Reasons of the priorities of economic policy based on the structural analysis of gross regional product (in the case study of Perm Krai)

Abstract

The structural analysis of gross regional product (GRP) of Perm Krai has been conducted. The GRP has been calculated using income and expenditure approaches to determine the influence of each of its components on the growth rate of generalized indicator. The significant statistical discrepancy of GRP values, calculated with different methods, has been revealed. The GRP calculated using the expenditures approach is characterized by the greater range of fluctuation than the gross added value and the GRP calculated using the income approach. The reason of the discrepancy has been determined. It is the incomplete disclosure of interregional relations at the regional level. The authors have highlighted the challenges that arose when calculating the values, including the resulting simplification of the methods of calculation of macroeconomic indicators at regional level that are quite substantial to regions, including Perm Krai. Based on the sensitivity analysis and the results of the correlation analysis the authors have identified factors that have the significant effect on the rate of economic growth in the region. Correlation analysis has shown the high dependence of the GRP on consumer spending both in Perm Krai and in Russia. Empirical analysis has allowed to substantiate the main directions of regional economic policy and to identify the instruments of public administration. The use of these instruments together with the methods affecting the salary range, stimulating consumer demand, investment and government spending will allow the government of Perm Krai to influence economic growth in the region.

Keywords

economic growth, regional economy, gross regional product, gross added value, sensitivity analysis, correlation analysis, economic policy

For citation

Miroliubova T.V., Voronchikhina E.N. Reasons of the priorities of economic policy based on the structural analysis of gross regional product (in the case study of Perm Krai). Perm University Herald. Economy, 2017, vol. 12, no. 1, pp. 91–109. DOI 10.17072/1994-9960-2017-1-91-109

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