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Multialternative Approach to the Mainstream Development Management of Regional Economics

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Proceeding of the International Science and Technology Conference "FarEastŠ”on 2019"

Abstract

The task of flexible, multialternative management of competitive interaction of branches of regional economy is considered with purpose of ensuring its priority preset development. The solution is searched for the case when the mainstream trajectory corresponds to the proportional growth of final consumption of the production of branches, and the operating actions are the investments into branches, where the total amount of investments is limited and control is exercised on the basis of current final consumption deviations from desirable mainstream values. Dynamic model of regional economy was composed based on the equations of intersectoral balance, including the competition of branches for a share in the total investments in the region; other involved factors are the nonequilibrium state between the expenses and release of intermediate commodity caused by the innovative activity of the enterprises and the discrepancy between the supply and demand of final consumption. External influences acting in this model include the investments, final consumption and technological coefficients changing continuously as a result of innovative activity. Internal influences characterizing the situation in the regional economy selected as internal variables are the gross output of all branches, final consumption, expenses of intermediate production. The parameters of a model are, among others, the multipliers of the coefficient of gross output, the unrealized demand, the innovative multiplier, limiters of demand for final and industrial consumption. Management of investments is based on the form of functionality from the difference between the desirable and current values of final consumption, containing both the integrated and proportional components. The discrete form of this functionality reflecting the repeatability of actual planning, control, and allocation of the investments was obtained as follows: by the termination time of the current time interval of planning the current economic indicators of regional branches are defined, and on their basis the planned values of the investments into each branch for the next period are obtained. By means of imitating simulation, the working capacity and efficiency are described disclosing the offered mainstream management algorithm.

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Podvalny, S.L., Minakova, N.V., Vasiljev, E.M. (2020). Multialternative Approach to the Mainstream Development Management of Regional Economics. In: Solovev, D.B., Savaley, V.V., Bekker, A.T., Petukhov, V.I. (eds) Proceeding of the International Science and Technology Conference "FarEastŠ”on 2019". Smart Innovation, Systems and Technologies, vol 172. Springer, Singapore. https://doi.org/10.1007/978-981-15-2244-4_10

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