Effectiveness of the Russian Far East Regulation Tools

Abstract

The article presents an econometric analysis of the current set of government regulation tools in order to assess their socio-economic effect for the development of the Far East (preferential business regimes, measures of budgetary and tax support for priority industries). The study is based on a combination of quantitative methods (regression and correlation analysis, modeling, method of means, index method, difference-in-differences method, factor analysis) and qualitative methods (document analysis, case study, benchmarking, classification, and SWOT-analysis). As a result, an index of the Far East socio-economic development is proposed. Moreover, it is revealed that the federal regulation of the Far East development after 2014 produces a multiplier effect and, in general, has a positive impact. Some of the managerial tools (e.g. territories of advanced development) had no significant influence, which is explained by both miscalculations in regulation and a delayed effect. Forecasting showed that in the medium term, the most likely for the Russian Far East is the scenario of moderate growth. The research allowed formulating proposals to improve the efficiency of regulation. First, the sectoral tools should be integrated to provide comprehensive spatial regulation. Second, each tool should provide for the possibility of statistical evaluation. Third, it is necessary to justify the introduction of new instruments and monitor the achievement of the stated goals for them. Forth, monitoring should be carried out not only for the instruments in action, but also after their completion.