Scientific Journal SPATIAL ECONOMICS - Asian Russia – Conditions for and Obstacles to Progressive Diversification of Macroregional Economy

In the section	Articles
Title of the article	Asian Russia – Conditions for and Obstacles to Progressive Diversification of Macroregional Economy
Pages	34-72
Author 1	Valeriy Anatolievich Kryukov Academician RAS, Doctor of Economics, Professor, Director Institute of Economics and Industrial Engineering SB RAS 17 Academika Lavrentieva Av., Novosibirsk, 630090, Russian Federation This email address is being protected from spambots. You need JavaScript enabled to view it. ORCID: 0000-0002-7315-6044
Author 2	Vladimir Vitalievich Shmat Candidate of Sciences (Economics), Leading Researcher Institute of Economics and Industrial Engineering SB RAS 17 Academika Lavrentieva Av., Novosibirsk, 630090, Russian Federation This email address is being protected from spambots. You need JavaScript enabled to view it. ORCID: 0000-0002-7434-7408
Abstract	The paper considers the peculiarities and directions of economy diversification processes in the eastern part of Russia – the territory that stretches from the Urals to the Pacific Ocean. The processes of diversification are reviewed through the prism of not only the views and approaches developed within the framework of modern evolutionary economic geography but also institutional economics. It is shown that the state and dynamics of diversification processes in the Asian Russia are determined by the peculiarities of the transformation of the country’s economy as a whole during the transition from the system of centralized planning and management to a system based on market principles of interaction between economic agents. The role and importance of previously formed assets and implemented solutions – especially in the infrastructure sphere and previously created production structures – are extremely high. Without taking into account the peculiarities of space – the significant distances between different productions that are links in the value chain – the transformation of the economy leads to a narrowing of the spheres of economic activity and subsequent de-industrialization. According to the authors, the transition to the evolutionary process of economic diversification of the vast macroregion is impossible without a balanced public industrial policy and policy in the field of nature and subsoil use. The analysis of the processes of diversification / de-industrialization is supplemented and expanded within the framework of the cognitive analysis of possible directions and conditions affecting them. The authors offer a set of fundamental measures and steps, that allow, in their opinion, moving from ‘extra-regional’ causes of diversification to augmenting the role and importance of local and internal factors and conditions
Code	332+338
JEL	O10, R12, R58
DOI	https://dx.doi.org/10.14530/se.2022.1.034-072
Keywords	diversification ♦ evolutionary economic geography ♦ institutional economics ♦ state participation ♦ space ♦ industrial policy ♦ natural resource management ♦ Asian Russia
Download	SE.2022.1.034-072.Kryukov.pdf
For citation	Kryukov V.A., Shmat V.V. Asian Russia – Conditions for and Obstacles to Progressive Diversification of Macroregional Economy. Prostranstvennaya Ekonomika = Spatial Economics, 2022, vol. 18, no. 1, pp. 34–72. https://dx.doi.org/10.14530/se.2022.1.034-072 (In Russian)
References	1. Acemoglu D., Zilibotti F. Was Prometheus Unbound by Chance? Risk, Diversification, and Growth. Journal of Political Economy, 1997, vol. 105, no. 4, pp. 709–751. https://doi.org/10.1086/262091 2. Al-Kasim F. Managing Petroleum Resources: The ‘Norwegian Model’ in a Broad Perspective. Oxford: Oxford Institute for Energy Studies, 2006, 264 p. 3. Alonso-Borrego C., Forcadell F.J. Related Diversification and R&D Intensity Dynamics. Research Policy, 2010, vol. 39, issue 4, pp. 537–548. https://doi.org/10.1016/j.respol.2010.02.015 4. Attaran M., Zwick M. Entropy and other Measures of Industrial Diversification. Quarterly Journal of Business and Economics, 1987, vol. 26, no. 4, pp. 17–34. 