An Industrial Region in Russia: Factors of Growth and Development

Abstract

The Russian economy is based, first of all, on industrial production. In the majority of regions the share of an industrial product in a gross regional product significantly exceeds 75-80%. Steady growth of regions often depends on the industrial sector. The Ural region is not an exception. Historically the region always was an industrial one.The article's purpose is to analyse possible sources of the Ural region growth. The analysis methodology is based on creation of nonlinear econometric function where labor and capital resources act as regressors. Besides, we make a hypothesis of possible influence of the bank crediting to real capital. We add this indicator in the function as the third regressor. After the creation of the econometric function we can answer what factor (the human capital, investments into real capital or volumes of the crediting to real capital) is main.