Abstract

The spatial organization of productive forces, the efficient use of available facilities, and the production potential assessment of economic sectors in a given region are topical issues. The Republic of Sakha (Yakutia) is a large resource-dependent region of Russia, remarkable for the geographical dispersion of deposits over a vast territory and the complex transport and power supply infrastructures. This paper presents a comprehensive assessment of the feasibility of cluster organization in the subsoil use sector in the Republic of Sakha (Yakutia), the Russian Federation, factoring in the existing and prospective economic zoning and the existing potential. The republic was divided into zones based on a cluster framework of the subsoil users. The study used statistical data on the municipal districts and financial indicators of the extractive industry companies. The integrated method was applied in the assessment, and the performance index of the identified cluster territories was calculated on a ten-point scale. The identified zones were rated by resource and production potential. The general cluster zone performance index was calculated. It appeared feasible to cluster the extractive industry in the studied region as it can increase competitiveness of local companies and contribute to the socio-economic development of its municipal districts. The proposed method can be applied for comprehensive assessment of the subsoil use sector in northern territories.

Highlights

  • In Russia, the resource-based industry of northern regions focusing on subsoil use has developed in a historical manner, including over a long period of planned national economy

  • The purpose of this work is to make a comprehensive assessment of the feasibility of cluster organization of the subsoil use sector, in the Republic of Sakha (Yakutia), the Russian Federation, factoring in the existing and prospective economic zoning and the existing potential

  • The spatial formation and development of the regional extractive economy in the RS(Ya) is based on the cluster organization of subsoil use, which is a new form of production relations between the economic structures, consisting of the large companies and the transport and power supply infrastructure

Read more

Summary

Introduction

In Russia, the resource-based industry of northern regions focusing on subsoil use has developed in a historical manner, including over a long period of planned national economy. The huge costs associated with the exploration and reclamation of remote northern areas were compensated by the cross-subsidy mechanisms embracing the entire country. Among other things, it ensured the economic clustering of the regions, large industrial areas, industries and enterprises involved in the reproduction of the aggregate added value. In the northern regions, in the absence of nationwide cross-subsidy mechanisms, the economic efficiency of subsoil use naturally decreased due to insufficient involvement in the value chains In this regard, it is relevant to study the optimal spatial organization of productive forces (including clusters) and endeavor to improve the accuracy of assessment of the production potential of economic sectors

Objectives
Results
Discussion
Conclusion
Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call