Economic growth vs. eco-efficiency of Russian industrial regions

Abstract

The article focuses on issues of economic growth, and eco-efficiency in Russian industrial regions on the example of the Urals Federal District. The study is based on the concept of existing tensions between economic development, and eco-efficiency. The author claims that within this concept an optimum could be found. The purpose of the study is to determine the most optimal industrial growth rate within the Urals Federal District. Industrial production representing 50% of the sectoral gross value added structure is the key factor of economic growth in the researched regions. This basic hypothesis of the study is confirmed by a relatively strong correlation between industrial growth rate and Gross Regional Product growth rate in Sverdlovsk region, Tyumen region, and Chelyabinsk region. As part of the study the author made use of correlation analysis, which confirmed the basic hypothesis of the research, and paired regression analysis, where industrial production growth rate is used as a regressor to build paired regression models. Economic growth is estimated via Gross Regional Product growth rate. For every sector, where the basic hypothesis is confirmed, there is a graphical model illustrating dependence of economic growth (E1), and eco-efficiency (E2) on industrial growth rate. The study discovers optimal industrial growth rate providing development of eco-efficiency in the researched regions. The results of the study can be applied both by scientists or government structures in strategies of regional development taking into account eco-efficiency.