business and the Population in the Russian Regions

Anna P. Bagirova — 2025-12-12

The year 2024 in Russia has become a landmark year in terms of rethinking the importance of including the institute of business in support of government policies aimed at increasing the birth rate. The Russian Tripartite Commission, which includes the Ministry of Labour and Social Protection, the Russian Union of Industrialists and Entrepreneurs, and the Russian Federation of Independent Trade Unions, recommended that employers provide support to employees with family responsibilities. The purpose of this study is to develop and implement a theoretical and methodological approach for identifying corporate measures targeting employees’ families that are attractive from the perspectives of different stakeholders: employers, public authorities, and employees. The study hypothesizes that such measures can be identified through a multidimensional assessment by the working population. The analysis was based on a survey of working-age individuals in three federal districts: Ural, Siberian, and Northwestern. The sample included 2,520 respondents, with 840 from each federal district, and each district represented by five regions. Survey data were standardized, weighted, and analysed using descriptive statistics and correlation analysis. The study shows that the top three measures most attractive to employers vary significantly across federal districts, while the set of measures most attractive to public authorities remains consistent. Within each federal district, there is a strong positive correlation between perceived external prestige and the potential demographic impact of measures, with an average correlation also observed with the prevalence of measures in the regions. These findings can inform regional efforts to design and promote measures supporting employees’ families, contributing to an expanded legislative framework for socially responsible business. Future work will focus on developing a methodology for the integrated assessment of the effectiveness of these measures’ implementation.

Demographic Patterns Across Settlement Types in the Russian North

Viktor V. Fauzer — 2025-12-12

The distribution of settlements in the Russian North has significant geopolitical implications, affecting connectivity, border security, and defence. Settlement size also determines the ability to provide essential services, such as healthcare and education, to the population. Despite this, there is a prevailing view that most northern settlements have limited demographic prospects. This article examines the demographic potential of urban and rural settlements with differing demographic dynamics and explores its dependence on population size. Specifically, the study analyses patterns of population reproduction, including birth and death rates, across urban and municipal districts as well as settlements of various sizes. The authors hypothesize that smaller settlements may have demographic advantages in certain indicators. Analysing births and deaths from 2014 to 2023 across 1,297 municipalities (24,500 data points in total), the study used age-standardized indicators combined with spatial and cartographic methods. Results indicate that birth rates in districts and urban settlements show little dependence on population size, whereas in rural settlements, smaller communities tend to have higher birth rates. Mortality, on the contrary, exhibits a consistent pattern across all settlement types: smaller populations are associated with higher mortality. The study concludes that if preserving the entire settlement network is unfeasible, priority should be given to municipalities demonstrating the most favourable demographic dynamics, ensuring territorial connectivity, cultural diversity, and the preservation of areas inhabited by indigenous peoples and long-term residents. Future research should consider the age structure and migration processes in settlements of different types.

Convergence of Digital Practices of Organizations and Households in Russian Regions

Julia A. Varlamova — 2025-12-12

The development of the digital economy and society aims to ensure equitable access to digital resources for all residents, regardless of geographic location, and to reduce the digital divide between regions. This study examines whether Russian regions are converging in terms of digitalization levels. The analysis uses open data from the Federal State Statistics Service (Rosstat) for 2003–2023, covering 80 federal subjects. The methodology employs sigma, gamma, and delta convergence approaches, focusing on two key economic agents—households and organizations. Digitalization indicators are categorized into three dimensions: access, use, and economic benefits derived from digitalization. Unlike aggregate index-based methods, this classification captures regional heterogeneity and provides a more nuanced understanding of the digital convergence process. The results indicate convergence across regions in local telephone service digitalization and household Internet use. A similar pattern is observed in the use of digital channels to access public services, reflecting progress in government–citizen digital interaction. However, divergent trends emerged during the pandemic: the digital divide widened in terms of access but narrowed in household usage. For organizations, convergence was identified in the use of servers, websites, and electronic data interchange. Based on these findings, the study concludes that expanding high-speed digital infrastructure should be a priority. Additionally, government efforts should focus on scaling best practices through digital platforms and promoting standardized IT solutions to support adoption by households and public authorities. Future research should investigate the factors that facilitate or hinder regional digital convergence.

