Limited Opportunities for Financing Projects in the Field of Industry 4.0 and Combating Climate Change in the Regions of Russia in the Face of Budget Shortages

Purpose: the purpose of the research is to study the limited possibilities of financing projects in the field of industry 4.0 and the fight against climate change in the regions of Russia in the face of budget shortages amid the pandemic and the COVID-19 crisis, as well as to determine the optimal budget conditions for financing these projects. Design/methodology/approach: in order to determine the most accurate and reliable dependencies of the volume and financing of projects in the field of industry 4.0 and the combat against climate change on the balance of the regional budget, this research is carried out on the basis of two samples of regions of Russia, formed according to the criterion of the regional budget balance in the context of a pandemic and COVID-19 crisis in 2020: with a budget surplus and deficit. Findings: the results of the research showed that the financing of projects in the field of industry 4.0 and the fight against climate change in the regions of Russia, firstly, is significantly determined by the balance of the regional budget. Secondly, it is characterized by various laws: financing of projects in the field of industry 4.0 is scarce both with a deficit and a budget surplus, and financing of projects in the field of combating climate change in the regions of Russia is scarce with a budget deficit and enough with a budget surplus. Originality/value: differences in the conditions of optimal budget balances are justified: with a zero regional budget balance, the point of optimal (deficit-free) financing of these projects is reached, and a confident regional budget surplus forms the zone of optimal financing of climate change projects in the regions of Russia. © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2022.

The New Great Depression in the Context of Coronavirus Pandemic: A Test of Keynesian Theory for Russian Regions

J.M. Keynes is the author of the economic model which made it possible to overcome the Great Depression in the United States. The cornerstone of the theory is income. The regulatory measures of J.M. Keynes start from the fact that the behavior of the population in the long and short term is different. Using the data on the income of the population in the regions of Russia before the crisis and during crisis periods (caused by the coronavirus pandemic) of 2018–2020, the authors test a hypothesis connected with the transformation of behavior models. In particular, the issue of changes in the proportions of savings and consumption of the population in the regions of Russia was studied. To confirm the hypothesis defined in the study, the clustering of regions was carried out, which allows us to draw conclusions about the isolation of more homogeneous groups of regions. The identified five clusters allow us to fully determine the main trends of consumer behavior and confirm the hypothesis set in the study. The results obtained allow us to speak about the relevance of the application of J.M. Keynes’ approaches to this crisis situation. It is also important to speak about the possibility of further research of the policy proposed at the moment which deals with the issues facing the global economy. The calculation of the ratio of the marginal and average consumption rate makes it possible to use the tools of the US economic policy of the early 20 th century in the modern social and economic reality. Using this research, the trends were identified and new threats associated with the virtualization of the economy were identified, which can become a kind of a trigger for a new Great Depression. The most important tasks at the moment are a deep fundamental study and description of the patterns of development of regional economic systems of various types and an analysis of the impact of various negative factors and shocks on their dynamics.Alternate : Дж.Ðœ. Кейнса принято считать автором экономической модели, позволившей преодолеть Великую депрессию в США. Краеугольным камнем теории является доход. Регуляционные меры Дж.Ðœ. Кейнса исходили из того, что поведение населения в долгосрочном и краткосрочном периодах отличается. По данным о доходах населения в регионах России докризисного и кризисного (вызванного пандемией коронавируса) периодов 2018–2020 гг. авторы тестируют гипотезу, связанную с трансформацией моделей поведения. Ð’ частности, исследовался вопрос изменения пропорций сбережения и потребления, осуществляемых населением регионов России. Для подтверждения поставленной в исследовании гипотезы проведена кластеризация, позволяющая сделать выводы относительно более однородных групп регионов. Выделенные пять кластеров позволяют в полной мере определить основные векторы потребительского поведения и подтвердить поставленную в исследовании гипотезу. Полученные результаты позволяют говорить об уместности применения подходов Дж.Ðœ. Кейнса к данной кризисной ситуации, а также о возможности дальнейшего исследования политики, предлагаемой в настоящий момент, для решения во ¿Ñ€Ð¾ÑÐ¾Ð², стоящих перед мировой экономикой. Определение соотношения предельной и средней нормы потребления дает возможность имплементации инструментов экономической политики США начала ХХ в. в современную социально-экономическую реальность. На основе проведенного исследования были определены тренды и выявлены новые угрозы, связанные с виртуализацией экономики, которые могут стать своеобразным триггером новой Великой депрессии. Важнейшими задачами в настоящий момент нам видятся глубокое фундаментальное изучение и описание закономерностей развития региональных экономических систем различных типов, а также анализ влияния различных негативных факторов и шоков на их динамику.

Fiscal resilience of Russia's regions in the face of COVID-19

Purpose The purpose of the study was to analyze how COVID-19 pandemic affects regional budgets and regional fiscal resilience in Russia. Design/methodology/approach The research article is structured as follows. Based on the official data from the Ministry of Finance, the Federal Treasure and the Accounts Chamber of the Russian Federation, first, the state of Russian regional budgets before and under COVID-19 is analyzed. Second, due to the increase of regional spending commitments under pandemic the regional debt dependence is reviewed. Third, anticrisis fiscal measures which have been taken to combat the negative impact of COVID-19 are discussed. Findings In general, 2020 may be the most difficult for regional budgets, although the results of the first quarter do not show such tension. However, the impact of COVID-19 on budget indicators is ambiguous because the economic crisis of 2020 is dual, including the crisis in the oil markets. The pandemic has become a unique global phenomenon, the effect of which is difficult to identify and interpret outside of the economic aspects of life. Originality/value The value of the article is based on the overview of the state of regional budgets before and under COVID-19, on the analysis of how pandemic affects fiscal resilience of the regional budgets and on the forecast of how serious the volume of lost revenues are going to be.

Comparative Analysis of Trends in Housing Development in Russian Regions

Construction is a key sector of the national economy, one that is inextricably linked to all other sectors. Apparently, it would be difficult to incentivize better education, extend life expectancy, and increase people’s income unless housing shortage and poor conditions are addressed. This study sought to compare the status and issues of growth and improvement in housing development in medium term across Russian regions. Statistical methods of economics were used to verify the official statistics available for 1990–2019. Overview of residential housing commissioned over the period identified four stages of the housing industry’s development in the country. Thus, it was found out that since 2018, as abolition of the Federal Law No. 93-FZ was impending, and amendments were on the way regarding equity construction with use of escrow accounts, people started to commission more and more detached houses. 56% of all detached houses were commissioned in rural areas. Overall, cities account for 70% of new residential construction, rural areas for 30%. Housing construction varies from region to region depending on how developed the local investment and construction infrastructure is as well as on transport accessibility, income, and purchasing power of the locals. All these factors as well as the persistent sanctions, Russia’s actual isolationism in global politics, and the global Covid-19 pandemic have been defined and systematized herein as factors that affect the growth and trends in housing development in Russian regions. © 2022, The Author(s), under exclusive license to Springer Nature Switzerland AG.