| In the section | Articles |
| Title of the article | Interregional Integration and Business Cycles Synchronization in the Russian Economic Space |
| Pages | 63-82 |
| Author | Artyom Gennadyevich Isaev Candidate of Sciences (Economics), Director Economic Research Institute FEB RAS 153 Tikhookeanskaya St., Khabarovsk, 680042, Russian Federation This email address is being protected from spambots. You need JavaScript enabled to view it. ORCID: 0000-0001-6569-2982 |
| Abstract | The article examines the relationship between the degree of interregional integration of Russian regions and the corresponding national-regional business cycles synchronization based on quarterly statistics on the unemployment rate for 2010–2020. The unemployment rate is used as an indicator of the business cycle. To identify lags and leads between both types of cycles for each region, the Brechling econometric model of the regional unemployment rate is used. Regional integration indices, which are proxy indicators of the strength of interregional interactions, are assessed based on a method using regional annual consumer price indices for 25 groups of goods and services. It is shown that the distribution of integration indices across Russian regions from maximum to minimum has the shape of a plateau with a slight slope, ending with a rather sharp decline on the tail of this distribution. The distribution shows that the lowest degree of interregional integration is observed for the regions of the North Caucasian and Far Eastern federal districts. These federal districts are dominated by regions in which business cycles are poorly synchronized with national ones (which have lags or leads in relation to the latter), while for the business cycles of other Russian regions the absence of such lags and leads is more typical. It is also found that the sensitivity of regional unemployment levels to changes in unemployment at the national level is significantly lower for low-integrated regions compared to relatively highly integrated regions |
| Code | 330+332+338 |
| JEL | E31, E32, R23 |
| DOI | https://dx.doi.org/10.14530/se.2023.3.063-082 |
| Keywords | interregional integration, unemployment rate, business cycle, regional cycles synchronization, region, Russian Federation |
| Download | SE.2023.3.063-082.Isaev.pdf |
| For citation | Isaev A.G. Interregional Integration and Business Cycles Synchronization in the Russian Economic Space. Prostranstvennaya Ekonomika = Spatial Economics, 2023, vol. 19, no. 3, pp. 63–82. https://dx.doi.org/10.14530/se.2023.3.063-082 (In Russian) |
| References | 1. Almeida A., Galiano A., Golpe A., Martin J. Regional Unemployment and Cyclical Sensitivity in Spain. Letters in Spatial and Resource Sciences, 2020, vol. 13, issue 2, pp. 187–199. 2. Barrios S., Lucio J.-J. Economic Integration and Regional Business Cycles: Evidence from the Iberian Regions. Oxford Bulletin of Economics and Statistics, 2003, vol. 65, issue 4, pp. 497–515. 3. Brechling F. Trends and Cycles in British Regional Unemployment. Oxford Economic Papers, 1967, vol. 19, issue 1, pp. 1–21. 4. Gallegati M., Gallegati M., Polacek W. Business Cycle Fluctuations in Mediterranean Countries (1960–2000). Emerging Markets Finance and Trade, 2004, vol. 40, issue 6, pp. 28–47. 5. Graham D., Spence N. Manufacturing Employment Change, Output Demand, and Labor Productivity in the Regions of Britain. International Regional Science Review, 2000, vol. 23, issue 2, pp. 172–200. 6. Hodrick R., Prescott E. Postwar U.S. Business Cycles: An Empirical Investigations. Journal of Money, Credit and Banking, 1997, vol. 29, no. 1, pp. 1–16. 7. Hong T., Yu N., Storm S., Gao B. How Much Does Regional Integration Contribute to Growth? An Analysis of the Impact of Domestic Market Integration on Regional Economic Performance in China (1997–2011). Economic Research – Ekonomska Istrazivanja, 2019, vol. 32, issue 1, pp. 3189–3210. 8. Isaev A.G., Kim A.L., Merzlyakov I.O. Quantitative Assessment of Integration Trends in Russian Regions. Regionalistica [Regionalistics], 2022, vol. 9, no. 6, pp. 5–22. http://dx.doi.org/10.14530/reg.2022.6.5 (In Russian). 9. Isard W. Methods of Regional Analysis: An Introduction to Regional Science. Moscow, 1966, 660 p. 10. Lomakina N.V., Fayman A.D. ‘Shift Workers’ in the Resource Industries: Effects for the Economy of the Region. Regionalistica [Regionalistics], 2021, vol. 8, no. 6, pp. 20–37. http://dx.doi.org/10.14530/reg.2021.6.20 (In Russian). 11. Minakir P.A., Isaev A.G., Demyanenko А.N., Prokapalo О.М. Economic Macroregions: An Integration Phenomenon or a Political Geographic Rationale? Far Eastern Russia Case. Prostranstvennaya Ekonomika = Spatial Economics, 2020, vol. 16, no. 1, pp. 66–99. https://dx.doi.org/10.14530/se.2020.1.066-099 (In Russian). 12. Panteladis I., Tsiapa M. Fragmented Integration and Business Cycle Synchronization in the Greek Regions. European Planning Studies, 2014, vol. 22, issue 5, pp. 909–928. http://dx.doi.org/10.1080/09654313.2012.744381 13. Partridge M., Rickman D. Differences in State Unemployment Rates: The Role of Labor and Product Market Structural Shifts. Southern Economic Journal, 1995, vol. 62, no. 1, pp. 89–106. 14. Smirnov S.V., Frenkel A.A., Kondrashov N.V. Indices of Regional Economic Activity. Voprosy Statistiki [Statistical Issues], 2016, no. 12, pp. 29–38. (In Russian). 15. Smirnov S.V., Kondrashov N.V., Petronevich A.V. Dating Turning Points of the Russian Economic Cycle, 1981–2015. Ekonomicheskiy Zhurnal VSHE = HSE Economic Journal, 2015, vol. 19, no. 4, pp. 534–553. (In Russian). 16. Solntsev S.A., Emelina N., Lopatina M.V. Features of Unemployment in the Russian Labor Market: Newsletter. Edited by S.A. Solntsev, S.Yu. Roshchin. Moscow, 2021, 50 p. https://dx.doi.org/10.17323/978-5-7598-2283-7 (In Russian). |
| Financing | |
| Submitted | 25.08.2023 |
| Approved after reviewing | 11.09.2023 |
| Accepted for publication | 14.09.2023 |
| Available online | 02.10.2023 |