Evaluating the Quality of Human Resources in a Regional Scientific and Educational Ecosystem

Inna A. Kulkova — 2025-12-12

Modern developments in science and education are marked by rapid changes in the global environment and the emergence of regional science-education ecosystems. However, the quality of the human resources (HR) involved in these ecosystems remains insufficiently examined. The purpose of the paper is to identify the key characteristics of HR quality in a regional science-education ecosystem, introduce a methodological approach for assessing HR quality through its influence on the regional economy, and demonstrate the application of this approach. The study’s hypothesis suggests that evaluating HR quality in a regional science-education ecosystem should include characteristics such as competence, motivation, engagement, innovativeness, and competitiveness. The proposed methodological approach is applied to assess HR quality in the science-education ecosystem of Novosibirsk Oblast, Russia. This region is one of the country’s major research hubs and has hosted the Academgorodok 2.0 program since 2018.
The analysis shows that the region’s human resources have above-average competitiveness, with an overall quality score of 4.4. They are highly qualified and open to innovation, supporting the region’s leading position in Russia’s innovation development ranking. Weaknesses include low workforce engagement and limited interaction between science, education, and industry. Enhancing collaboration among these spheres could strengthen the region’s innovative development. The study is limited by regional statistics, which do not fully capture all HR quality characteristics. Nevertheless, the results can guide regional science-education policy and support ecosystem-focused cooperation.

Scenario-Based Projections of Educational Capital in Russian Regions: A Comparison of Consolidated and Differentiated Investment Policies

Ilia M. Chernenko — 2025-12-12

In recent years, regional policy has prioritized developing human capital amid population decline and rising geoeconomic fragmentation. This paper projects the development of human capital in Russian regions up to 2035 under two scenarios: a consolidated policy scenario (CPS) promoting regional convergence and a differentiated policy scenario (DPS) maintaining existing heterogeneity. Using dynamic panel regression with Arellano–Bond estimators and Rosstat data for 84 regions, the study examines the impact of these scenarios on education and labour markets. Under the CPS, education spending relative to regional GRP is expected to decline, and higher education expansion slows, leading to a reallocation of human capital investments. The share of workers with tertiary education stabilizes at around 30 %, with each additional year of education contributing roughly 11 % to regional GRP. Under the DPS, education and research spending generally rise, the share of workers with higher education increases to 33–35 %, and interregional educational disparities narrow. However, the marginal contribution of each additional year of education to GRP falls to about 7 %, assuming similar economic growth. These findings illustrate the trade-offs between centralized coordination and differentiated development in human capital investment, offering guidance for regional policy. The projections are conditional and should be interpreted with caution due to assumptions of linear growth, stable demographics, and limited spatial interactions.

Assessment of Self-Development of Russian Regions as a Measure of Sustainability

Ekaterina A. Zakharchuk — 2025-12-12

The sustainability of regional development can be approached from multiple perspectives, yet existing methods often provide limited insight into long-term trends. This study aims to analyse the development dynamics of Russian regions using the theory of self-development and to identify the main factors contributing to their sustainability. The hypothesis is that studying the relationship between GRP growth rates and the financial and tax balance can provide key insights into the stability or instability of regional development. Two criteria of self-development were assessed for all Russian regions over the past 23 years: GRP dynamics and the balance of income and expenditure in the public sector (financial and tax balance). Analysis of GRP growth rates showed that only 14 regions experienced significant growth (over 1 %), while 22 regions exhibited declines of less than -1 %. Examination of the financial and tax balance revealed abnormal income withdrawal in 12 regions, whereas 17 regions recorded the opposite pattern.
By combining the dynamics of GRP and financial and tax balances, regions were classified into four subgroups: self-developing (18 regions), developing (19), financially stable (19), and underdeveloped (29). Self-developing regions are primarily located in the Central, Northwestern, and Volga Federal Districts (four regions each), while developing regions are concentrated in the North Caucasus (six regions). Financially stable regions are evenly distributed across the Central, Volga, and Ural Federal Districts, and underdeveloped regions are most prevalent in the Far East. The study considers regional development through the lens of federal districts and draws conclusions regarding the sources and factors of territorial self-development. Ten regions across different federal districts are shown to be exemplars of self-development.

