Relevance. Traditional trade analyses focus on bilateral ties, overlooking the interdependencies that shape modern global trade. Complex network analysis addresses this gap by capturing systemic patterns and tracing how changes in one link affect the entire system. This method thus provides essential insights into trade vulnerability, market access, and structural evolution. Research Objective. The study aims to investigate the structural evolution of centrality features in the global tea trading network (GTTN) from 2005 to 2020. It examines the shifting roles of key players, trade disruptions, and the overall stability of the international tea trade system. Data and Method. The GTTN is constructed from bilateral tea trade volumes. Using R and Gephi, the study applies network metrics, which include degree distribution, betweenness, proximity, eigenvector centralities, and modularity-based clustering, to assess structural changes and trade dynamics among major tea-importing and exporting nations. Results. The analysis shows significant shifts in the positions of leading players, with shifts that elevated some players and reduced the roles of others. The GTTN exhibited a compact, scale-free structure that became more complex over time. Major producers dominated exports, with China acting as a stabilizing force. Pakistan remained the largest importer but relied heavily on limited suppliers. Overall, the network evolved into a more structured and resilient system. Conclusion. The study offers a comprehensive view of the GTTN’s evolution, identifying key trends and disparities in the international tea trade. It contributes to understanding global trade networks and informs policies aimed at enhancing trade stability and efficiency.
Relevance. In recent years, the creative economy has received increasing attention worldwide. However, in the Commonwealth of Independent States (CIS) countries, the share of this sector in GDP is significantly lower than the world average, indicating that its development potential is underutilized. Purpose of the study. Conducting a comparative analysis of approaches to designing a creative economy state regulation system in Russia, Kazakhstan and Kyrgyzstan. Methods and data. This study employs a comparative analysis to examine the development of creative economy legislation in Russia, Kazakhstan, and Kyrgyzstan – the CIS nations that have made the most significant progress in this sector. We investigated the core concepts, national laws, and the process of institutionalizing creative industries in these countries. The proposed approach allowed to compare the institutional environment for the development of creative industries in Russia and countries with similar initial socio-historical and economic characteristics, and which are at relatively early stages of the formation of the creative sector compared to countries with developed market economies. Findings. A comparative analysis of creative economy state regulation system in Russia, Kazakhstan and Kyrgyzstan was conducted. The comparative analysis identified the following features of the state regulation system formation: common conceptual approaches to institutional design, the choice of authorized bodies at the stages of formation; concentration on the specific problems of each country in the field of intellectual property protection, the formation of creative clusters, statistical accounting of creative industries at the present time. Conclusion. The study revealed that national approaches to designing creative economy state regulation system in Russia, Kazakhstan and Kyrgyzstan have their own characteristics related to the pace, scope and quality of rule-making; approaches to assessing the scale of this sector, choosing objects of support at the micro level. It is shown that along with the adoption of concepts and national laws on the development of creative industries, a holistic institutional environment should be formed so that it will outline not only conceptual approaches, but also define clear "rules of the game", state priorities in this area and measures to support entrepreneurs.
