IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxiy2018i3p89-99.html
   My bibliography  Save this article

Investment Development of Russian Regions Backed up by Natural Monopolies

Author

Listed:
  • S.N. Silvestrov
  • N.V. Kuznetsov
  • V.V. Ponkratov
  • D.A. Smirnov
  • N.E. Kotova

Abstract

The article considers the issues of the relationship between business investment activities and the economic and social development of the regions. Based on the statistical data analysis it is shown that the decrease in investment activities negatively affects all key indicators of regional development after a short period of time. The current level of the regional investment activities can be characterized as unsatisfactory and preventing from achieving the declared goals of the development of the Russian Federation. The paper shows that a peculiarity defining Russian economy is that its significant part is actually controlled by natural monopolies. At the same time, they themselves are strongly sensitive to all the problems of socioeconomic development of the country's territories and, therefore, are parties concerned in ensuring sustainable and qualitative growth of regional economies. Today many of the natural monopolies implement large-scale investment programs with allocated substantial resources. The analysis of these investment programs showed that they all contain components that contribute to the development of the region where the manufacturing facilities or transportation capacities of these companies are located. It is concluded that a systemic state investment policy aimed at stimulating real investments, rather than "portfolio" ones, is required to address the problem of sustainable economic growth. Moreover, when drawing up investment programs for natural monopolies and regional development plans, it is important to coordinate all these plans, to reconcile state strategic planning with regional development programs, and those with the development programs for natural monopolies and regional businesses. It is proposed to amend the legislation governing the processes of strategic planning at the regional and federal levels aimed at optimization of the state investment planning system and encouragement of the private sector participation in regional investments.

Suggested Citation

  • S.N. Silvestrov & N.V. Kuznetsov & V.V. Ponkratov & D.A. Smirnov & N.E. Kotova, 2018. "Investment Development of Russian Regions Backed up by Natural Monopolies," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 89-99.
    • Handle: RePEc:ers:journl:v:xxi:y:2018:i:3:p:89-99
    as

