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Economic Dynamics of Russian Regions: Crises and Ways to Restore Growth

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  • N. N. Mikheeva

    (Institute of Economic Forecasting, Russian Academy of Sciences)

Abstract

The article considers the main features of the economic crises of 1998, 2009, and 2015; analyzes the dynamics of the main indicators of regional socioeconomic development in crisis conditions and at its terminal stage. It is shown that all crises are caused by structural factors: imbalances in the sectoral structure, weak financial sector, and weak institutions. An export-oriented model of the economy has proved unstable to external shocks. In all cases, the crisis-related decline began with the regions that most dependent on the external economic situation, with metropolitan areas and oil and gas producing regions. However, a deeper decline in production and slow economic recovery were observed in regions oriented toward domestic Russian demand. After the 2009 crisis, the range of fluctuations in growth rates decreased in all federal districts. The decline in production during the crisis has become smaller; however, the subsequent rise has not been high. The article assesses the impact of national trends and regional features of the production structure on regional economic dynamics. It is shown that crisis conditions amplify interregional differentiation of growth rates and the value of regional factors increases. The contribution of regional factors determines the stability of the economy to crisis-related shocks. The shares of the distribution of income between households and businesses are considered, since a change in these determines consumer and investment demand dynamics. It is shown that revenue redistribution in favor of business is not a factor in investment growth. The regional structure of investment demand is not directly related to the regional structure of business revenue. A peculiarity of the 2015 crisis is that adaptation of final demand to external shocks and depreciation of the ruble after devaluation occurred by contraction of both investment and consumer demand. The real sector of the economy shows the greatest resilience to the crisis; precrisis industrial indicators in 2018 were exceeded in all federal districts.

Suggested Citation

  • N. N. Mikheeva, 2020. "Economic Dynamics of Russian Regions: Crises and Ways to Restore Growth," Regional Research of Russia, Springer, vol. 10(1), pages 1-9, January.
    • Handle: RePEc:spr:rrorus:v:10:y:2020:i:1:d:10.1134_s2079970520010062
    DOI: 10.1134/S2079970520010062
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    References listed on IDEAS

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    1. N. V. Zubarevich, 2016. "Crises in post-Soviet Russia: Regional projection," Regional Research of Russia, Springer, vol. 6(2), pages 95-104, April.
    2. Akindinova, Natalia & Kuzminov, Yaroslav & Yasin, Evgeny, 2016. "Russia's economy: Before the long transition," Russian Journal of Economics, Elsevier, vol. 2(3), pages 219-245.
    3. Zubarevich, N., 2015. "Spatial Strategy after the Crisis: from the Big Projects to Institutional Modernization," Journal of the New Economic Association, New Economic Association, vol. 26(2), pages 226-230.
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    6. Pavel Aleksandrovich Minakir, 2018. "Russian Crisis: Expectations Against Facts," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 1, pages 7-15.
    7. N. Akindinova & Ya. Kuzminov & E. Yasin., 2016. "Russia’s economy: Before the long transition," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 6.
    8. Dubinin, S., 2015. "Financial Crisis 2014-2015," Journal of the New Economic Association, New Economic Association, vol. 26(2), pages 219-225.
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    Cited by:

    1. N. N. Mikheeva, 2021. "Resilience of Russian Regions to Economic Shocks," Studies on Russian Economic Development, Springer, vol. 32(1), pages 68-77, January.
    2. O. V. Kuznetsova, 2022. "The Transformation of the Spatial Structure of an Economy in the Crisis and Post-Crisis Periods," Regional Research of Russia, Springer, vol. 12(4), pages 451-458, December.

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