Regional Economics: Theory and Practice

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The role of monopolies in the formation of regional inequality

Vol. 17, Iss. 2, FEBRUARY 2019

Received: 28 September 2018

Received in revised form: 24 October 2018

Accepted: 14 November 2018

Available online: 15 February 2019


JEL Classification: P16, R11, R58

Pages: 220–233

Liferenko Yu.V. Tver State University (TSU), Tver, Russian Federation

ORCID id: not available

Subject This article deals with the issues related to socio-economic inequality of different regions of Russia.
Objectives The article aims to show that regional inequality does not exist a priori, but it is provoked under certain circumstances, and it not much depends on economic policy.
Methods For the study, I used the methods and techniques of scientific abstraction, analysis and synthesis, and comparison. As well, I considered the best practices of foreign countries.
Results The article considers the dominance of monopolies in the country's economy, resulting in a scarcity of funds and increasing poverty on the periphery, the main cause of inequality. The article also examines a number of regional policy options to alleviate inequality, and proposes to explore and use the Chinese practice option, that is a method of duplicative investments across the country.
Conclusions The article concludes that the peculiarities of the socio-economic system are the main cause of inequality. Multiple constraints or elimination of monopoly rule would help restore the work of market mechanisms of income distribution, saturating the periphery with capital.

Keywords: surplus capital, exploitation, core and periphery, monopoly and outsider


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