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Assessing the prospects for cluster development in regions: Methods and empirical study results: Evidence from the Republic of Belarus

Volkova Yu.A. Sukhoi State Technical University of Gomel, Gomel, Republic of Belarus ( )

Journal: Economic Analysis: Theory and Practice, #1, 2018

Subject The article addresses methodological aspects of cluster creation.
Objectives The study's purpose is to develop and test methodological tools to assess preconditions, perspectives and selection of priority areas for cluster development in regions.
Methods The study draws on economic and statistical methods. I present my own methodology to assess prospects for cluster development in regions. It consists of six stages and considers key factors of cluster structures identification in the economy.
Results Based on the testing of the said methodological tools, I rank possible areas of cluster development in regions of the Republic of Belarus by four groups, starting from those having the most favorable prospects to those having none.
Conclusions The developed tools help perform a quantitative comparative analysis of integral indicators of prospects for cluster development of economic activities in different regions, identify the most promising areas and the best geographical location. The analysis can be used to provide a rationale for inter-regional cluster creation. The obtained empirical results may serve as practical recommendations for public authorities in making decision about clustering and priorities for State support to cluster development in regions.

The efficiency of integration of entities into holding companies: Evidence from the Republic of Belarus

Volkova Yu.A. Sukhoi Gomel State Technical University, Gomel, Republic of Belarus ( )

Dragun N.P. Sukhoi Gomel State Technical University, Gomel, Republic of Belarus ( )

Journal: National Interests: Priorities and Security, #6, 2017

Importance The integration of business entities is one of the tools to improve their performance. Whereas there are various integration types and forms, it is reasonable to determine which one would be effective in certain economic conditions.
Objectives The research evaluates the efficiency of the rigid hierarchical integration in line with the holding pattern and analyzes its reasonableness, illustrating various business entities in the Republic of Belarus.
Methods We construct pair regression models with a dummy variable using the least square method and logit-models using the maximum likelihood method.
Results We detected statistically significant differences among certain efficiency indicators of integrated and non-integrated entities. The results do not provide certainty in evaluating the comparative efficiency of entities.
Conclusions and Relevance In the current economic conditions of the Republic of Belarus, the rigid hierarchical integration and subsequent establishment of holding structures should not be considered as an exceptional method to increase cost effectiveness of integrated entities and improve their financial position. Holding structures may be effective in case of the vertical integration of entities driven by their technological ties, and in addressing the X-inefficiency matter. In each particular case, the integration form and type should be chosen in line with the specifics of distribution markets, geographical location of entities, economic conditions of their operations, goals and reasons for the integration.

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