Diversification or Specialization: Development of the Regions of the Far Eastern Federal District
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.
KeywordsDiversification Specialization Gross regional product Herfindahl-Hirschman index
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