Relevance: Global economic growth has intensified concerns about environmental degradation, particularly in rapidly expanding economies such as the BRICS Plus countries. These countries contribute significantly to global GDP and trade, yet face rising challenges involving carbon emissions, resource scarcity, and socio-economic inequality. Understanding how inclusive growth affects the environment and how institutional quality shapes this relationship is essential for advancing sustainable development goals. Research Objective: This study examines how inclusive economic growth affects environmental degradation, measured through CO₂ emissions, and assesses how institutional quality, specifically regulatory quality and government effectiveness, moderates this relationship in BRICS Plus countries. Data and Method: This study uses macro panel data for BRICS countries from 2000 to 2023 and applies a quantitative design using several analytical techniques. Panel Ordinary Least Squares (OLS) provides the baseline estimates, while the Dynamic Generalized Method of Moments (GMM) is used to address endogeneity, with static OLS informing instrument selection. Inclusive growth is measured using the Social Mobility Curve (SMC) and a PCA-constructed index. The Environmental Inclusive-Growth Kuznets Curve (EIKC) framework is applied to examine the relationship between inclusive growth and environmental degradation, focusing on CO₂ emissions. Results: The findings support the Environmental Inclusive-Growth Kuznets Curve (EIKC) hypothesis. At early development stages, inclusive growth increases CO₂ emissions due to industrial expansion and energy-intensive activity. After reaching a threshold, however, greater inclusiveness leads to environmental improvement. Institutional factors such as government effectiveness and regulatory quality strengthen the link between inclusive growth and environmental outcomes. This suggests that in BRICS Plus countries, institutional efficiency still tends to favor economic gains over environmental protection, which can amplify ecological pressures when incentives are oriented toward growth. Conclusions: To ensure sustainable development in BRICS Plus countries, it is necessary to align institutional performance with environmental goals. Stronger environmental regulations, integrating sustainability metrics into governance evaluations, and improving policy coherence between social inclusion and environmental management are essential for ensuring that inclusive growth supports sustainability rather than contributing to additional environmental costs. Future work could examine subnational or sectoral patterns, broaden the set of environmental indicators, and analyze how formal and informal institutions differently influence sustainable inclusiveness.
Relevance. The new wave of industrialization, driven by high-tech sectors, relies on rare earth metals, whose production is technologically complex. This makes a country’s global position dependent not only on the size of its reserves but also on its ability to maintain them in pure form. Research Objective. The study seeks to identify key trends in extraction, production, and consumption of rare earth metals in national and global markets, and to assess prospects for developing this industry in Russia. Data and Methods. The analysis relied on desk research methods, including data collection, interpretation, and synthesis. The main sources were the US Geological Survey and Russian State Reports on the condition and use of mineral resources for 2022–2023. Results. Rare earth metals are gaining strategic importance in emerging technologies. In the case of Russia, the analysis identified several obstacles to developing its rare earth industry: uneven distribution of deposits; fragmented production and processing chains; a limited share in global extraction despite significant reserves; a domestic consumption structure that differs from global trends; fluctuations in world prices; supply constraints related to natural and secondary raw materials and processing technologies; and high investment risks in the sector. Conclusions. To overcome these challenges and achieve technological sovereignty, Russia must expand its rare earth industry by reducing dependence on foreign suppliers, relying on domestic resources, and aligning domestic demand with supply. Stronger state involvement and the creation of integrated production and technological chains are essential to meet the needs of the national economy and ensure sustainable industrial development.
Relevance. Rare earth metals (REM) play an increasingly important role in the modern economy, particularly in the production of high-tech goods. The study aims to propose measures to improve state policy for stimulating the production and use of REM in the Russian economy. Research Objective. The study aims to compare the growth of prices for REM ores and for products manufactured from them, identify discrepancies in growth rates, analyze the underlying causes, and develop measures to address them. Data and methods. Statistical and econometric methods were applied to examine price dynamics for manufactured goods and REM ores across the Russian economy as a whole and in five key regions engaged in ore and concentrate extraction. Results. Domestic prices for REM ores have grown at a significantly faster rate than prices for manufactured goods. This outcome is mainly explained by the principle of equal profitability in raw material supply for export and the domestic market, along with the persistent weakening of the ruble, which pushes up domestic ore prices. Conclusions. If domestic raw material prices are kept lower than world prices, this could give the Russian economy a strong incentive to expand high-tech production. To achieve this, one possible measure is to restrict raw material exports and limit imports of manufactured products, which, given the inoperative WTO court, would not entail negative consequences for Russia.
