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Regional Economics: Theory and Practice
 

Metropolization as a factor and mechanism of territorial capitalization

Vol. 13, Iss. 10, MARCH 2015

PDF  Article PDF Version

Available online: 11 March 2015

Subject Heading: SUSTAINABLE DEVELOPMENT OF REGIONS

JEL Classification: 

Pages: 27-36

Gontar' N.V. North Caucasian Research Institute of Economic and Social Problems, Southern Federal University, Rostov-on-Don, Russian Federation
passat01@mail.ru

Importance The article deals with the problems of management of competitive positions of territories and search for adequate methodological tools.
     Objectives The purpose of the paper is to supplement the existing approaches to the analysis of territories capitalization with the approaches which take into account the factor of metropolization.
     Methods For research, I analyzed the concepts of capitalization and metropolization, and as well I compared the existing approaches to assessment of capitalization. I justified the role of metropolization in capitalization and differentiation process for different types of territories (mother countries, dependent territories).
     Results The study identified the components of capitalization; analyzed the interpretation according to which the capitalization of the territory is regarded as the cost of its resources, businesses, assets like a machine on the production of profit, as well as systematic efforts to make resources, funds and assets in working capital. The paper proves that there is no comprehensive assessment of cumulative regional capital, but an approximate valuation of individual species is possible by summing the indicators of this capital. I have examined cost approaches to measuring the capitalization, based on the use of the system of national accounts, as well as the evaluation of the Federal State Statistics Service, taking into account only the fixed assets, current assets and material possessions. The paper presents a score of the national wealth of Russia, according to the Institute of Economics of the RAS. It also submits the results of alternative research of the country's cost as the sum of the discounted income of individual sectors, which was approximately 33.6 trillion US dollars on January 01, 2003.
     Conclusions and Relevance The article concludes that when analyzing and evaluating the capitalization, it is necessary to take into account the role of metropolization at all levels of territorial hierarchy and institutions that have a greater long-term effect compared to the administrative regulation. The results of the analysis can be used for a jurisdictional (inter-territorial) analysis, and resource management.

Keywords: territorial capitalization, market, State regulation, metropolization, regional development, institutions

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