+7 925 966 4690, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»






Regional Economics: Theory and Practice

Factors of economic development of cities in the region

Vol. 13, Iss. 28, JULY 2015

PDF  Article PDF Version

Received: 4 December 2014

Accepted: 15 January 2015

Available online: 26 August 2015


JEL Classification: 

Pages: 54-68

Krinichanskii K.V. South Ural State University (National Research University), Chelyabinsk, Russian Federation

Bezrukov A.V. South Ural State University (National Research University), Chelyabinsk, Russian Federation

Lavrent'ev A.S. South Ural State University (National Research University), Chelyabinsk, Russian Federation

Importance The article presents the results of the analysis of conditions and factors of urban development of the region.
The goal of the study is to score the dependence of gross municipal product of cities on variables such as the municipal budget cost on education and health, the number of persons engaged in small business, investment in fixed assets. As well, the paper provides interpretation of grades and recommendations on policy.
     Methods For research, we used statistical and econometric methods. The database is generated from a sample of the cities of the Chelyabinsk region. To select an adequate model of analysis, we applied specific tests of the structural characteristics of the models.
     Results We identified a significant positive relationship between per capita gross municipal product and variables of budget expenditures on education and health care and investments in fixed assets, as well as differences in the values of coefficients for the variables to most major cities in comparison to other cities.
     Conclusions and Relevance We draw a conclusion that the cities of the region not included in the group of the largest ones, are strongly influenced by the perspective of social spending. We proved that for the long-term growth, a strategy of transition to a different growth model, in which the major role is played by investment, predominantly private, is absolutely necessary. In addition, we prove that small business plays an insufficiently expressed role in the economic development of the region, and the actual employment in it is poorly considered.

Keywords: measurement, sub-regional, economic growth, urban analysis, models, panel data, econometric models


  1. Abryutina M.S. Dobavlennaya stoimost' i pribyl' v sisteme mikro- i makroanaliza finansovo-ekonomicheskoi deyatel'nosti [Value added and profit in the system of micro-and macro-analysis of financial and economic activities]. Finansovyi menedzhment = Financial Management, 2002, no. 1, pp. 13–27.
  2. Glinskii V.V., Serga L.K., Pulyaevskaya V.L. Statisticheskii instrumentarii v reshenii zadach upravleniya razvitiem territorii [Statistical tools in solving the problems of managing the development of the territories]. Voprosy Statistiki, 2014, no. 10, pp. 14–20.
  3. Ivanov Yu.N., Masakova I.D. Sistema natsional'nykh schetov v rossiiskoi statistike. Osnovnye itogi vnedreniya SNS-93 v rossiiskuyu statistiku [National Accounts System in the Russian Statistics]. Voprosy Economiki, 2000, no. 2, pp. 121–134.
  4. Kolechkov D.V., Gadzhiev Yu.A. Valovoi munitsipal'nyi produkt v otsenke ekonomicheskogo razvitiya regiona [Gross municipal product for the estimation of economic development level of the region]. Voprosy Statistiki, 2007, no. 3, pp. 23–26.
  5. Kolechkov D.V., Gadzhiev Yu.A., Timashev S.A., Makarova M.N. Valovoi munitsipal'nyi produkt: metody rascheta i primenenie [Gross municipal product: a design procedure and application]. Ekonomika regiona = The Region’s Economy, 2012, no. 4, pp. 49–59.
  6. Tatarinov A. Subnatsional'nye scheta: problemy razrabotki i ispol'zovanie v regional'nom analize [Sub-national accounts: problems of development and the use in regional analysis]. Moscow, Gaidar Institute for Economic Policy Publ., 2005, 163 p.
  7. Cameron A.C., Trivedi P.K. Microeconometrics: Methods and Applications. New York, Cambridge University Press, 2005, 1035 p.
  8. Tukey J.W. Analiz rezul'tatov nablyudenii. Razvedochnyi analiz [Exploratory Data Analysis]. Moscow, Mir Publ., 1981, 693 p.
  9. Zellner A. An efficient method of estimating seemingly unrelated regression equations and tests for aggregation bias. Journal of the American Statistical Association, 1962, vol. 57, iss. 298, pp. 348–368. doi: 1080/01621459.1962.10480664
  10. Draper N.R., Smith H. Prikladnoi regressionnyi analiz [Applied Regression Analysis]. Мoscow, Finansy i statistika Publ., 1986, 392 p.
  11. Parks R.W. Efficient Estimation of a System of Regression Equations When Disturbances Are Both Serially and Contemporaneously Correlated. Journal of the American Statistical Association, 1967, vol. 62, no. 38, pp. 500–509.
  12. Baltagi B.H. Econometric Analysis of Panel Data. Chichester, John Wiley & Sons, 2005, 302 p.
  13. Diggle P.J., Heagerty P., Liang K.-Y., Zeger S.L. Analysis of Longitudinal Data. New York, Oxford University Press, 2013, 379 p.
  14. Frees E. Longitudinal and Panel Data: Analysis and Applications in the Social Sciences. New York, Cambridge University Press, 2004, 484 p.
  15. Hsiao C. Analysis of Panel Data (Econometric Society Monographs). New York, Cambridge University Press, 2003, 353 p.
  16. Chamberlain G. Analysis of Covariance with Qualitative Data. Review of Economic Studies, 1980, vol. 47, pp. 225–223.
  17. Ratnikova T.A. Vvedenie v ekonomicheskii analiz panel'nykh dannykh [An Introduction to Econometric Analysis of Panel Data]. Ekonomicheskii zhurnal VShE = HSE Economic Journal, 2006, vol. 10, no. 2, pp. 267–316.
  18. Frish R., Waugh F.V. Partial Time Regressions as Compared with Individual Trends. The Econometric Society, 1933, vol. 1, no. 4, pp. 387–401.
  19. Breusch T., Pagan A. A Simple Test of Heteroscedasticity and Random Coefficient Variations. The Econometric Society, 1979, vol. 47, no. 5, pp. 1287–1294.
  20. Weida F.M. Statistical Decision Functions by Abraham Wald. Mathematics Magazine, 1951, vol. 24, no. 5, pp. 283–285.

View all articles of issue


ISSN 2311-8733 (Online)
ISSN 2073-1477 (Print)

Journal current issue

Vol. 22, Iss. 2
February 2024