Relevance. Regional and municipal policies supporting creative industries are more effective when integrated into the broader ecosystem and aligned with its internal logic. Their success depends on the ability to reflect and communicate the sociocultural code of the territory, which calls for a shift from a purely sectoral approach to territorially tailored support measures. Objective. The study aims to design a creative industries ecosystem that reflects local identity and supports the implementation of tailored regional policies for the sector. Methods and Data. Using a comprehensive approach, the study treated regional creative industry support as an integrated ecosystem. Methodology also included comparative and institutional analysis, classification, and conceptualization. Empirical sources encompassed strategic documents, industry forum outcomes, and the authors’ earlier research, notably a validated typology highlighting the varying importance of local identity across creative industries. Results. The article outlines a concept of a regional support ecosystem where creative industries transmit and shape local identity, ensuring its dynamic development. The study proposes an iterative algorithm for developing individualized policies for the support of creative industries, encompassing the stages of diagnostics, strategy formulation, implementation, and evaluation. State support measures are classified according to the significance of local identity for different types of creative industries. The study's contribution to the field lies in integrating the concepts of local identity and the ecosystem approach in the context of the creative economy. Conclusions. The proposed algorithm can guide the transformation of a territory’s cultural heritage and unique resources into competitive creative outputs, promoting economic growth, preserving cultural diversity, strengthening social capital, and supporting sustainable regional development.
Relevance. Rising demand for rare earth elements (REE), coupled with China’s dominance in reserves and processing, is driving Western countries to seek alternatives in Africa. Although officially recorded African reserves account for less than 5% of the global total, including unrecorded deposits the continent may hold about one-third of the world’s supply. Research Objective. The study aims to determine the position of African countries in the global REE market amid intensified competition between ‘old’ players (EU, United Kingdom, Australia, Canada) and ‘new’ players (USA, China). Data and methods. In addition to monographs and research articles, the study uses primary and secondary statistical data and employs comparative cross-regional and cross-national analysis. The research follows the technological chain of REE production, from Africa to global markets, covering the period from 1952 to mid-2025. Results. Although metal production is still virtually absent in African countries and only the lower segments of the technological chain have developed, African countries, primarily South Africa, are asserting themselves as independent actors in global rare earth markets. This trend is facilitated by higher returns from foreign investment in rare earth mining in Africa, amid the Juglar-type cyclical fluctuations of market prices and the current upward phase of the price cycle. Conclusions. In the near future, Morocco, Nigeria, Burundi, and Zambia are expected to become the main arenas of competition between the ‘old’ and ‘new’ players for REEs in Africa. The first two are likely to fall under Western influence, the latter two under China’s.
Relevance. Central Asia holds vast reserves of critical metals and minerals such as lithium, nickel, aluminum, copper, uranium, and rare earth elements, offering strong potential for integration into global value chains. However, its resource-dependent export model and institutional barriers hinder investment and industrial processing. Kazakhstan, with the region’s largest resource base, plays a key role in shaping its critical metals and minerals strategy. Objective. The study aims to develop an evidence-based strategic framework for Kazakhstan’s export policy in critical metals and minerals, taking into account other Central Asian countries. It relies on comparative analysis, institutional assessment, and scenario-based forecasting. Methods and Data. The methodology combines time-series analysis of export dynamics using data from international trade databases (UN Comtrade and ITC Trade Map), forecasting for 2025–2027, a comparative institutional analysis of the models of Australia, Chile, and Kazakhstan, as well as an evaluation of regulatory quality based on international indices and analytical sources. Results. Modeling indicates a steady rise in Central Asian exports to Europe and Asia but also highlights structural imbalances and institutional barriers that hinder a transition from a resource-based model to sustainable development. Using Kazakhstan as a case study, the study proposes a framework emphasizing deeper processing, export diversification, and integration of environmental, social, and governance (ESG) standards. Conclusions. Central Asia holds strong potential to contribute to the global energy transition, with Kazakhstan best positioned to lead a long-term export strategy. The proposed framework combines national and regional perspectives to foster industrialization, attract investment, and strengthen the region’s role in the global economy.
