National Interests: Priorities and Security

Diversification of the economy in Russia’s regions: Measurement and trends

Vol. 13, Iss. 12, DECEMBER 2017

Received: 12 September 2017

Received in revised form: 8 October 2017

Accepted: 2 November 2017

Available online: 22 December 2017


JEL Classification: E01, O11, O47

Pages: 2236–2255

Zaretskaya V.G. Financial University under Government of Russian Federation, Kursk Branch, Kursk, Russian Federation

Titkova I.K. Financial University under Government of Russian Federation, Kursk Branch, Kursk, Russian Federation

Importance The article explores the diversification of the economy in the Russian regions.
Objectives We demonstrate the way the diversification of the region's economy correlates with its economic development level.
Methods The research involves indices of the development evenness (specialization level), Ryabtsev index, Szalai index, Gatev index, Theil index, entropy index and Herfindahl-Hirschman index. Having analyzed strengths and weaknesses of those measurement methods and diversification, we concluded it would be reasonable to use the Herfindahl-Hirschman index. We conduct an econometric analysis of a correlation between GRP per capita and the diversification level of the region's economy.
Results Higher GRP per capita is registered in regions where one of the sectors dominates the others and diversification is lower, i.e. resource-based regions. I examine those Russian regions without a resource focus and demonstrate that the region’s economic growth depends on the production diversification.
Conclusions and Relevance If the economy of resource-based regions is diversified, it will reduce GRP per capita there. If the economy of regions without a resource focus is diversified, value added per unit of resources grows. As such regions and their economy become more diversified and more types of economic activity appear there, GRP per capita increases as well.

Keywords: diversification, specialization, gross regional product, Herfindahl-Hirschman index, economic growth


  1. Barkalov S.А., Ereshko F.I., Kanaeva N.А. [Analyzing diversification models]. Sistemy upravleniya i informatsionnye tekhnologii = Control Systems and Information Technology, 2014, no. 1-1, pp. 112–117. (In Russ.)
  2. Barkalov S.A., Ereshko F.I., Kanaeva N.A. [Analyzing diversification models for linear models of production processes]. Sistemy upravleniya i informatsionnye tekhnologii = Control Systems and Information Technology, 2014, no. 2-1, pp. 110–114. (In Russ.)
  3. Burkova I.V., Kanaeva N.A. Zadachi optimal'noi diversifikatsii investitsionnykh resursov. V kn.: Trudy XII Vserossiiskoe soveshchanie po problemam upravleniya [Objectives of the optimal diversification of investment processes. In: Proceedings of the 12th Russian Meeting on Governance]. Moscow, Institute of Problems of Management Publ., 2014, pp. 16–19.
  4. Bukhvalov A.V., Kat'kalo V.S. [Contemporary interpretations of diversification strategies]. Rossiiskii zhurnal menedzhmenta = Russian Management Journal, 2008, no. 1, pp. 57–64. (In Russ.)
  5. Yakovenko D.O., Tselishchev M.A. [Diversification and its links with risk measures]. Informatika i ee primeneniya = Informatics and its Applications, 2011, no. 3, pp. 21–26. (In Russ.)
  6. Kandrashina E.A., Chudaeva A.A. [Diversification as a way of innovative development of national economy]. Vestnik Samarskogo gosudarstvennogo ekonomicheskogo universiteta = Vestnik of Samara State University of Economics, 2012, no. 4, pp. 47–51. (In Russ.)
  7. Volchkova N. [New theory of international trade and new economic geography (Nobel Prize in Economics 2008)]. Voprosy Ekonomiki, 2009, no. 1, pp. 68–83. (In Russ.)
  8. Potekhin N.A., Rusakov M.Yu. [Thermodynamical approach to regions' manufacture integration and diversification investigation]. Ekonomika regiona = Economy of Region, 2007, no. 1, pp. 123–128. (In Russ.)
  9. Parakhina V.N., Vorontsova G.V., Momotova O.N. [Methodical toolkit of the estimation of the regional diversification level and its realization]. Ekonomika: vchera, segodnya, zavtra = Economics: Yesterday, Today, Tomorrow, 2012, no. 1-2, pp. 36–50. (In Russ.)
  10. Kleiner G. [What kind of economy does Russia need and for what purpose?]. Voprosy Ekonomiki, 2013, no. 10, pp. 4–27. (In Russ.)
  11. Glaz'ev S.Yu. [On the external and internal threats to the economic security of Russia in the context of American aggression]. Menedzhment i biznes-administrirovanie = Management and Business Administration, 2015, no. 1, pp. 4–20. (In Russ.)
  12. Grinberg R.S. [Concerning new 'extensive privatization' and other 'unpopular reforms']. Rossiiskii ekonomicheskii zhurnal = Russian Economic Journal, 2012, no. 3, pp. 26–32. (In Russ.)
  13. Polterovich V.M. [Where to go: Twenty four theses]. Ekonomicheskaya nauka sovremennoi Rossii = Economics of Contemporary Russia, 2014, no. 3, pp. 7–17. (In Russ.)
  14. Larionov A.O., Barabanov A.S. [Regional industry diversification: the methodological aspect]. Ekonomika i predprinimatel'stvo = Journal of Economy and Entrepreneurship, 2013, no. 8, pp. 136–139. (In Russ.)
  15. Polikarpova M.G. [Statistical analysis of the diversification of the integration activity in the Russian economy]. Molodoi uchenyi = Young Scientist, 2013, no. 10, pp. 377–379. (In Russ.)
  16. Kolomak E.A. [Interregional disparities in Russia: Economic and social aspects]. Prostranstvennaya ekonomika = Spatial Economics, 2010, no. 1, pp. 132–150. (In Russ.)
  17. Ankudinov A.B., Belyaeva M.N., Lebedev O.V. [Influence of diversification on efficiency of regional economy]. Regional'naya ekonomika: teoriya i praktika = Regional Economics: Theory and Practice, 2012, no. 31, pp. 8–20. URL: (In Russ.)
  18. Mkhitaryan V.S., Polikarpova M.G. [Statistical analysis of Russian market of mergers and acquisitions in 2008–2012]. Voprosy statistiki = Bulletin of Statistics, 2014, no. 3, pp. 23–29. (In Russ.)
  19. Smith S.M., Gibson C.M. Industrial Diversification in Nonmetropolitan Counties and its Effect on Economic Stability. Western Journal of Agricultural Economics, 1988, no. 2, pp. 193–201.

View all articles of issue


ISSN 2311-875X (Online)
ISSN 2073-2872 (Print)

Journal current issue

Vol. 13, Iss. 12
December 2017