5. Berriel T., Bonomo M., Carvalho C. Deindustrialization and Economic Diversification. SSRN Electronic Journal, 2014. http://dx.doi.org/10.2139/ssrn.2385735 6. Boschma R. The Geographical Dimension of Structural Change. New Perspectives on Structural Change: Causes and Consequences of Structural Change in the Glo-bal Economy. Edited by L. Alcorta, N. Foster-McGregor, B. Verspagen, A. Szirmai. Oxford: Oxford University Press, 2021, pp. 172–187. https://doi.org/10.1093/oso/9780198850113.003.0009 7. Carvalho J.P., Tome Jose A.B. Rule Based Fuzzy Cognitive Maps in Socio-Economic Systems. Proceedings of the 2009 International Fuzzy Systems Association World Congress and 2009 European Society for Fuzzy Logic and Technology Conference (July 20–24, 2009, Lisbon). Lisbon: IFSA-EUSFLAT, 2009, pp. 1821–1826. 8. Coase R., Wang N. How China Became Capitalist. Basingstoke and New York: Palgrave Macmillan, 2012, 272 p. https://doi.org/10.1057/9781137019370 9. Dickerson J.A., Kosko B. Virtual Worlds as Fuzzy Cognitive Maps. Presence, 1994, vol. 3, issue 2, pp. 173–189. https://doi.org/10.1162/pres.1994.3.2.173 10. Engen O.A. The Development of the Norwegian Petroleum Innovation System: A Historical Overview. TIK Working Paper on Innovation Studies No. 20070605, 2007, 45 p. Available at: https://www.sv.uio.no/tik/InnoWP/EngenTIKpaper%20WPready.pdf (accessed October 2021). 11. Grillitsch M., Asheim B. Place-Based Innovation Policy for Industrial Diversification in Regions. European Planning Studies, 2018, vol. 26, issue 8, pp. 1638–1662. https://doi.org/10.1080/09654313.2018.1484892 12. Isard W., Schooler E.W., Vietorisz T. Industrial Complex Analysis and Regional Development: A Case Study of Refinery-Petrochemical-Synthetic-Fiber Complexes and Puerto Rico. New York: John Wiley & Sons, Inc., 1959, 294 p. 13. Juhasz S., Вroekel T., Boschma R. Explaining the Dynamics of Relatedness: The Role of Co-Location and Complexity. Papers in Regional Science, 2020, vol. 100, issue 1, pp. 3–21. https://doi.org/10.1111/pirs.12567 14. Kokkinos K., Lakioti E., Papageorgiou E., Moustakas K., Karayannis V. Fuzzy Cognitive Map-Based Modeling of Social Acceptance to Overcome Uncertainties in Establishing Waste Biorefinery Facilities. Frontiers in Energy Research, 2018, vol. 6, pp. 1–17. https://doi.org/10.3389/fenrg.2018.00112 15. Kolosovskiy N.N. Fundamentals of Economic Zoning. Moscow, 1958, 200 p. (In Russian). 16. Kosko B. Fuzzy Cognitive Maps. International Journal of Man-Machine Studies, 1986, vol. 24, issue 1, pp. 65–75. https://doi.org/10.1016/S0020-7373(86)80040-2 17. Kryukov V.A., Tokarev A.N., Shmat V.V., Sevastyanova A.Ye., Kryukov Ya.V., Morozova M.Ye. Study of Social and Economic Systems Using the Cognitive Swot Analysis: The Case of Yakutia Economic Zones. Vestnik Severo-Vostochnogo Federalnogo Universiteta im. M.K. Ammosova. Seriya Ekonomika. Sotsiologiya. Kulturollogiya [Bulletin of M.K. Ammosov Northeast Federal University. Series: Economics. Sociology. Cultural studies], 2018, vol. 9, no. 1, pp. 6–13. (In Russian). 18. Kryukov V.A., Moe A. Does Russian Unconventional Oil Have a Future? Energy Policy, 2018, vol. 119, pp. 41–50. https://doi.org/10.1016/j.enpol.2018.04.021 19. Kryukov V.A., Moe A. Joint Management of Oil and Gas Resources in Russia. Post-Soviet Geography and Economics, 1998, vol. 39, issue 10, pp. 588–605. https://doi.org/10.1080/10889388.1998.10641095 20. Lebedeva М.Е. Fuzzy Logic in Economics – The Formation of a New Direction. Idei i Idealy = Ideas and Ideals, 2019, vol. 11, no. 1-1, pp. 197–212. https://doi.org/10.17212/2075-0862-2019-11.1.1-197-212 (In Russian). 21. Lefeber L. Allocation in Space: Production, Transport, and Industrial Location. Amsterdam: North-Holland Pub. Co., 1958, 151 p. 22. Morozova M.E., Shmat V.V. How to Cognize the Mechanisms of Resource Dependence? Application of Cognitive Modeling in the Study of Resource-Dependent Economy. EKO = ECO Journal, 2015, no. 6, pp. 146–159. (In Russian). 23. Morozova M., Shmat V. Medium-Term Forecasting of Russian Economy Using Cognitive Model. Studies on Russian Economic Development, 2017, vol. 28, pp. 253–258. https://doi.org/10.1134/S1075700717030091 24. Muhamad G.M, Heshmati A., Khayyat, N.T. How to Reduce the Degree of Dependency on Natural Resources? Resources Policy, 2021, vol. 72. 