Journal of Applied Economic Research
ISSN 2712-7435
Influence of Homogeneous Goods Market Dynamics on the Resilience of the Regional Economy
Baskakova I.V., Oborin O.A.
Abstract
The research is devoted to the identification and assessment of the impact of homogeneous goods market development on the resilience of the regional economy. The problem of ensuring the resilience of the Russian regions’ economy remains one of the most acute consequences of continuous real income reduction, the pressure of sanctions and general macroeconomic uncertainty. Homogeneous goods markets, in turn, have unique features, such as stable prices and output of firms that do not depend on fluctuations in demand, due to which homogeneous goods markets may improve the stability of the region’s economy. These features of homogeneous goods markets are substantiated by authors’ modification of the standard Stackelberg oligopoly model. It has been improved by adding the conditions of heterogeneity of firms and incompleteness (absence) of information about the internal characteristics of competitors. The econometric testing of the hypothesis that the development of homogeneous goods markets improves the stability of a regional economy through the reduction of inflation and unemployment and by increasing the gross regional product was performed. For testing, we compiled a gross annual output volume database of the main types of industrial activities and the largest enterprises of 10 regions of the “Big Urals”. On the one hand, testing has shown that an increase in the output of homogeneous product markets (sectors) leads to a decrease in inflation and unemployment in the region. On the other hand, there is an “optimal” level of the homogeneous goods markets’ share in the gross regional product, the excess of which can lead to a decrease in the gross regional product. For the study sample, this level is 31%, and its excess may indicate the necessity of diversification of the regional economy in order to increase the output of heterogeneous goods industries. A further area of research is the expansion of the sample to cover all regions of Russia and the assessment of the influence of the homogeneous goods market on other factors of the regional economy’s resilience.
Keywords
homogeneous good market; economy resilience; regional economy; gross regional product; consumer price index; unemployment level; panel regression; inflation; econometric model; incomplete information; heterogeneous market.
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About Authors
Baskakova Irina Vladimirovna – Candidate of Economic Sciences, Associate Professor, Department of Economics, Graduate School of Economics and Management, Ural Federal University named after the first President of Russia B.N. Yeltsin, Ekaterinburg, Russia (620002, Ekaterinburg, Mira street, 19); e-mail: ibaskakova@rambler.com.
Oborin Oleg Andreevich – Leading Economist of Ural Main Branch of the Central Bank of the Russian Federation, Master of Economics, Post-Graduate Student, Department of Economics, Graduate School of Economics and Management, Ural Federal University named after the first President of Russia B.N. Yeltsin, Ekaterinburg, Russia (620002, Ekaterinburg, Mira street, 19); e-mail: oborin.oleg@gmail.com.
For citation
Baskakova I.V., Oborin O.A. Influence of Homogeneous Goods Market Dynamics on the Resilience of the Regional Economy. Bulletin of Ural Federal University. Series Economics and Management, 2019, Vol. 18, No. 2, 268-290. DOI: 10.15826/vestnik.2019.18.2.014
Article info
Received March 20, 2019; Accepted April 10, 2019.
DOI: http://dx.doi.org/10.15826/vestnik.2019.18.2.014
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