Abstract: This article is dedicated to the questions of innovative modernization of the Russian regional economy. Emphasis is made on the factors constraining the innovative development: low level of capital accumulation; inadequate to the economic needs development of the financial service market; spatial accessibility of credit organizations. The article also highlights the key issues, which solution is an inseparable part of innovative strategies of the Russian regions. High rate of depletion of the capital assets of Russian enterprises in the traditional economic sectors is determined as the key problem. The majority of studies of the problems of innovative development is dedicated to strengthening of the efficiency of Russian economy due to implementation of innovations without account of the possibility of their assimilation by the industry. The scientific novelty consists in the fact that the author refer to the analysis of the problems of industrial applicability of innovations in the conditions of high rate of wear of production systems. Leaning on the analysis of the current state of industrial capacity, the authors come to the conclusion that innovative modernization requires substantial investment resources, formed by enterprises themselves, as well as by financial market.

Abstract: The subject of this research is dynamic processes in economy of regions of the Northwest federal district and the structure of employment on education level. Economic dynamics affect social dynamics, promoting increase of mobility of factors of production. Researches of mobility of factors of production gain relevance due to high variability of external environment and the need to adapt the subjects of the market. Special attention is given to questions of formation of the educational potential in the conditions of modernization of the economy. The innovative orientation of the economy determines improvement of quality of labor, when not only health of the population, but also and education level becomes the basis of formation of the human capital. The novelty of this research consists in discovery of the change in the trend within the structure of the employed population, which manifested in rapid reduction of the portion of workers with high school education during the period of 2005-2007. It is the period of high investment activity, which caused progressive structural shifts and labor mobility. The personnel with secondary professional education at the growing share with the higher education remain the dominating group in structure of the employed population. Streams of labor migration, especially people with higher education, are focused on the cities with high innovative investment potential.

Abstract: The research subject is the process of formation and liquidation of the agricultural credit cooperation institution in the northern region near the state border. The topicality of this problem is determined by the difference between goal-setting and the goal achievement function in the formation of the institutional environment for effective functioning of cooperative crediting system in rural settlements of the distant northern region. The author considers the problems of development of agricultural credit cooperation, analyzes the mechanisms of government regulation and the reasons of institutional failures. Special attention is given to the issues of cooperatives’ relations with public structures coordinating their activities. The research methodology is based on the dialectical and materialistic approach, which explains the dialectical transformation of the process under study in its real development and improvement in time, and termination under the negative impact of the elements of the close environment of the institution of self-organization. The author explains the necessity to develop agricultural credit consumer cooperation as an institution, meeting the real socio-economic, territorial and geographical, and demographical conditions of the region, and the national interests. The author formulates the proposals about the transformation of the institutional environment for the development of rural cooperatives on the legislative level. 

Abstract: The subject of research is the process of microfinance services market development and methods of its control. The relevance of the chosen subject is due to the divergence of goal-setting and tseledostizhencheskoy function in the formation of the legal framework for the effective functioning of the financial services market in the region. Featuring in the last decade an exponential upward trend, however, the market mikrofinsovyh services in its development has generated a lot of problems in lending to the insolvent population. Avalanche-like growth of arrears contributed to the emergence of informal collectors of services beyond the civilized ways of forced debt collection. The reaction of the individual regions on the increase in social conflicts in this regard was to ban the activities of collectors that the media was seen as a manifestation of separatism. At the same time the root cause of conflicts that arise to return the debt many consider unreasonably high interest rates, which make loans to microfinance institutions, offering first streamline their activities. The article focuses on the positive scenario of the development of services in the field of microfinance, taking into account the historical Russian and foreign experience.The methodology is based on the use of the subjective approach based on the analysis of economic phenomena, where the economic entity acting on the world, serves as the starting point, and an object of economic analysis is the behavior of the subject of the economy, in particular the microfinance market institutions. At the same time the need and usefulness of the services provided by the subject is seen as a major category. Also applies a positive and normative analysis, which represented the basis of the first vision of economic processes and phenomena as they are, and at the base of a second - what should be. Because the processes and phenomena develop and improve or go away from the life that is in constant dialectical movement, the inner connection of phenomena that exist in reality and in their development, are studied with the use of the dialectical-materialist approach.According to the study, we can conclude that we should proceed from the interests of the regions, and at the heart of regulatory mechanisms should be territorial and functional differentiation of the activities of various financial market institutions, contributes to a more effective control in regulating the microfinance services market. Only strict restrictive norms will contribute to the effective development of the microfinance services market and curb opportunism of economic entities of the microfinance market, when the alleged statutory objectives are untrue and at odds with the social objectives of welfare improvement. The element of novelty of this study is the change in the methodological approach to defining the field of activity of institutions of microfinance market.

