Diversification as a Factor in the Efficient Economic Development of the Republic of Sakha (Yakutia), Russia

Abstract

This article empirically substantiates an approach to the diversification of the regional economy of the Republic of Sakha (Yakutia). The authors used data samples for all Russian regions to determine cause-and-effect relationships between the development indicators of the mining, manufacturing, and construction industries. The authors applied regression analysis and the VAR-model to assess the impact of the diversification of the regional economy on the gross regional product regarding the manufacturing, mining, and construction sectors. The obtained results proved the feasibility of diversifying the regional economy for its stable economic development, especially in the long term. This paper presents a universal approach to assessing the region's long-term economic development through the diversification of its economy.