Regional economical policy and structural changes in the economy of Russian cities

Abstract

The development of region's strategy of economy modernization requires an understanding of which competitive ability factors must be put in its basis. Praxis shows the strategy built on usage of natural factors to promote the narrow specialization of a region (usually concerned with resource mining and production of part-through materials). Strategy based on newly created factors enables to create the secondary competitive advantages and contributes to a region's economy. On this basis the author has carried out the analysis of Russian regions that allowed to determine the factors of its competitive ability and to estimate how effectively they are used. On the ground of its results the standard strategies of modernization and competitive growth are proposed.