MEASURING THE POTENTIAL OF ECONOMIC DEVELOPMENT OF THE SVERDLOVSK REGION BASED ON COMPARATIVE ADVANTAGES
Keywords:revealed comparative advantage, the Balassa index, the Lafay index, Russian regions, economic development, Sverdlovsk region
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.
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