Function of region attractiveness for economy and business as a goal of development regional economic system

  • Нина Борисовна Баева Voronezh State University
  • Евгений Владимирович Куркин Voronezh State University
Keywords: regional economic system, production lacuna, attraction function of region, attraction modeling

Abstract

Purpose: in article the economic system of the region from a position of appeal of its separate elements (types of economic activity) to a production lacuna is considered. Discussion: production lacuna refers to the subjects of the economic system of the region, which carry out their activities in it, but are not organically subordinate to the management center. For such entities, gross output and payment of taxes are recorded in the region of the parent organization. This creates heterogeneities in the structure of the system and imbalances in its development, which requires special approaches in modeling the development of the region's economy. Results: сompared to earlier work on the subject of production lacuna, the feature of this article is the use of the attractiveness function of the region as a function of the goal in the development model of the region. This approach makes it possible to direct funds towards the development of the region so as to achieve maximum attractiveness for those economic activities where the involvement of third parties is required and minimal in those where protectionism is necessary. The work also indicates ways to improve the attractiveness function, for the type of economic activity agriculture restored the type of attractiveness function of the region. The restoration of the function was carried out on the basis of a number of data from the statistical compendium and data from the tax service.

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Published
2020-11-20
How to Cite
Баева, Н. Б., & Куркин, Е. В. (2020). Function of region attractiveness for economy and business as a goal of development regional economic system. Modern Economics: Problems and Solutions, 10, 8-17. https://doi.org/10.17308/meps.2020.10/2444
Section
Mathematical Methods in Economics