Assessment of the Impact of Types of Economic Activities on the Formation of the Employment Structure of the Arctic Regions

Vladimir N. Myakshin — 2025-12-12

The negative dynamics of demographic and migration processes in the Arctic regions necessitates identifying the types of economic activity that have a primary influence on the formation of the sectoral employment structure. The development of these activities will contribute to increased employment, which explains the relevance of this research topic. The study’s hypothesis is that the primary influence on the sectoral employment structure is exerted by the types of economic activity whose share of total employment is the highest (or close to it), growing at a faster rate primarily due to employment growth within the sector itself, and contributing the greatest (or close to it) to changes in the sectoral employment structure. Statistical methods were used to analyze structural shifts in the sectoral employment structure. A criteria framework has been proposed and an algorithm for assessing the degree of influence has been developed, including an analysis of the specific weight, an assessment of the mass of structural shifts and the contribution of economic activities to changes in the regional employment structure, a classification of economic activities by the degree of influence in accordance with the developed criteria and assessment results, identification of industries with a priority impact, and, on this basis, determination of industry priorities for increasing employment in the economies of the Arctic regions. As an example of testing the developed approach, a classification of economic activities in the Arctic regions by the degree of influence on the industry structure of employment has been carried out, and industries with a priority impact (corresponding to three assessment criteria) have been identified. The contribution of economic activities related to the first and second classification groups to changes in the employment structure takes values from 73.24 % (Chukotka Autonomous Okrug) to 51.86 % (NAO), the specific weight is from 50.00 % (in Krasnoyarsk Krai) to 73.00 % (in Murmansk Oblast) with an upward trend, which is consistent with the proposed hypothesis. Based on the developed methodological approach, it is possible to develop a set of measures to increase employment.

Regional Industrial Specialization as a Driver of Russia’s Industrial Sovereignty

Natalya V. Pravdina — 2025-12-12

Macroeconomic turbulence has created the need to strengthen Russia’s industrial sovereignty by developing high-tech sectors and enhancing the complementarity between production and innovation. Given the heterogeneity of Russia’s economic space, achieving this goal requires a strategic redistribution of functions across territories, taking into account variations in industrial competencies and sectoral structures. This article develops analytical tools to assess the economic complexity of industrial structures and individual types of activity in industrial regions, aiming to optimize the portfolio of strategic specializations and identify promising areas for development to support Russia’s industrial sovereignty. The study focuses on 22 regions, covering 71 manufacturing industries of high and medium-high technology levels. The research methodology involves evaluating indicators of economic complexity, including comparative advantages of specialization, diversity, prevalence, technological connectivity, density, and inter-industry distance. The analysis draws on employment and shipped-product data for 2023–2024 from the EMISS and FIRA PRO information systems. The analysis mapped regional industrial structures, identified regions with complex industry profiles, clarified key strategic specializations, and highlighted promising industries with potential for technological and production growth. The analysis examined how the specialization structures of Yaroslavl and Kaluga regions align with their broader industrial systems, helping to identify promising types of economic activity and potential areas for policy support. The findings provide a foundation for defining industrial policy priorities, strengthening regional production and technological capacities, and advancing Russia’s industrial sovereignty.

