IDEAS home Printed from https://ideas.repec.org/a/url/upravl/v10y2019i3p83-93.html

Industrial markets of the Ural region: Economic growth under “new normal”

Author

Listed:
  • Viktor I. BARKHATOV

    (Chelyabinsk State University)

  • Darya S. BENZ

    (Chelyabinsk State University)

Abstract

Regional markets demonstrate a significant slowdown in economic growth and the Ural region is not an exception. The article examines the specificity of the Ural industrial markets. The methodological basis of the research is neoclassical economic theory looking at the dependence of output on the production factors applied in the context of the production function. The authors perform a quantitative research using the econometric tools and construct several regression models. We use the sales growth rate of the regional industrial market as a resulting indicator. Regressors (factors) are growth rates of salary; investments into fixed capital; own and raised funds allocated for investments into fixed capital; short-term and long-term financial investments. The authors describe the trends in the Ural industries. The results show that there is a correlation between growth rates of the industrial markets and growth rates of salary and own funds allocated for investments into fixed capital. The paper concludes about the necessity for the region to move to a new technological level. At the same time, it is also important to develop traditional industries. The region’s potential is high and, therefore, the synergy in the triad “industry–education–science” can stimulate its growth. In addition, at the moment there is an urgent need for cultivating conditions, especially institutional ones, to form a solid layer of medium-sized business in the Ural region.

Suggested Citation

  • Viktor I. BARKHATOV & Darya S. BENZ, 2019. "Industrial markets of the Ural region: Economic growth under “new normal”," Upravlenets, Ural State University of Economics, vol. 10(3), pages 83-93, July.
    • Handle: RePEc:url:upravl:v:10:y:2019:i:3:p:83-93
    DOI: 10.29141/2218-5003-2019-10-3-8
    as

    Download full text from publisher

    File URL: http://upravlenets.usue.ru/images/79/8.pdf
    Download Restriction: no
    File URL: http://upravlenets.usue.ru/en/issues-2019/571
    Download Restriction: no
    File URL: https://libkey.io/10.29141/2218-5003-2019-10-3-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Yakova Silin & Yevgeniy Animitsa & Natalya Novikova, 2016. "New Normal in Russian Economy: Regional Specificity," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(3), pages 714-725.
    3. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    4. Sergey D. BODRUNOV, 2018. "Advanced Development Territories as the Crucial Condition for Russia’s Economic Growth: The Case of the Ural Region," Upravlenets, Ural State University of Economics, vol. 9(1), pages 2-7, February.
    5. Rebelo, Sergio, 1991. "Long-Run Policy Analysis and Long-Run Growth," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 500-521, June.
    6. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    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. Prof. Dr. Adem KALCA & Resc. Assist. Atakan DURMAZ, 2012. "Diaspora As The Instrument Of Humane Capital," International Journal of Business and Social Research, LAR Center Press, vol. 2(5), pages 94-104, October.
    2. Carine Nourry, 2012. "Dasgupta, D.: Modern growth theory," Journal of Economics, Springer, vol. 105(1), pages 97-100, January.
    3. Matthias Firgo & Peter Mayerhofer, 2015. "Wissens-Spillovers und regionale Entwicklung - welche strukturpolitische Ausrichtung optimiert des Wachstum?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 144, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    4. Sushil Kumar Haldar, 2009. "Economic Growth in India Revisited," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 10(1), pages 105-126, January.
    5. Mariusz Próchniak & Bartosz Witkowski, 2006. "Modelowanie realnej konwergencji w skali międzynarodowej," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 10, pages 1-31.
    6. Achuo, Elvis & Nchofoung, Tii & Asongu, Simplice & Dinga, Gildas, 2021. "Unravelling the Mysteries of Underdevelopment in Africa," MPRA Paper 111556, University Library of Munich, Germany.
    7. Adriana Di Liberto, 2007. "Convergence and Divergence in Neoclassical Growth Models with Human Capital," Economia politica, Società editrice il Mulino, issue 2, pages 289-322.
    8. Ikonen, Pasi, 2010. "Effect of finance on growth through more efficient utilization of technological innovations," Bank of Finland Research Discussion Papers 21/2010, Bank of Finland.
    9. Schilirò, Daniele, 2006. "Crescita economica, conoscenza e capitale umano. Le teorie e i modelli di crescita endogena di Paul Romer e Robert Lucas [Economic growth, knowledge and human capital. Theories and models of endoge," MPRA Paper 52435, University Library of Munich, Germany.
    10. Sedat Alataş & Erkam Sarı, 2021. "An Empirical Investigation on Regional Disparities in Public Expenditures: Province Level Evidence from Turkey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(1), pages 217-240, November.
    11. repec:ebl:ecbull:v:2:y:2002:i:1:p:1-15 is not listed on IDEAS
    12. Ayres, Robert U, 2001. "The minimum complexity of endogenous growth models:," Energy, Elsevier, vol. 26(9), pages 817-838.
    13. Singh, Tarlok, 2010. "Does domestic saving cause economic growth? A time-series evidence from India," Journal of Policy Modeling, Elsevier, vol. 32(2), pages 231-253, March.
    14. Gene M. Grossman & Elhanan Helpman, 1994. "Endogenous Innovation in the Theory of Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 23-44, Winter.
    15. Zuzana Machová & Igor Kotlán, 2013. "Interakce zdanění, vládních výdajů a ekonomického růstu: panelový VAR model pro země OECD [Interaction of Taxation, Government Expenditure and Economic Growth: Panel VAR Model for OECD Countries]," Politická ekonomie, Prague University of Economics and Business, vol. 2013(5), pages 623-638.
    16. Xavier Sala-i-Martin, 2002. "15 Years of New Growth Economics : What Have we Learnt?," Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 5(2), pages 5-15, August.
    17. Diego Romero-Ávila, 2013. "Is Physical Investment The Key To China'S Growth Miracle?," Economic Inquiry, Western Economic Association International, vol. 51(4), pages 1948-1971, October.
    18. Paul Lau, Sau-Him, 1999. "I(0) In, integration and cointegration out:: Time series properties of endogenous growth models," Journal of Econometrics, Elsevier, vol. 93(1), pages 1-24, November.
    19. Georgios Karras, 1999. "Taxes And Growth: Testing The Neoclassical And Endogenous Growth Models," Contemporary Economic Policy, Western Economic Association International, vol. 17(2), pages 177-188, April.
    20. Capolupo, Rosa, 2009. "The New Growth Theories and Their Empirics after Twenty Years," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-72.
    21. Sadia Bader, 2006. "Determining Import Intensity of Exports for Pakistan," SBP Research Bulletin, State Bank of Pakistan, Research Department, vol. 2, pages 363-381..

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

    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:url:upravl:v:10:y:2019:i:3:p:83-93. 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: Victor Blaginin (email available below). General contact details of provider: https://edirc.repec.org/data/usueeru.html .

    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.