Content №4 от 2024
Manufacturing Industry in Eastern Russia Amid Economic Shocks
This study aims to examine the peculiarities of the manufacturing industry’s development in the eastern regions of Russia. Can the “eastern vector" of regional development be considered a noteworthy factor in this dynamic? We investigate several aspects of economic processes in the eastern regions during the economic shocks of 2020-2021 and 2022-2023, including the dynamics of production, labor productivity in manufacturing, and tax revenues from manufacturing industries. The calculations are based on the production index.
In terms of production volumes, industrialization in the east of the Russian Federation generally outpaced the national average from 2017 to 2023, with the exception of2022, though results varied significantly by region. Labor productivity in all Far Eastern regions was higher in 2022 than in 2017. However, according to the foreign economic activity (FEA) data for “Manufacturing Industries" in the Russian East, this indicator was below the national average in 2022, and in four regions, it declined compared to 2017. Given the current limited availability of labor resources, this poses risks to the continued growth of the manufacturing sector in the eastern regions.
An analysis of Federal Tax Service data revealed a substantial increase in tax revenues from the manufacturing industry both nationally and in the eastern regions in 2023. While this trend is positive for overall budget revenues, it also suggests a growing tax burden on the industry, which could negatively affect its development and modernization in the medium term.
The findings support expanding the argument for a “pivot to the east." Rather than focusing solely on increasing exports, the priority should be on fostering horizontal economic relationships and cooperation between regions in Russia’s Asian part to improve the efficiency of regional economic systems. That is to say, a “pivot to the east" should first and foremost be a “pivot to the East of Russia".
Glazyrina I. P. [email protected]
