Subject. The article explores the economic development of border regions. Objectives. The study aims to substantiate the application of the integral position index of border regions in econometric estimates of regional development factors based on the analysis of panel data. Methods. The study rests on economic and statistical methods of regional economy research, the neoclassical theory of economic growth, and methods of synthesis, analysis, and generalization. Results. The study shows that using the index enables to increase the effectiveness of econometric estimates when investigating various relationships and factors describing the economic development of border regions. The results of the panel data assessment made it possible to substantiate the conclusion that in order to identify factors affecting the economic development of border regions, it is necessary to analyze panel data designed specifically for border regions. Conclusions. Factors of regional economic development are different for internal regions and for cross-border ones. The calculations helped verify that the border situation does not just affect the economic development of Russian border regions, but has a differentiated effect depending on the length of the State border coinciding with the administrative border of a particular subject of the Federation, combined with the saturation of the cross-border infrastructure.
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