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Development issues and priorities of municipalities in the Russian Arctic during the crisis

Vol. 14, Iss. 10, OCTOBER 2018

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Received: 24 May 2018

Received in revised form: 18 June 2018

Accepted: 10 July 2018

Available online: 15 October 2018


JEL Classification: R11, R51, R53, R58

Pages: 1830–1844

Emel'yanova E.E. Luzin Institute for Economic Studies, Kola Science Centre of Russian Academy of Sciences (KSC RAS), Apatity, Murmansk Oblast, Russian Federation

ORCID id: not available

Objectives The research identifies issues of fiscal funding and investment development of municipalities in the Russian Arctic by their production and business specialization during crisis processes. I also determine the promising courses of development.
Methods The research is based on methods of statistical and economic analysis and systems approach to studying socio-economic issues of municipalities in the Arctic.
Results Analyzing the sufficiency of fiscal funds and investment activity of municipalities in the Russian Arctic during the crisis, I determine challenges and prospects of the urban development by their production and economic specialization. Municipalities with the predominance of the oil and gas industry are the most stable due to their competitive advantages. Administrative centers in the constituent entities of the Russian Federation and single-industry localities strongly depend on entities operating there, and crisis management measures governmental and regional authorities undertake. Economically diversified cities experience the highest exposure to crisis phenomena, with their sufficiency of budgetary funds and investment activity depending on the superior budgets of the country.
Conclusions and Relevance The development of the Arctic cities strongly depends on competitive advantages, economic structure and attitude of regional and municipal authorities. The socio-economic development of municipalities in the Russian Arctic imply the effective operation of industrially advanced centers. The findings can be used by governmental and municipal authorities to form development plans and programs.

Keywords: Arctic zone, municipalities, investment climate


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