Subject. Problems of increasing the economic potential of Russia's regions. Objectives. Searching for a theoretical basis for effectively addressing problems related to the differentiation of Russian regions by their level of economic development. Methods. General scientific research methods were applied. Results. The economic situation in Russia is influenced by a number of factors, including the federal budget deficit, a decline in export volumes, worsening demographic trends, and the outflow of resources from peripheral regions. The modernization of the sectoral structure of the economies of Russian regions can be carried out taking into account the provisions of the theory of optimal production location, general theories of economic growth, and the theory of interregional interaction. Conclusions. The research results can be used in the development of economic development programs for Russian regions under conditions of the country's isolation from global markets.
Keywords: regional economy, spatial development, production location, agglomeration, enterprise
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