Relevance. The study’s relevance stems from the need to resolve a fundamental contradiction in spatially distributed state financing to prevent inefficient resource allocation and reduce inequality. Research Objective. The study seeks to examine specialized theories and present a practical approach to estimating the social discount rate for the effective implementation of state social policy and public financing. Data and Methods. The study relies on mathematical modeling in combination with comparative and statistical analysis of empirical data, while theoretical and interpretive approaches provide the basis for justifying the chosen calculation model (intertemporal preferences) and critically evaluating the results. This integrated approach was used to calculate and assess the social discount rate for 85 Russian regions. Results. The study highlights the theoretical and heuristic differences among approaches to estimating the social discount rate, explaining why the intertemporal preference method is most appropriate and distinguishing between stationary and non-stationary economic assessments. It provides an objective interpretation of the Ramsey formula parameters, grounded in primary sources and mathematical constructs. Social discount rate values were calculated for Russian regions, revealing spatial variation and a notable discrepancy between the calculated mean rate (4.26%) and the Central Bank’s key rate (18%). Conclusions. The proposed methodology for calculating a differentiated social discount rate for each Russian region enables a shift from a uniform approach to a targeted evaluation of social investment effectiveness. In other words, it provides a practical tool to support more informed and equitable budget policy decisions under present economic conditions.
Relevance. The transition to a platform-based model in the public sector depends on stakeholders developing interoperability skills and a flexible technological infrastructure. Yet, the adaptation of industry-specific technologies to such platform architectures remains an open research question. Research objective. The study aims to define the current state of digital healthcare and provide an evidence-based rationale for its development prospects in an emerging healthcare platform. Data and methods. Topic modeling was applied to a dataset of 60 digital innovations from 56 Russian regions, implemented between 2019 and 2024 as part of regional projects for a unified digital healthcare contour. Findings were further validated using factor analysis and clustering, incorporating official statistics and data on technical and regulatory aspects of innovation adoption across regions. Results. Сollaborative business models involving all healthcare actors and remain low-priority in public health governance. Statistical analysis confirms the high importance of economic and regional aspects, while regulatory aspects that determine the order of administration and technical interaction between stakeholders also have a moderately positive impact. Discussion. Digital innovations in public health were qualitatively and quantitatively assessed through the prism of the concept of responsible healthcare. Findings exposed a disparity: while digital innovations prioritized economic and healthcare outcomes, they consistently overlooked collaborative governance models. The results provide a foundation for future research on how innovation providers and public sector actors have adapted their business models to ensure transparency, accountability, and collaboration.
Relevance. The pressure of sanctions and other external economic disruptions is reshaping Russia’s industrial agenda, as the attainment of industrial sovereignty is now contingent on harmonizing national and regional interests across a heterogeneous economic landscape. Research objective. The study aims to examine the connectivity of industrial space in Russia as well as the key factors contributing to the country’s industrial sovereignty, namely industrial production, the output of high-technology goods, and the production of innovative goods across regions. Data and method. Methodologically, the study relies on structural and functional approaches and includes an analysis of the dynamic characteristics of regional system development. The study applies spatial autocorrelation parameters to examine trends in industrial sector development for 85 federal subjects of Russia over the period of 2015–2024, using data from the Unified Interdepartmental Statistical Information System of the Russian Federation. Results. The study identifies differences in the nature and strength of interregional connectivity, as well as the multidirectional impact of sanctions on the cohesion of Russia’s industrial space. Since 2021, highly connected regions have shown stronger industrial growth, forming “hot spots” that enhance the resilience of industrial production. By classifying regions according to their level of involvement in interregional relations, the study identifies stages of regional economic development through which regions can advance and build industrial self-sufficiency despite external shocks, thereby strengthening Russia’s overall economic sovereignty. Conclusions. To assess Russia’s prospects of achieving industrial sovereignty, the study analyzes the connectivity of its industrial space and demonstrates the potential of the proposed analytical tools. Effective interregional cooperation in producing innovative high-tech goods can help neutralize the impact of sanctions and disruptions to global economic linkages.
Relevance. Increasing national export support is becoming increasingly important for regional economic development. To enhance the effectiveness of such support, it is crucial to understand the relationship between financial export support and regional economic growth. Research Objective. The study aims to assess the impact of the state financial export support on regional economic growth, focusing on the national project “International Cooperation and Export”. Data and Methods. The analysis covers 81 subjects of the Russian Federation from 2019 to 2024, totaling 486 observations. Quantile regression is employed to examine how explanatory variables affect different points of the dependent variable's distribution (lower, median, and upper quantiles), which is particularly useful for analyzing heterogeneous regional systems. Results. Using the proposed methodological approach, asymmetric effects of economic policy and project support on regional development were investigated. Regions were divided into three quantile groups based on financial export support: low (up to 0.33), medium (0.5), and high (0.667). The quantile regression model confirmed its statistical reliability. The analysis revealed significant heterogeneity in the impact of financial support for regional projects: stable positive effects were observed only in regions with the highest funding (upper quantile). The findings highlight the need to shift from universal support measures toward differentiated strategies tailored to regional typologies. Conclusion. The effectiveness of export support depends on adopting targeted strategies that reflect regional characteristics. The study provides evidence-based recommendations to improve the impact of state export support on regional development.