Government Effectiveness and Economic Policy in the OECD: Convergence and Divergence (1996–2022)

Antonio Sanchez Andres — 2025-12-12

The OECD has long sought to promote the convergence of economic policies among its member states. Yet substantial differences persist in government effectiveness and in the outcomes of key economic policies, raising concerns about the ability of countries with weaker institutional capacities to narrow the gap with more advanced economies. Although the literature highlights the central role of institutional quality in shaping economic performance, less attention has been devoted to whether countries actually converge in government effectiveness, and to how this dimension influences broader patterns of economic convergence. This study examines sigma and beta convergence in government effectiveness and in five core economic policy variables — GDP per capita, inflation, unemployment, public debt, and government expenditure — across 38 OECD countries from 1996 to 2022, using data from the World Bank’s Worldwide Governance Indicators and World Development Indicators. The analysis acknowledges that convergence is not a unidimensional phenomenon: reductions in economic disparities may occur without full alignment of policy strategies, and convergence in macroeconomic outcomes does not necessarily imply convergence in the institutional frameworks that support them. Conversely, formal policy alignment does not guarantee comparable administrative capacities for effective implementation. The findings reveal sigma convergence in most economic variables but no evidence of beta convergence, indicating that countries starting from less favourable positions have not systematically caught up with better-performing peers. In contrast, government effectiveness diverges over time, reflecting increasing institutional heterogeneity within the OECD. Overall, the results suggest that while economic disparities have narrowed in some areas, this trend has not been accompanied by a parallel convergence in institutional capacity. Strengthening public administration, improving regulatory quality, and enhancing international coordination remain essential for fostering deeper structural convergence.

Changing Government Approaches to Technological Development: Results of a Cross-Country Assessment of Security Strategies

Anna A. Mikhaylova — 2025-12-12

Interest in critical and cross-cutting technologies is steadily growing, as many countries view them as key drivers of competitiveness and important instruments of geopolitical influence. While the concepts of technopolitics, techno-nationalism, technological sovereignty, and others have received scholarly attention, none of them provides a solid theoretical basis for a systematic comparison of various institutional approaches to technological development in the context of national security. Existing research rarely brings together institutional, economic, and geopolitical perspectives, leaving a gap in the assessment of national models of technological development. This article employs qualitative and quantitative analysis to identify how approaches to technological development have evolved in the security strategies of the United States, China, Russia, Japan, and the European Union in the post-Soviet period. The study draws on a qualitative examination of 34 official security documents. Current national strategies reflect a dual view of technologies, both as sources of threats and as resources for development, alongside a shift from a globalization-oriented model toward technological sovereignty. Technological development has broadened the spectrum of security concerns, with information and cybersecurity becoming particularly prominent. The study identifies the specific technologies prioritized by the United States, China, Russia, Japan, and the EU in their security strategies, together with a noticeable movement toward civil–military convergence. Shared goals across the examined countries and the EU include stimulating science and innovation, reducing reliance on foreign technologies, and developing high-tech industries. A comparison with data on integration into global supply chains, high-tech trade, and national R&D spending shows varying degrees of progress toward achieving technological sovereignty. The USA and China demonstrate the strongest statistical progress, while Japan, the EU, and Russia continue to face structural constraints and critical dependencies that weaken their efforts in the security sphere.

Assessing the Potential of the Sharing Economy in Kazakhstan’s Regions through Digital Transformation Metrics

