Pushkinskaya st. 43. office 10
Rostov-on-Don, Russia
e-mail: info@hjournal.ru 
tel. +7(863) 269-88-14

cubsEN (2)

Impact of behavioural and institutional factor upon territorial social-and-economic development: a case of company town

Impact of behavioural and institutional factor upon territorial social-and-economic development: a case of company town

Journal of Economic Regulation, , Vol. 9 (no. 2),

Efficiency of public regulation of territorial development to a considerable extent depends on the established system of institutions and the specifics of the agents’ economic behavior. Devising and implementing a territorial development strategy is determined by the conduct pursued by the agreement participants. There are three basic concepts of territorial support: maintaining the existing enterprises, supporting investment projects as well as creating or modernizing a territorial infrastructure. Content analysis of a number of documents on strategic development of Siberian territories leads to a conclusion that the federal centre has no intentions to accelerate problem-solving in terms of regional development. The present state and general trends reveals low efficiency of regulations designed to develop company-town economies in the Russian Federation. The modern institutional system of regulation facilitates rent-seeking and opportunism of the holders of administrative barriers. Agreements related to development of company towns can be successfully reached and consummated when taking into account the interests and economic incentives for a broad range of agents, any of whom can deliberately or unwittingly prevent efficient resources allocation at their level. Differences of private interests of economic agents, manifested through the technologies of state support for company-towns, are shown.

Keywords: crisis management, fiscal policies, behavior of economic agents, institutions, rent-seeking

  • Buchanan, J. M., Tollison, R. D. and Tullock, G. (eds.) (1980). Toward a Theory of the Rent-Seeking Society. College Station: Texas A&M University Press, 39–50.
  • Company Town of the Russian Federation. (http: //xn--80afd4affbbat.xn--p1ai/about – Access date: 05/02/2017. (In Russian).
  • David, P. A. (1985). Clio and Economics of QWERTY. Economic Review, 75(2), 332–337.
  • Eggertsson, T. (2001). Economic Behavior and Institutions. M., Delo, 408 p. (In Russian).
  • Kapoguzov, E. A. and Zapeka, L. I. (2014). State programs as a new instrument of public administration: to the question of assessing effectiveness. State and municipal management. Scientific notes SKAGS, 3, 49–57. (In Russian).
  • Kirdina, S. G. (2001). Institutional matrices and the development of Russia: monograph / S.G. Kirdina. Novosibirsk: IEEP of the SB RAS. (In Russian).
  • Krueger, A. O. (1974). The Political Economy of the Rent-Seeking Society. American Economic Review, 64(3), 291–303.
  • Kurbatova, M. V., Levin, S. N. and Aparina, N. F. (2005). Interaction of power and business at the municipal level: the practices that prevailed in the Kemerovo region. Economic Sociology, 6(2), 50–68. (In Russian).
  • Litvintseva, G. P. and Stukalenko, E. A. (2010). Effectiveness of social institutions in the sphere of state policy of population incomes in Russia taking into account the regional factor. Journal Of Institutional Studies, 2(2), 38–54. (In Russian).
  • Malysheva, E. (2017). The Crisis Covered a Company Town. The Chamber of Accounts found the deterioration of the economic condition of Company Town. (https://www.gazeta.ru/business/2017/05/18/10679105.shtml – Access date: 05/18/2017). (In Russian).
  • Manaeva, I. V. and Rastvortseva, S. N. (2016). Methodological Toolkit for Assessing the Competitiveness of a Company Town. Regional economy: theory and practice, 5, 23–39. (In Russian).
  • Melnikov, V. V. (2014). The Origin of Opportunism: Psychological Basics of Economic Behaviour. Terra Economicus, 12(4), 91–104. (In Russian).
  • North, D. (1990). Institutions, Institutional Change and Economic Performance. USA: Cambridge University Press, 152 p.
  • Novoselov, A. S., Marshalova, A. S. and Kashun, T.A. (2011). Problems of increasing competitiveness and activating the economic development of municipalities. Problems of regional and municipal government / Ed. A.S. Novoselov. Novosibirsk: IEEP of the SB RAS, 127–140. (In Russian).
  • Report on the results of the activities of the non-commercial organization “Fund for Development of Company Town” for 2016. (http://www.frmrus.ru/upload/manual-upload/report_2016/report.html#p=2). (In Russian).
  • Rutskiy, V. N. and Pyzhev, I. S. (2015). Institutional problems and development perspectives innovative entrepreneurship in resource economics. Journal of Institutional Studies, 7(4), 128-137. (In Russian).
  • Sablin, K. S. (2012). Institutes of development and quasi-institutions of development: the importance of the institutional environment. Journal of Economic Theory, 3, 177-181. (In Russian).
  • Shmakov, A. V. (2013). Compensation as the Mechanism of Stimulus Creation. Terra Economicus, 11(1), 80–93. (In Russian).
  • Stigler, G. (2017). The Citizen and the State. Essays on Regulation. Moscow, 336 p. (In Russian).
  • System analysis and problems of urban development (1983). / Ed. S.V. Emelyanova. Moscow: Science. The main edition of physical and mathematical literature, 512 p. (Series “Theory and methods of system analysis”) (In Russian).
  • Tambovtsev, V. L. (2016). Theories of Institutional Change: A Textbook. Moscow: Prospekt, 160 p. (In Russian).
Publisher: Ltd. "Humanitarian perspectives"
Founder: Ltd. "Humanitarian perspectives"
Online ISSN: 2412-6047
ISSN: 2078-5429