Relevance. Over the past three decades, the Asia-Pacific region has attracted more than half of the world’s foreign direct investment (FDI), most of it staying within the area. Trade and economic agreements designed to lower barriers have played a key role in attracting FDI across the region. However, research on the effects of these agreements is limited and often focuses on individual economies. Given the area’s economic diversity, the long-term impact of such agreements on FDI inflows, as well as how these effects compare with global trends, remains unclear. Research Objective. The study aims to provide quantitative estimates of the long-term impact of trade and economic agreements on accumulated FDI inflows in the Asia-Pacific region. Data and Methods. The study uses a structural gravity model with panel data on bilateral FDI flows between Asia-Pacific countries for 1992–2023. The dependent variable was compiled from international and national databases. Estimates were obtained using the Poisson pseudo-maximum likelihood method. Results. The long-term positive direct effect of agreements came primarily from extended free trade zones (FTA+), which increased FDI inflows by 35%. Other trade agreements had little direct effect, while bilateral investment agreements actually restrained FDI inflows. The study also found the following accumulated effects: FTA+ and investment agreements boosted FDI inflows by 37% and 16%, respectively, whereas trade agreements without provisions to facilitate FDI reduced inflows by 59%. Conclusions. In their investment interactions Asia-Pacific countries adopt different long-term strategies. Some promote FDI through FTA+ and investment agreements, in line with global patterns, while others limit foreign capital via trade agreements that lack measures to reduce FDI barriers.
Relevance. Monetary and financial policies play a crucial role in shaping trade in critical mineral goods, particularly where strong law and order are vital for sustaining trade and mitigating the effects of external conflicts. This study examines Russia’s mineral exports to other BRICS nations—a topic of growing strategic and regional importance. Research Objective. The study explores how monetary and financial policy variables, specifically inflationary pressures and financial market volatility, affect Russia’s mineral exports to BRICS partners, considering the influence of domestic law and order conditions and external conflicts over 1996–2023. Data and Methods. Using data for 1996–2023, the analysis applies advanced econometric techniques to address heterogeneity, cross-sectional dependence, and endogeneity. These include the method of moments quantile regression (MM-QR), Driscoll–Kraay standard errors (DKSE), and high-dimensional fixed effects (HDFE). Robustness is further assessed through structural break analysis. Results. Inflationary pressures consistently reduce Russian mineral exports across all market conditions (quantiles q.25–q.95). Financial market volatility primarily constrains exports during bull markets (q.50–q.95). Law and order conditions have a uniformly positive impact, while external conflicts hinder exports in bear markets. The interaction between law and order and external conflict strengthens exports, highlighting the conflict-moderating role of strong institutions. Results remain robust under HDFE and structural break tests, though external conflict loses statistical significance when cross-sectional dependence is controlled via DKSE. Conclusions. The findings emphasize the need for prudent monetary and financial management and underscore the importance of strong domestic institutions in sustaining Russia’s regional mineral trade amid external challenges.
