Vulnerability of Regional Economies’ Structure in Crisis Conditions

Abstract

The impact of coronavirus on the socio-economic development of Russian regions inevitably depends on the structure of their economy, which is analyzed in the article on the basis of official data on the employment structure. The contribution of different sectors of the economy (primary, secondary, and tertiary), the role of informal employment and the budget sector, and the share of employment in the most affected industries are evaluated. Not only short-term, but also long-term structural problems of the regional economy are highlighted. It is shown that the negative impact of coronavirus mainly on the service sector in the context of the Russian Federation subjects is evident in federal cities, in economically underdeveloped regions with an underdeveloped real sector of the economy, as well as regions that specialize in certain types of services (tourism, foreign trade, complex services). For economically underdeveloped regions, the impact of coronavirus is deepened by a high share of the informal sector (which limits the possibility of obtaining state support), but is softened by an increased share of employees who receive wages from the budget system. The reduced share of the service sector in agricultural regions means that they are less dependent on coronavirus, but it confirms the need to develop the service sector as a basis for improving the quality of life of the population. At the same time, almost everywhere there is a need to restructure the service sector: reducing the role of simple services (primarily trade), in favor of complex ones related to high technologies and innovations and to the social sphere, especially health.