    Download full text from publisher

    File URL: https://www.ersj.eu/dmdocuments/2018_XXI_3_7.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Emmanuelle Auriol & Pierre M. Picard, 2009. "Government Outsourcing: Public Contracting with Private Monopoly," Economic Journal, Royal Economic Society, vol. 119(540), pages 1464-1493, October.
    2. Sebastian Nick & Heike Wetzel, 2016. "The hidden cost of investment: the impact of adjustment costs on firm performance measurement and regulation," Journal of Regulatory Economics, Springer, vol. 49(1), pages 33-55, February.
    3. Claire S. H. Lim & Ali Yurukoglu, 2018. "Dynamic Natural Monopoly Regulation: Time Inconsistency, Moral Hazard, and Political Environments," Journal of Political Economy, University of Chicago Press, vol. 126(1), pages 263-312.
    4. Sebastian Nick & Heike Wetzel, 2016. "The hidden cost of investment: the impact of adjustment costs on firm performance measurement and regulation," Journal of Regulatory Economics, Springer, vol. 49(1), pages 33-55, February.
    5. Ioannis N. Kessides, 2005. "Infrastructure Privatization and Regulation: Promises and Perils," The World Bank Research Observer, World Bank, vol. 20(1), pages 81-108.
    6. Andrade, Tiago, 2014. "The impact of regulation, privatization and competition on gas infrastructure investments," Energy, Elsevier, vol. 69(C), pages 82-85.
    7. Rudiger Ahrend & William Tompson, 2005. "Unnatural Monopoly: The Endless Wait for Gas Sector Reform in Russia," Europe-Asia Studies, Taylor & Francis Journals, vol. 57(6), pages 801-821.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. V. Ponkratov & A. Karaev & S. Solyannikova & O. Gorlova & D. Smirnov & O. Makashina, 2018. "Impact of Fiscal, Monetary and Structural Economic Policies on the Growth Rates of Leading Economies: 2000-2016," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 333-343.
    2. E.M. Akhmetshin & A.V. Pavlyuk & V.V. Ling & D.V. Medovnikova & R.H. Azieva, 2018. "Innovative Intellectual Property Products: The Case of Russian Federation," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 303-316.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dakpo, K Hervé & Lansink, Alfons Oude, 2019. "Dynamic pollution-adjusted inefficiency under the by-production of bad outputs," European Journal of Operational Research, Elsevier, vol. 276(1), pages 202-211.
    2. Engida, Tadesse Getacher & Rao, Xudong & Oude Lansink, Alfons G.J.M., 2020. "A dynamic by-production framework for analyzing inefficiency associated with corporate social responsibility," European Journal of Operational Research, Elsevier, vol. 287(3), pages 1170-1179.
    3. Yang, Xinhe & Wang, Xiuli & Lu, Zhilin & Liang, Ziyang & Gu, Chenghong & Li, Furong, 2024. "Distribution network tariff design: Facilitate flexible resource under uncertain future energy scenarios," Energy Policy, Elsevier, vol. 188(C).
    4. Johnstone, David & Havyatt, David, 2022. "Sophistry and high electricity prices in Australia," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 88(C).
    5. Rudiger Ahrend, 2006. "Russian Industrial Restructuring: Trends in Productivity, Competitiveness and Comparative Advantage," Post-Communist Economies, Taylor & Francis Journals, vol. 18(3), pages 277-295.
    6. Cherchye, Laurens & De Rock, Bram & Kerstens, Pieter Jan, 2018. "Production with storable and durable inputs: Nonparametric analysis of intertemporal efficiency," European Journal of Operational Research, Elsevier, vol. 270(2), pages 498-513.
    7. Dementiev, Andrei & Han, Hyen Jin, 2020. "A theory of deregulation in public transport," Research in Transportation Economics, Elsevier, vol. 83(C).
    8. Brucal, Arlan & Tarui, Nori, 2021. "The effects of utility revenue decoupling on electricity prices," Energy Economics, Elsevier, vol. 101(C).
    9. Jos van Bommel & Jose Penalva, 2012. "The Governance of Perpetual Financial Intermediaries," DEM Discussion Paper Series 12-10, Department of Economics at the University of Luxembourg.
    10. Camilo Hernández & Dylan Possamaï, 2024. "Time‐inconsistent contract theory," Mathematical Finance, Wiley Blackwell, vol. 34(3), pages 1022-1085, July.
    11. Antonio Estache & Tomas Serebrisky & Liam Wren-Lewis, 2015. "Financing infrastructure in developing countries," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 31(3-4), pages 279-304.
    12. Guthrie, Graeme, 2020. "Regulation, welfare, and the risk of asset stranding," The Quarterly Review of Economics and Finance, Elsevier, vol. 78(C), pages 273-287.
    13. Gilles Edouard Espinosa & Caroline Hillairet & Benjamin Jourdain & Monique Pontier, 2013. "Reducing the debt : is it optimal to outsource an investment?," Papers 1305.4879, arXiv.org, revised Jun 2015.
    14. Marina Tsygankova, 2007. "The Export of Russian Gas to Europe: Breaking Up the Monopoly of Gazprom," Energy and Environmental Modeling 2007 24000062, EcoMod.
    15. Liu Yao & Mukherjee Arijit, 2024. "Lobbying for Tariff Protection, International Technology Licensing and Consumer Surplus," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 24(1), pages 117-139, January.
    16. Marina Tsygankova, 2008. "Netback pricing as a remedy for the Russian gas deficit," Discussion Papers 554, Statistics Norway, Research Department.
    17. Victor Aguirregabiria & Allan Collard-Wexler & Stephen P. Ryan, 2021. "Dynamic Games in Empirical Industrial Organization," NBER Working Papers 29291, National Bureau of Economic Research, Inc.
    18. Alan Gilbert, 2007. "Water for All: How To Combine Public Management with Commercial Practice for the Benefit of the Poor?," Urban Studies, Urban Studies Journal Limited, vol. 44(8), pages 1559-1579, July.
    19. Auriol, Emmanuelle & Blanc, Aymeric, 2009. "Capture and corruption in public utilities: The cases of water and electricity in Sub-Saharan Africa," Utilities Policy, Elsevier, vol. 17(2), pages 203-216, June.

    More about this item

    Keywords

    state investment policy; natural monopolies; investment activity; government regulation; development programs; regional economy; regional development; real investment promotion; strategic planning;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xxi:y:2018:i:3:p:89-99. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.