MEASURING THE POTENTIAL OF ECONOMIC DEVELOPMENT OF THE SVERDLOVSK REGION BASED ON COMPARATIVE ADVANTAGES

Authors

  • Rogneda Groznykh Graduate School of Economics and Management, Russian Federation
  • Natalia Davidson Graduate School of Economics and Management, Russian Federation
  • Oleg Mariev Ural Federal University, and The Ural Branch of the Russian Academy of Sciences, Russian Federation
  • Daria Chipchagova Graduate School of Economics and Management, Russian Federation
  • Ekaterina Vasilyeva Graduate School of Economics and Management, Russian Federation

DOI:

https://doi.org/10.12955/peb.v1.20

Keywords:

revealed comparative advantage, the Balassa index, the Lafay index, Russian regions, economic development, Sverdlovsk region

Abstract

The goal of this paper is to reveal the key industries of comparative advantage for the Sverdlovsk region in order to make conclusions about the potential of the region’s economic development. We study comparative advantages of the Sverdlovsk region based on data for 85 Russian regions covering the period from 2003 to 2018. During the first stage of the research four groups of goods out of twenty-two groups were identified as those in which the Sverdlovsk region possibly has comparative advantages based on the index of revealed comparative advantages developed by Balassa and on the Lafay index. During the next stage, the existence of comparative advantages in these categories of goods was checked by comparison with the other regions of Russia. According to the results of the research a range of recommendations can be developed to foster economic growth of the Sverdlovsk region.

Author Biographies

Rogneda Groznykh, Graduate School of Economics and Management, Russian Federation

Graduate School of Economics and Management, Ural Federal University, Ekaterinburg, Russian Federation

Natalia Davidson, Graduate School of Economics and Management, Russian Federation

Graduate School of Economics and Management, Ural Federal University, Ekaterinburg, Russian Federation

Oleg Mariev, Ural Federal University, and The Ural Branch of the Russian Academy of Sciences, Russian Federation

Ural Federal University, Graduate School of Economics and Management, Department of Econometrics and Statistics, Ekaterinburg, Russian Federation

Institute of Economics, The Ural Branch of the Russian Academy of Sciences, Ekaterinburg, Russian Federation

Daria Chipchagova, Graduate School of Economics and Management, Russian Federation

Graduate School of Economics and Management, Ural Federal University, Ekaterinburg, Russian Federation,

Ekaterina Vasilyeva, Graduate School of Economics and Management, Russian Federation

Graduate School of Economics and Management, Ural Federal University, Ekaterinburg, Russian Federation

References

Atkin, D., Khandelwal, A. K., Osman, A. (2017). Exporting and firm performance: evidence from a randomized experiment. The Quarterly Journal of Economics, 132(2), 551–615.

Balassa, B. (1965). Trade liberalisation and revealed comparative advantage. The Manchester School of Economic and Social Studies, 33, 99–123.

Delgado, M., Porter, M. E., Stern, S. (2016). Defining clusters of related industries. Journal of Economic Geography, 16(1), 1–38.

Eichengreen, B., Park, D., Shin, K (2013). Growth slowdown redux: New evidence on the middle-income trap. NBER Working Paper, 18673.

Frenken, K., Van Oort, F.G., Verburg, T. (2007). Related variety, unrelated variety, and regional economic growth. Regional Studies, 41 (5), 685–97.

Garanina, O. (2009). What beyond oil and gas? Russian trade specialisation in manufactures. Post-communist economies, 21(1), 1–29, https://doi.org/10.1080/14631370802663596

Jones, R. A. (1971). Three-factor model in theory, trade, and history. trade, balance of payments and growth: Essays in honor of C.P. Kindleberger, Amsterdam, 3–20.

Harrigan J. (1997). Cross-country comparisons of industry total factor productivity: theory and evidence. Federal Reserve Bank of New York.

Hausmann, R., Hwang, J. & Rodrik, D. (2007). What you export matters. Journal of Economic Growth, 12, 1–25 https://doi.org/10.1007/s10887-006-9009-4

Lafay, G. (1992). The measurement of revealed comparative advantages, International Trade Modeling, London: Chapman and Hill, 209–234.

Lyubimov, I. (2019). Russia’s diversification prospects. Russian Journal of Economics, 5, 177–198 https://doi.org/10.32609/j.ruje.5.34753

Melitz, M. (2003) The impact of trade on intra-industry reallocations and aggregate industry productivity. Econometrica, 71, 1695–1725. https://doi.org/10.1111/1468-0262.00467/

Ru-Stat (2020). Exports and imports of the Russian Federation. https://ru-stat.com/

Samuelson, Р. (1971). Ohlin was right. Swedish Journal of Economics, 73, 365-384. https://doi.org/10.2307/3439219

Trefler, D. (1995). The case of the missing trade and other mysteries. American Economics Review, 85(5), 1029–1046.

Trefler, D. (1993). International factor price differences: Leontief was right! Journal of Political Economy, 101(6), 961–987.

Wagner, J. (2019). Effect of international activity on firm performance. IZA World of Labor, 47v2. https://doi.org/10.15185/izawol.47.v2

Williamson, O. (2009). Transaction cost economics: the natural progression. Nobel Prize lecture, December 8, 2009. https://www.nobelprize.org/uploads/2018/06/williamson_lecture.pdf

Zaghini, A. (2003) Trade advantages and specialization dynamics in acceding countries. European Central Bank Working paper 249. https://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp249.pdf

Downloads

Published

2020-11-16

How to Cite

Groznykh, R., Davidson, N. ., Mariev, O. ., Chipchagova, D. ., & Vasilyeva, E. (2020). MEASURING THE POTENTIAL OF ECONOMIC DEVELOPMENT OF THE SVERDLOVSK REGION BASED ON COMPARATIVE ADVANTAGES. Proceedings of CBU in Economics and Business, 1, 62-69. https://doi.org/10.12955/peb.v1.20