Yevgeniy V. Varavin — 2025-12-12

The sharing economy, driven by digital technologies, is transforming traditional interactions between businesses and consumers and promoting more efficient resource use. However, the lack of standardized methodologies and official statistics complicates comprehensive analysis of its potential and scale. This study demonstrates the feasibility of using digital transformation indicators to assess the development of the sharing economy and identify key factors influencing its dynamics. A methodological approach was developed to assess the potential of the sharing economy and suggest ways to promote sharing-based models across regions. It combines an analysis of industry digitalization, using an adapted Digitalization Index, with an evaluation of how ready the population is to use digital technologies. Kazakhstan’s regions were grouped by digitalization level through hierarchical cluster analysis (Ward’s method), and the results for both industry and population datasets were compared using the TOPSIS method. This allowed the regions to be ranked according to their readiness to adopt sharing economy practices. The results reveal significant regional differences in the digital development of industries and in the population’s readiness to use digital technologies. Five regional groups with varying development potential were identified: high digitalization in the two largest cities; above-average in two industrially developed regions; average in four regions; below-average in eight regions; and low in four regions. For regions with low digitalization, recommendations include developing basic digital infrastructure, enhancing digital literacy, and stimulating small business activity. For leading regions (Almaty and Astana), it is advised to develop innovative services, attract foreign investment, and scale successful practices to other areas. The study’s practical significance lies in its applicability for designing targeted regional digitalization strategies to reduce disparities and promote sharing economy models across Kazakhstan.

Dairy Farming Development in Udmurtia, Russia: Digital and Biological Transformation

Alevtina I. Sutygina — 2025-12-12

Dairy cattle breeding is a priority for the Udmurt Republic (Russia), as future growth depends on the adoption of breakthrough innovations. This study assesses the impact of digital and biological technologies on regional dairy farming. The analysis draws on correlation methods and data from statistical agencies and the regional Ministry of Agriculture, reflecting dairy production and related breeding and genetic activities. Digital transformation in livestock farming is driven by automation and robotization, while genomic selection relies on evaluating animals’ breeding value. This approach allows forecasting offspring quality from parental traits and assessing the breeding value of newborn animals based on productivity, longevity, health, and fertility. Currently, genomic evaluation is applied only to breeding animals, which explains the strong correlation between the number of breeding cows and average milk yield per cow. The findings indicate that biologically driven breeding and genetic work accelerate milk productivity growth. Milk yield is strongly linked to cows’ productive lifespan and feed consumption: as yield per cow increases, productive lifespan tends to shorten, and feed consumption rises, although feed cost per centner of milk decreases. The article provides recommendations for advancing genomic selection in regional dairy farming, offering guidance for policymakers and practitioners to improve breeding practices and trait selection.

The Impact of Natural and Man-Made Emergencies on the Economic Development of Russian Regions

Yuriy A. Doroshenko — 2025-12-12

In the context of the focus on technological sovereignty and the priority of sustainable development, the impact of emergencies on economic growth remains insufficiently understood. This study examines how natural and man-made emergencies influence economic development, measured by GDP and GRP. The main hypothesis assumes that emergencies have a positive effect on regional economic development. Econometric methods were applied to test this assumption.

The first hypothesis, addressing the relationship between Russia’s economic growth and the negative consequences of emergencies, was tested using a single-factor correlation–regression analysis between GDP growth rates and the growth rates of total material damage from emergencies (2014–2023). The analysis revealed a moderate negative correlation; however, the regression model showed no statistical significance according to Fisher’s F-test. Thus, the empirical evidence did not confirm findings from several international studies that suggest a direct positive link between emergencies and regional economic development. The second hypothesis tested whether a point-by-point comparison of pre-crisis GRP trajectories and actual post-emergency development (2000–2022) would yield more accurate estimates of the impact of emergencies on regional economies. The results were mixed: a positive effect was observed in the Republic of Khakassia and Krasnodar Krai, a negative one in Amur Oblast and the Jewish Autonomous Region, and a neutral effect in Kemerovo Oblast and Khabarovsk Krai. Overall, the findings indicate that the impact of emergencies on regional economic performance in Russia is nonlinear and context-dependent. The hypothesis of a systematic positive effect for the country as a whole, reported in some international studies, was not supported. The results may inform the development of regional economic strategies and future research on the economic consequences of emergencies.

