Advanced Solow Model as a Tool for Coordination of Interests of Spatial Economic Systems’ Development

Abstract

The article presents a dynamic socio-ecological-economic model of the synergistic development of individual entities within the southern Russian macro-region, which allows to coordinate the general and private interests of each region. The maximization of specific consumption is proposed as a target criterion, regarding private interests – for the region, regarding general interests – for the macro-region. The model provides for the possibility of using the available resources of each region, both for solving the problems of its own development, and for the general development goals of other regions as part of the macroregion. The model is investigated using simulation modeling based on materials from the Southern Federal District. There are several debatable conclusions made after the research. Calculations, in particular, show that it is not profitable for any region to develop its own production sector in the current conditions, the optimal strategy for each of them is only to increase consumption in the hope of production activity in neighboring regions. In view of the selection of this rational strategy by all regions at the same time, general degradation of the production sphere and stagnation of the regional economy are forecasted. At the same time, it was revealed that a further reduction in production becomes unprofitable for almost all lagging regions (republics of the Southern Federal District), while inaction remain profitable for leading regions (regions of the Southern Federal District).