Abstract: In the current conditions of economic sanctions, it is important to search for the opportunities of the national economy growth, which would promote import substitution, and of progressive structural changes stimulation. The authors emphasize the importance of development of economic sectors, which can become the propulsive force of the economic growth, rather than those providing the domestic demand. The authors attempt an identification of the most significant economic sectors, using the comparison of the outlined types of sectors, classified according to the features, defining the character of the dynamics of their development. The authors apply the methods of time series, grouping, comparative analysis, and graphical analysis. The authors classify economic sectors with different growth trends, from the decelerating development dynamics to the rapidly growing one. The study specifies the term “propulsive industrial sectors”. On the base of the research, the authors conclude that it is necessary to change the industrial policy, which should be oriented at the stimulation of propulsive sectors development, which have a significant importance for the technological breakthrough, and at giving impetus to the development of industrial sectors, ensuring not only import substitution, but also the national security. 

Abstract: International cooperation and foreign-economic activity are essential parts of countries’ economic policy. The article considers the interrelation between investment activity and the frontier location of Russian regions. This process is diverse for different frontier zones characterized by a stronger or weaker investment attractiveness and activity. The object of the research includes the regions sorted out by the authors according to their typological characteristics and grouped in particular frontier zones. The subject of the research is the investment activity of the regions from different zones. The urgency of the research is conditioned by the complexity of socio-economic development in many frontier regions, particularly belonging to Kazakhstan and Caucasian frontier areas, and by the necessity to stir up investment activity in backward regions. The authors use the methods of grouping and comparative analysis. According to typology and location the authors sort out different frontier zones and carry out vertical and horizontal analysis of statistical data related to basic capital investments. The results of the analysis are presented in graphic charts. The authors attempt to characterize investment processes in the regions from the aspect of their geopolitically and economically advantageous frontier position. The novelty of the research lies in the original approach to the comparison of the regions according to their investment activity from the standpoint of groups of regions united in typological zones, rather than separate regions.  The revealed zonal differences allow the authors to conclude that investment activity is influenced not so much by the factor of frontier location, as by the access to natural resources, first of all in fuel and energy sector, and the possibility of access to large product markets in the conditions of a developed transport-logistic infrastructure and a capacious internal consumer market. 

Abstract: Basic capital investment is the main catalyst of a dynamic economic growth. Due to the institutional changes in the sphere of property, the investment market becomes more dependent on the motivation of investors in the existing market conditions. The investment level depends on the socio-economic situation in the country and on the external challenges. The research is aimed at the assessment of the influence of investments on the dynamics of the GDP and of the possibilities of investments stimulation in a complicated situation on the finance market in the conditions of restrictions and anti-Russian sanctions. The authors use the methods of analysis, synthesis, generalization, comparison, and grouping. The empirical base contains the statistical data which allows analyzing structural shifts, tendencies and sources of financing of basic capital investments. The authors define the interactions between the investment dynamics and the GDP for the period from 1990 till 2014. The results of the research are presented in a graphical form. The authors substantiate the conclusions about the increase of influence of corporate structures on the activation of investment activities in certain sectors of the economy, and define the role of the government and the importance of foreign investments in the investment sphere. The authors reveal the logic of a more rapid growth of economy in relation to basic capital investments in terms of its renewal. The multiplier effect appears when modernizing basic capital. 

Abstract: The needs of the population bring to life the necessity of developing a competitive market of financial services that, however, should not permit suppression of regional banks and other structures engaged in save-and-loan activity, by large credit and financial institutions. Upgrading the efficiency of economy implies freedom of entrepreneurship and development of various types of property. Freedom that liberates an individual’s entrepreneurial initiative should be backed with possibility of realization – first of all, availability of resources (including credits); otherwise, it would have rather negative than positive effects. Moreover, competition endows an owner of free monetary resources with a possibility to place them in a business where their safety and purchasing power is best ensured. Development of the market of microfinance services, which is an inalienable part of a financial market, is currently becoming one of the main conditions of forming a competitive landscape. One of the most crucial problems here is providing the reliability of regional financial institutions. Aiming at that, the Central Bank of Russia is toughening its requirements towards all credit and financial institutions, changing the framework of their activities.
The article analyzes conditions for forming organizations that provide microfinance services. The author aims at outlining the role of institutions of micro-financing in the development of the economic potential of regions and municipalities. Particular attention is attached to the role of credit cooperation.
The author uses the deductive method and the method of comparative analysis of historic realia. He bases on the evolutionary theory, with adherence to the concept of stadial typology of economic development. The novelty of the author’s approach is his suggestion to estimate the market of microfinance services from the position of the interests of regions and municipal units and not of the entire Russia’s market. 
The article gives proofs of the necessity to develop microfinance institutions that directly influence social and economic development of a region. Comparing the conditions of functioning of banks and microfinance structures under the Russian government’s current policy, the author comes to the conclusion of small effectiveness of the current approach of Russia’s Central Bank towards controlling both large and small financial and credit institutions. The results of the author’s analysis show that the government’s management has created several competitive advantages to large structures, to the disadvantage of small ones, and that the competitive landscape needs several corrections.