102047. https://doi.org/10.1016/j.resourpol.2021.102047 25. Neffke F., Hartog M., Boschma R. Henning M. Agents of Structural Change: The Role of Firms and Entrepreneurs in Regional Diversification. Economic Geography, 2018, vol. 94, issue 1, pp. 23–48. https://doi.org/10.1080/00130095.2017.1391691 26. NTNU. Strategy for Oil and Gas. Norwegian University of Science and Technology, Trondheim, 2017, 75 p. Available at: https://www.ntnu.edu/documents/1281387914/1281513667/BRU21+2017+NTNU +%28Print%29.pdf/4fc78ce5-2987-4f17-8695-67aec203f266 (accessed October 2021). 27. Papageorgiou K., Singh P.K., Papageorgiou E., Chudasama H., Bochtis D., Stamoulis G. Fuzzy Cognitive Map-Based Sustainable Socio-Economic Development Planning for Rural Communities. Sustainability, 2020, vol. 12. 305. https://doi.org/10.3390/su12010305 28. Polterovich V.М. Elements of the Theory of Reform. Moscow, 2007, 447 p. (In Russian). 29. Pryor F.L. Economic Evolution and Structure: The Impact of Complexity on the U.S. Economic System. Cambridge: Cambridge University Press, 1995, 399 p. https://doi.org/10.1017/CBO9781139174602 30. Resilient, Stable, Sustainable: The Benefits of Economic Diversification. 2021, 18 p. Available at: https://www.strategyand.pwc.com/m1/en/reports/strategyand- resilient-stable-sustainable-benefits-economic-diversification.pdf (accessed October 2021). 31. Rodriguez-Duarte A., Sandulli F.D., Minguela-Rata B., Lopez-Sanchez J.I. The Endogenous Relationship between Innovation and Diversification, and the Impact of Technological Resources on the Form of Diversification. Research Policy, 2007, vol. 36, issue 5, pp. 652–664. https://doi.org/10.1016/j.respol.2007.01.004 32. Sapir J. Le Krach Russe. Paris: Editions la Decouverte, 1998, 139 p. (In French). 33. Solheim M.C.W., Tveteras R. Benefitting from Co-Location? Evidence from the Upstream Oil and Gas Industry. The Extractive Industries and Society, 2017, vol. 4, issue 4, pp. 904–914. https://doi.org/10.1016/j.exis.2017.09.001 34. The Concept of Economic Diversification in the Context of Response Measures. UNFCCC, 2016, 54 p. Available at: https://unfccc.int/files/cooperation_support/response_measures/ application/pdf/technical_paper_economic_diversification.pdf (accessed October 2021). 35. Wang Y., Ning L., Prevezer M. Technological Diversification in China from 1986 to 2011: Evidence from Patent Data. Technological Forecasting & Social Change, 2015, vol. 99, pp. 54–66. https://doi.org/10.1016/j.techfore.2015.06.019 36. Williamson O.E. The Economic Institution of Capitalism: Firms, Markets, Relational Contracting. New York: The Free Press, 1985,. 450 p. 37. Yeung H.W.-C. Drivers of Globalization: An Evolutionary Perspective on Firm-State Relations in the Asian Newly Industrialized Economies. Papers in Evolutionary Economic Geography 0920, 2009, 28 p. Available at: http://econ.geo.uu.nl/peeg/peeg0920.pdf (accessed October 2021). 38. Yeung H.W.-C., 2021. Regional Worlds: From Related Variety in Regional Diversification to Strategic Coupling in Global Production Networks. Regional Studies, 2021, vol. 55, issue 6, pp. 989–1010. https://doi.org/10.1080/00343404.2020.1857719 39. Young O.R. Resource Regimes: Natural Resources and Social Institutions. Berkley: University of California Press, 1982, 276 p. 40. Zhou X., Pan Z., Shahbaz M., Song, M. Directed Technological Progress Driven by Diversified Industrial Structural Change. Structural Change and Economic Dynamics, 2020, vol. 54, pp. 112–129. https://doi.org/10.1016/j.strueco.2020.04.013
Financing	This paper was prepared based on the results of the research conducted with the financial support of the Ministry of Science and Higher Education of Russia as part of a major research project ‘Socio-economic development of Asian Russia based on the synergy of transport accessibility, system knowledge of natural resource potential, expanding space of interregional interactions’, Agreement № 075-15-2020-804 of 02.10.2020 (grant No. 13.1902.21.0016)
Submitted	03.12.2021
Approved after reviewing	17.01.2022
Accepted for publication	22.02.2022
Available online	30.03.2022