Development Trends of Regional Economies in Russia

Abstract

The expert community  is actively working to determine the depth of the consequences for the domestic economy of large-scale sanctions pressure. One of the directions of such an analysis is the assessment of the situation in the social sphere and in the real sector of the economies of the constituent entities of the Russian  Federation.  It is obvious that the differences in the levels of development  of regional economies; varying degrees of depth of their immersion  in world economic relations; the volume of regional budget revenues received from the activities of foreign companies located on their territory and other factors will predetermine the amount of damage inflicted on Russian  regions. To minimize  its magnitude  and, most importantly, to develop  a viable  strategy for overcoming  the crisis,  it is not enough  to fix the scale of losses. An effective  strategy requires foresight,  and  it is impossible without  understanding the nature and direction of trends in the development  of regional economies, at least in the medium term. This article proposes one of the possible options for the methodology to answer these questions. The authors believe the approach is quite correct, because the trends in the development of the economies of the constituent entities of the Russian Federation were studied based on an analysis of the situation that took place during the pandemic.  The first version of the methodology  was tested in 2021 and presented in issue 4 of the journal Federalism. Below  is a refined version of the methodology, the use of which  gave more reliable results.