Development of Prospective Economic Specializations as a Condition for Regional Economic Growth

Abstract

Introduction. In the new economic conditions caused by the sanctions pressure, the Russian economy needs new sources of growth. Economic specializations in Russian regions, which are understood as prospective sectoral priorities and types of economic activity, can act as a source of revitalizing economic dynamics revival. Geopolitical turbulence and the associated focus on the development of the domestic market have led to additional attention from researchers and experts to the study of the economic specializations of Russian subjects. The objective of this study is to substantiate the development of economic specializations in the regional economy, acting as a condition for its growth. Materials and Methods. Using the materials of the Vologda Region, the export-oriented region of the Northwest, the list of economic specialization, the development of which is promising from the point of view of long-term economic growth, was formulated. The main sources of information are Rosstat data and input-output tables for the Vologda Region. The economic specializations for the region are primarily based on studies that focus on identifying and developing economic specialization in Russian regions. The use of input-output modeling methodology has allowed to determine the impact on the regional economy of extending the value chain in the timber industry due to increased domestic demand for wood products. Results. Based on the analysis of the dynamics of industrial production in the Vologda Region, it was revealed that the Vologda Region is among the regions that have felt the impact of the sanctions. Вased on the approaches of the authors engaged in the search for promising economic specializations of the region, it is established that the timber industry and tourism can act as such. The results of the input-output modeling are shown that stimulating consumer demand for woodworking products has a significant impact on the growth of a region’s economy. This demand is driven by the needs of the tourism sector. The calculations were performed in determining the significance of promoting projects for the development of hotels utilizing CLT panel-based technologies in the region. Discussion and Conclusion. In the study, it was determined that stimulating demand for the production of deep processing of wood (houses from CLT panels) would have a significant impact on the growth of the regional economy, ensuring an increase in the production of goods and services, the wage fund and the number of employed. It was also shown that the development of proposed economic specializations in the Vologda Region is promising and allows for the concentration of added value within the region, which is particularly important for the development of the domestic market. For the regional authorities, the interest lies in the possibility of obtaining a quantitative assessment of the development of economic specializations on their territory, which can be used by them in the improvement of economic policy.