Assessment of the economic development of small towns based on the town as a quasi-corporation approach
Loginov S.V.1, Koroleva E.N.1
1 Самарский государственный экономический университет
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Journal paper
Journal of Economics, Entrepreneurship and Law (РИНЦ, ВАК)
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Volume 14, Number 11 (November 2024)
Indexed in Russian Science Citation Index: https://elibrary.ru/item.asp?id=76099369
Abstract:
The need to manage spatial transformations, taking into account the tasks set to ensure Russia's economic security, emphasizes the development of small towns. In order to achieve the research goal, which consists in assessing the level of economic development of small towns, as well as identifying the factors limiting it, based on the application of the conceptual approach "town as a quasi-corporation", a special methodology was developed.
The methodology suggests to apply the managerial approach of the theory of constraints. Within the framework of the methodology implemented for a sample of small towns of the Volga Federal District for the period 2017-2022, an index of structural differences was applied.
An integral index of economic development, which allowed to group small towns according to their values, was calculated.
It was found out that the population is a limiting factor (bottleneck) in the economy of a small town. Studying the dynamics of the average number of employees in organizations, it was proved that the able-bodied population leaves small towns in search of conditions for the development of their potential, and the growth of wages does not improve their economic situation. It is concluded that labor resources remain the main factor determining the productivity of the small town economy. The results of the integrated assessment of the economic development of small towns of the Volga Federal District show a slowdown in the growth of their economy. This is indicated by the results of grouping - the predominance of groups of small towns in terms of below-average level of development and low level of development, and the relative preservation of the composition of these groups over a five-year period.
According to the research, small towns fall into more dynamic development groups indicates the existing potential of the urban economy, which requires the development of unique development strategies.
Keywords: small town, quasi-corporation, theory of constraints, economic development assessment, Volga Federal District
JEL-classification: R11, R12, R13, R58
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