Abstract: The author of the article analyzes the position of regions that have been included in the top ten and the last ten regions based on the produced gross regional product. This is a very topical issue to study because the gap between the aforesaid groups of regions is quite significant: for a long period of time the leading regions have been superseding regions outsiders by 50 times or even more. This gap isn't  closing at all. The author of the article considers particular factors that have an impact on the position of regions in the first and the last groups of Russian regions where the main emphasis is placed on the GRP structure. Industrial capacity of leading regions, as the most significant factor of successful development of economy is estimated. In regions outsiders the factors interfering effective use of resources, breaking optimum proportions of structure of a value added are also allocated. In research of regional development the comparative method, the vertical and horizontal analysis is used. On their basis the main proportions of analyzed indicators, absolute and relative values of compared indicators are defined. The main result of the conducted research is revealed by the author of disproportions in structure of VRP of polar groups of the regions, causing gap depth between leading and lagging behind regions. The author considers that at this conjuncture the main emphasis of distributive policy of the state has to be placed on stimulation of economic activity in regions outsiders. The policy of redistribution operating for today, is inefficient. At its invariance in a situation of the deepest differentiation of regional development increase of the centrifugal forces conducting to disintegration of communications, in lagging behind regions will be prompter, and the capacity of leading regions as powerful centripetal force will constantly support these centers of growth.

Abstract: The problem of labour mobility is usually viewed as the part of current economic changes that create the need to transfer labour resources. Many researhers focus on living conditions that arise after an employee moves to a new place of work and residence. Noteworthy that these researchers believe that the important goal of the housing policy should be accomodation of workers because today labour mobility is rather limited due to the fact that it is impossible for a worker to find a new place of residence in a new region. The author of the present research article analyzes the process of labour migration within the industry sector and intensity of such migration depending on different ecoomic activities. Special attention is paid to the processes of acceptance and dismissal of employees in in economic sectors with a high level of labour mobility. The present research of the problems of labour migration is based on the comparative analysis and statistical evidence about the changes in the number of accepted and dismissed in relation to the average number of employees performing a particular economic activity. The scientific importance and novelty of research is the discovery of optimal proportions of the transfer of human capital assets that is supposed to encourage career advancement and personal self-improvement. 
The author concludes that in some sectors, especially in the service sector, a high level of labour mobility decreases the quality of human capital assets and therefore lowers the quality of the services offered. In order to provide competent staff in the economic sector, it is necessary to pay more attention to improving the working conditions and payment for hired employees. 

Abstract: The article discusses the methodological approaches to the analysis of regional development. The subject of the research is the examination of social and economic processes that determine the development of the region. As in recent years there has been an increasing unevenness in the development of the Russian regions, the research focuses on the search for the unity of the Russian regional and state economic policies aimed at smoothing the spatial inequalities. The analysis is an important element in the management and definition of the regional economic policy. The policy should be based on the current state of the economy and targeted at the achievement of economic advantages taking into account the exceptional diversity of natural, geopolitical, social and economic, national, cultural and other conditions ensuring the effective development of the region. The author discloses the concept of methodological basis of analysis of the region's economy, its goals and objectives; methodological approaches to systems analysis; the basis for political analysis of the regional economy as the economic policy influences business reaction and promotion of entrepreneurial initiatives. The author recognizes that the regional economy is a complex object of study in terms of analysis and forecasting of its development. Thus, the applied methods of analysis should be considered as far from being exhaustive. A large set of factors that impact on the regional development should be taken into consideration. However, the main methodological approaches to the analysis of the regional economy presented in the research work allow to use them to evaluate social and economic processes taking place in the region, the impact of political decisions on entrepreneurial activity, investment climate, etc. The author concludes that the use of different methods of analysis along with their improvement contribute to the development of positive economic policy that should stimulate the growth of regional economy.
 

