Regional Economics: Theory and Practice
 

Behavior of the local economic system: An analysis methodology and classification of sustainability conditions

Vol. 15, Iss. 11, NOVEMBER 2017

Received: 7 September 2015

Received in revised form: 24 September 2015

Accepted: 7 October 2015

Available online: 15 November 2017

Subject Heading: THEORY OF REGIONAL ECONOMY

JEL Classification: E32, P51, R11

Pages: 1992–2014

https://doi.org/10.24891/re.15.11.1992

Gurban I.A. Institute of Economics, Ural Branch of Russian Academy of Sciences, Yekaterinburg, Russian Federation inessagurban@gmail.com

Pecherkina M.S. Institute of Economics, Ural Branch of Russian Academy of Sciences, Yekaterinburg, Russian Federation maria09.06@mail.ru

Importance The research develops an algorithm for analyzing the economic system behavior in a certain region, considering changes in the national economy.
Objectives The research determines the economic system behavior of the Ural Federal District in relation to the Russian economy, and economic system of the Sverdlovsk oblast in relation to the economy of the Ural Federal District.
Methods Using the dynamics time series analysis, we assessed the sustainability of a subordinate system against a superior one and proposed the classifier describing how the subordinate system responded to changes in the main system.
Results The article shows growth trends in the industrial production index of Russia, Ural Federal District and the Sverdlovsk oblast, provides the assessment of the industry within the 1997–2015 period, focusing on the years of crisis.
Conclusions and Relevance The economic system of the Ural Federal District has been proved to be vulnerable against the national economy. In 2014, the economy of the Ural Federal District was less susceptible to the national crisis. In 1998 and 2009, the economy of the Sverdlovsk oblast was less stable against the economy of the Ural Federal District. In 2014, the economy of the Sverdlovsk oblast responded in a different way, being sustainable and growing.

Keywords: region, sustainable development, economic crises, growth rates, industrial production index

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