Participation of Small and Medium-Sized Businesses in Public Procurement as a Factor of Sustainable Development of the Volga Federal Okrug

Svetlana Z. Valiullina — 2025-12-12

Despite the recognized role of state and municipal procurement as an important instrument for supporting small and medium-sized businesses (SMEs), a persistent gap remains between declared support measures and their practical implementation. The analysis of research literature revealed key barriers limiting SME participation in public and municipal procurement, as well as the limited attention given to regional differences in SME engagement. To assess SME involvement in the public procurement system, the study proposes a set of specialized indicators, including the index of SME coverage of public procurement, the procurement activity coefficient of unique SME suppliers, and an adapted Gini coefficient for identifying the uneven distribution of procurement value among SMEs. These indicators were tested using procurement data from regions of the Volga Federal Okrug. An examination of 721,151 contracts from 2022–2024 revealed considerable regional disparities: industrially developed regions show hyperconcentration of procurement among a small group of suppliers, while agricultural regions demonstrate low procurement activity. The findings indicate that regional protectionism has a dual effect—stimulating SME participation in economically weaker areas while simultaneously restricting competition in industrial centres. The study proposes differentiated regional policy measures for improving SME access to public procurement. Future research may involve expanding the geographical scope and developing tailored models of SME support that take regional and sectoral characteristics into account.

The Impact of Migration Activity on Housing Construction Development in Russian Regions

Svetlana N. Kotlyarova — 2025-12-12

Migration processes in contemporary Russia significantly influence regional socio-economic development, creating both challenges and opportunities for housing construction. This study addresses two research questions: How does migration intensity stimulate housing construction in Russian regions, and does this effect differ between resource-rich and non-resource-rich regions? The analysis employs panel data for 83 regions from 2005 to 2021, drawing on statistics from the Federal State Statistics Service, the Central Bank of Russia, and the Agency for Housing Mortgage Lending. The study applies the dynamic threshold model developed by Kremer et al. (2013), which extends the approaches of Hansen (1999) and Caner and Hansen (2004), allowing for nonlinear effects, endogeneity, and heterogeneity bias. The results reveal a nonlinear relationship between migration and housing construction in Russian regions, with notable differences between resource-rich and non-resource-rich regions. In non-resource-rich regions, the relationship between migration and housing construction remains consistent across the sample, both before and after the identified threshold, and across all control variables. Statistically significant positive effects were found for the employment rate of the working-age population, the production index of other non-metallic mineral products, and real estate prices. In resource-rich regions, migration does not have a significant effect on housing completion rates, while mortgage lending volumes and household income show statistically significant negative effects. These findings can inform the development of state strategies and national projects in housing and regional policy.

Methodological Approach to Assessing the Scale of the Military-Industrial Complex in Russian Regions

Angelina I. Egorova — 2025-12-12

The military-industrial complex of the Russian Federation is currently expanding rapidly and remains a state priority. This study aims to assess its scale across Russian regions, identify its sectoral structure, and develop a methodology for estimating its volume. The research hypothesis suggests that the role of the military-industrial complex in Russia’s economy is often overestimated and that it, in fact, represents a relatively small share of the national economy. The sample includes all regions of Russia, excluding the so-called “new regions.” The novelty of the proposed methodology lies in the use of data on the volume of shipped products, which, unlike gross regional product (GRP) data, are published by Rosstat for specific sub-sectors of the manufacturing industry. Each sub-sector of the military industry was evaluated using a tailored approach: in some cases, Rosstat’s technical classifications were applied, while in others, information was drawn from interviews with enterprise and agency heads as reported in the media. The calculations also considered the contributions of scientific organizations and the public administration sector. All components of the military-industrial complex were then converted into a comparable indicator—GRP. The results show that the average share of the military-industrial complex in Russia’s economy amounts to 5.8 % (as of 2023), with regional variation ranging from 0 % to 18 %. The proposed methodology for estimating the share of the military-industrial complex in the economy can be applied by a wide range of analysts, including both government bodies and business structures. Its main advantage is the reliance on open-source data.