Abstract: Disproportionality of territorial development is one of the main social, economic and demographic problems in Russia. Concentration of production and finances within a rather small portion of the Russian regions facilitates the re-distribution of resources in their favor, leaving vast peripheric territory without any real chances for overcoming their disadvantages in the economic development. The object of studies involves the process of concentration of resources in the industrial and banking spheres from the standpoint of the individual and group resources, including the interests of the state.  The author points out the positive elements of this process in the conditions of the globalization, as well as the negative consequences of the over-concentration, including differentiation of regional development, as well as environmental tension in the industrially developed regions.  Based upon the comparative analysis the author singles out the regions of the foremost concentration of industrial and banking capital.  The process of concentration is regarded by many scientists at the micro-level.  The author attempts to evaluate the influence of concentration of capital upon the regional development. The study showed that the process of concentration of capital from the standpoint of the national interests is necessary for the sustainable economic development, while individual interests form the priority goal for for any economic subject. At the same time, the negative sides of over-concentration should be taken into account. Concentration of resources and polarization of territories are mutually determined temporally.  There is need to develop the mechanisms for the more efficient distribution of resources, involving small and midle-range businesses into the sphere of interests of large economic subjects in order to even out the development of the territories.

Abstract: The Republic of Karelia has a number of positive features compared with other northern regions of the Russian Federation, since it has a rather lengthy border with Finland, and accordingly it has connections with the markets of the European Union.  Usually such a factor may facilitate diffusion of innovative and investment activities into the Republic from the developed states.  Additionally, the Republic has a developed scientific and educational basis. However, the level of innovative and investment activities in Karelia is among the lowest in the North-Western Federal District, and in Russia in general.  The article includes analysis of innovative and investment activities in the region and the limitations precluding innovative development.  The authors reflect the tendencies of social and economic development in the region, taking into account various factors, such as progressive structural  moves in the economy, changes in the values and attitudes, investor motivation, etc.  Having evaluated innovative potential of development of the regional economy, the authors come to a conclusion that its greater involvement into the market turnover shall facilitate the improvement of the economic positions of the region, making it more competitive, and it shall also provide for stability in the labor market and demographic processes.  However, if a inertia scenario is followed without the direction towards innovative economic development, the destructive tendencies in production mobility, human capital mobility shall be strengthened, which is evidenced by the negative migrant flow.

Abstract: Russian regions are very diverse both by their levels of socio-economic development and attraction of capital. The authors of the present article study factors influencing dispose of foreign investments across Russia and outline areas of their minimum and maximum accumulations. The authors of the article also view problems of spatial disparity in allocation of investments and define the most significant factors to be considered by foreign investors. By using the cartographic tools, the authors managed to define the areas of accumulation of foreign capital and compare them to the density of transport network. The outlined investment diagonal where the most attractive regions are located falls on the network of the most important transport corridors and transport and logistics centers. The diagonal lies from the North-West to the South-East of Russia and fits in the network of international transport corridors. For instance, the Nizhny Novgorod Region has very good opportunities for attracting foreign investments because it is located in the center of transport routes where the North-South and West-East corridors are crossed (International European corridor No. 2  and Trans-Siberian Railway). Based on the results of research, the authors of the article conclude that in order to improve investment climate and attractiveness of Russian regions, it is necesary to improve the system of transport and logistics routes to allow a quick and qualitative delivery of goods throughout Russia. 

Abstract: The article is devoted to increasing disparity between regions. Over the years of reforms, many Russian regions have started to lose their benefits and preferences. Volumes of investments in different regions start to vary greatly, too. The author of the present article describes the structure of investment financing including state financing and defines the most preferred activities to invest into. In the course of this reseach, the author has defined problems of inequality of regional investment attractiveness which leads to different socio-economical levels in these regions. This creates a threat for the common economic space and intergrated regional system. Integrity of a region as a complex socio-economic system is shaken when there is a significant capital outflow, let it be finances, human resouces or finances. When a region becomes inattractive for investors, the capital and assets of such a region flow to stronger regions and make the problem of spatial inequality even worse. Such inequality is defined by the economical strucure in many ways. Only progressie changes and shifts in the structure of regional economy can raise the competitive ability of a region. But first it requires investments into manufacturing activities (because the majority of such regions do not have their own manufacturing sector). On the other hand, manufacturing sector has lost its competitive position under the conditions of open economy.