Development of rural economy diversification trends in Russian regions considering small town potential

Abstract

Nowadays the rural economy diversification is one of the main rural development strategies in foreign countries. The diversification of rural economy is also suggested in Russia to solve such challenges as rural employment, the increase of living standards, rational use of rural resource. The authors emphasize that potential of small towns is a new relevant platform for socio-economic development of rural areas. The main idea of the article is to specify the conceptual framework of rural economy diversification and to analyze its possibilities taking into account the potential of small towns in three subjects of the Russian Federation (Tula, Vladimir regions and Perm Krai). Dialectical method, formal-logical method and statistical method have been used in the present paper.  The analysis of the sectoral structure of the gross regional product has revealed the increasing share of the non-agricultural branches of the economy that is one of the indicators of rural economy diversification. It should be noticed that the production of different kinds of agricultural raw materials is one of the diversification trends, particularly in regions with favorable climate. The strategies and directions of rural economy diversification and possible linkages between small towns and surrounding rural areas have been described in the article. The authors stress that it’s necessary to consider competitive advantage, industrial, resource and recreational potential of small towns and rural areas to strengthen the network interaction. To stimulate economic progress in rural areas it’s necessary to diversify agriculture and non-agricultural activities. As the result all these measures can enhance the multiplier effect of regional economy. Further studies in this field will concern the development of toolkit to estimate the level of rural economy diversification.

Keywords

small towns, rural areas, resource potential, sustainable development, diversification, agriculture, the gross regional product

For citation

Sheresheva M.Yu., Oborin M.S., Shimuk O.V. Development of rural economy diversification trends in Russian regions considering small town potential. Perm University Herald. Economy. 2017, vol. 12, no. 4, pp. 632–648. DOI 10.17072/1994-9960-2017-4-632-648

Acknowledgements

The article was prepared with the financial support of the Russian Science Foundation, No. 17-18-01324 “Sustainable development of the territory economy based on network interaction between towns and district centres”.

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