Spatial Autoregressive Modelling of Priorities for Agricultural Development in the Ural Federal District

Ilya V. Naumov — 2025-12-12

Disparities in spatial development across agricultural sectors are becoming an increasingly urgent issue for regional food security. The study’s hypothesis is that agricultural development should focus on creating new growth poles, forming spatial clusters, and strengthening cooperative ties with surrounding areas. The purpose of this study is to test a methodological approach that supports the identification of promising directions for the development of the agricultural sector in the Ural Federal District (Russia). The proposed approach evaluates the spatial distribution of agricultural production in livestock and crop sectors, identifies centres of localization, emerging clusters, and their zones of influence, and examines direct and inverse spatial interactions between municipalities. These tasks are addressed through spatial autocorrelation analysis following P. Moran’s methodology and L. Anselin’s matrices of local spatial autocorrelation indices, while spatial autoregressive modelling assesses the effectiveness of proposed development priorities. As a result, the study identified priorities for the spatial development of agricultural sectors in the Ural Federal District, including new growth poles in crop production (Beloyarsky and Bogdanovich districts; Kartalinsky, Oktyabrsky, and Argayashsky municipal districts) and livestock farming (Kamyshlov District; Reftinsky, Tavdinsky, and Ketovsky districts), along with stronger cooperative links between existing and emerging growth poles, spatial clusters, and surrounding municipalities. Spatial modelling confirmed the effectiveness of these priorities for crop production and indicated that concentrating livestock production in growth poles is ineffective without the development of cooperative relationships. The findings of the study may be useful to policymakers in setting priorities for the spatial development of agricultural sectors in the Ural Federal District.

Erratum

2025-12-12

Tsvetkov, V. A., Abramov, E. G., & Mayorova, E. A. (2025). The Impact of the Trade Sector on Retail Trade Turnover in Russian Regions. Ekonomika regiona / Economy of regions, 21(1), 70-84. https://doi.org/10.17059/ekon.reg.2025-1-6

On the pages 70 and 71 there were mistakes in the affiliation of Valery Tsvetkov in Russian and in English, accordingly. The correct affiliation is the following:

В. А. Цветков а), Е. Г. Абрамов б), Е. А. Майорова в)

а) Финансовый университет при Правительстве РФ, г. Москва, Российская Федерация

б) Институт проблем рынка Российской академии наук, г. Москва, Российская Федерация

в) Российский экономический университет им. Г. В. Плеханова, г. Москва, Российская Федерация

Valery A. Tsvetkov a), Egor G. Abramov b), Elena A. Mayorova c)

а) Financial University under the Government of the Russian Federation, Moscow, Russia

b) Market Economy Institute of RAS, Moscow, Russian Federation
c) Plekhanov Russian University of Economics, Moscow, Russian Federation

Moreover, on the page 84 the information about the authors is corrected in Russian and in English as follows:

Цветков Валерий Анатольевич — член-корреспондент РАН, доктор экономических наук, профессор, заведующий кафедрой экономической теории факультета международных отношений, Финансовый университет при Правительстве РФ; Scopus Author ID: 56385114200; Researcher ID: R-4771 2016; http://orcid.org/0000-0002-7674-4802 (Российская Федерация, 125167, Москва, Ленинградский пр-т, д. 49/2; e-mail: tsvetkov@ipr-ras.ru).

Valery A. Tsvetkov — Corresponding Member of RAS, Dr. Sci. (Econ.), Professor, Head of the Department of Economic Theory, Faculty of International Economic Relations, Financial University under the Government of the Russian Federation; Scopus Author ID: 56385114200; Researcher ID: R-4771–2016; http://orcid.org/0000-0002-7674-4802 (49/2 Leningradsky Avenue, Moscow, 125167, Russian Federation; e-mail: tsvetkov@ipr-ras.ru).