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National Interests: Priorities and Security
 

A dynamic approach to evaluating the diversification of the single-industry town economy

Vol. 13, Iss. 3, MARCH 2017

PDF  Article PDF Version

Received: 20 September 2016

Received in revised form: 19 October 2016

Accepted: 16 January 2017

Available online: 29 March 2017

Subject Heading: SUSTAINABLE DEVELOPMENT OF ECONOMY

JEL Classification: R11, R12, R15, R58

Pages: 431-441

https://doi.org/10.24891/ni.13.3.431

Antonova I.S. National Research Tomsk Polytechnic University, Tomsk, Russian Federation
antonovais@tpu.ru

Importance The article proposes a dynamic approach to evaluating the effectiveness of diversification. The approach considers trends in the structure of the single-industry town economy and identifies a correlation of structural change indicators and creating a diversification effectiveness matrix.
Objectives The research provides the rationale for a dynamic evaluation of the diversification effectiveness, systematization of indicators reflecting the structural change in the single-industry town economy, formulates what will make diversification effective, and outlines an approach to evaluating the diversification effectiveness of the single-industry town.
Methods The research applies methods of logic analysis and synthesis, grouping and systematization of data, tools of correlation and regression analysis.
Results I suggest using a dynamic approach to evaluating the diversification effectiveness, identify and systematize indicators of the diversification process and results in relation to the single-industry town, evaluate their trends through the matrix of diversification and correlation and regression analysis. The approach considers indicators of structural changes in the single-industry town through the Herfindahl–Hirschman Index. I also found and described four states of diversification in the single-industry town economy.
Conclusions and Relevance Applying the dynamic approach to evaluating the diversification effectiveness and illustrating the single-industry town of Berezovskii, Kemerovo Oblast, I can state the low efficiency of the town diversification in the current circumstances. The approach will contribute to the methodological principles of the diversification effectiveness evaluation in relation to the single-industry town.

Keywords: diversification, effectiveness, single-industry town, dynamic approach

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