Relevance. Spatial heterogeneity in economic resilience is a critical but understudied issue in Indonesia, where persistent uneven development becomes especially evident in the context of major shocks like the COVID-19 pandemicResearch Objective. This study aims to examine whether the spatial heterogeneity of economic resilience in Java, Indonesia, during the recent pandemic may provide a basis for finding possible strategies to address uneven development across districts.Data and Methods. The analysis uses Gross Regional Domestic Product (GRDP) data from Indonesia’s Central Statistics Agency and COVID-19 data on Java’s six provinces with a total of 119 districts. Resistance and recovery indexes are derived from GRDP data. Methods include the coefficient of variation (CV) and the Zipf equation.Results. The pandemic influenced economic dynamics in Java, revealing a complex relationship between resistance, recovery, and inequality. The impact on spatial inequality varied by region, underscoring the diverse nature of local economic resilience and confirming the spatiallyndifferentiated effects of the pandemic.Conclusions. The pandemic didn’t significantly reduce regional disparities in Java. To address uneven development, governments should design targeted policies that strengthen economic resilience by accounting for the interplay of structural factors, such as infrastructure, resource access, and local governance, to promote a more balanced spatial distribution of economic activity.
Relevance. The global energy agenda is focused on the transition to a carbon-neutral economy and ensuring the energy independence of governments. This has created the prerequisites for the “green” hydrogen energy, which presents the production of the most environmentally friendly energy sources. On the one hand, “green” hydrogen can be used as a storage system for subsequent energy supply to domestic needs. On the other hand, its export can become an effective direction, which will allow state not only to diversify the energy resources sold, but also to use new revenue sources for the budget.Research Objective is to economically substantiate the priority areas of production and consumption of “green” hydrogen in Russian regions.Data and Methods. The cases on the production of “green” hydrogen based on electricity from solar, wind and hydroelectric power plants in 14 Russian regions are considered. Scenarios for domestic consumption, as well as for the export of hydrogen to Asian and European countries through sea and pipeline transportation are proposed. The method to discounted assessment of the levelized cost of “green” hydrogen is proposed. It accounts the full costs of all stages of the project life cycle — from scientific research to equipment disposal. The decision on the project feasibility is based on a comparative assessment with the alternative prices of hydrogen.Results. The calculation of the levelized cost of hydrogen and electricity has shown that the domestic consumption of “green” hydrogen is not economically feasible in the territories with the centralized energy supply. In turn, the export of hydrogen abroad is becoming a promising direction.Conclusions. In the near future, economically feasible projects may be the export of Russian “green” hydrogen to Asian and European countries using both pipeline and sea transportation. However, not all Russian regions are able to ensure the optimal price level for national hydrogen. The proximity of regions to the hydrogen sale markets, as well as the maximum volume of hydrogen production become decisive factors in the formation of an effective levelized cost.
Relevance. Inclusive growth remains a critical priority in dealing with persistent challenges such as inequality and poverty. This study contributes to the debate by offering policy insights to foster inclusive growth, examining how socio-economic and institutional factors shape outcomes at the district level.Research Objective. The study pursues two main objectives: (1) to analyze the spatiotemporal patterns of inclusive growth across districts in Eastern Indonesia, and (2) to identify the key determinants driving these patterns.Data and Method. The analysis draws on district-level data from Eastern Indonesia for 2018–2022, sourced from Statistics Indonesia (BPS), the Ministry of Finance, and the Audit Board of the Republic of Indonesia. It employs Geographically Weighted Panel Regression (GWPR), a spatial econometric technique that captures localized variations in the effects of socio-economic and institutional variables on inclusive growth.Results. The findings reveal marked spatial disparities: central and coastal districts generally outperform more remote inland areas, as growth disruptions during the COVID-19 pandemic were followed by signs of recovery in 2022. The GWPR results show that capital expenditure, democratic governance, labor force participation, and education significantly promote inclusive growth. Conversely, weak financial governance, as reflected in poor audit outcomes, constrains progress in several districts.Conclusions. The study meets its objectives by mapping spatiotemporal variations in inclusive growth and identifying key socio-economic and institutional drivers across Eastern Indonesia’s districts. The findings underscore the need for spatially adaptive, context-specific policies to foster inclusive and sustainable regional development.
Relevance. In the theoretical framework of the System of National Accounts, households are viewed as the ultimate recipients of income generated by the entire economy. However, research on the structure and dynamics of household income at the municipal level remains limited due to the absence of established methods for calculating such indicators.Research Objective. The study aims to develop a methodology for constructing a detailed household income account at the municipal level and to test it by using examples from Russian regions, ensuring alignment with SNA standards. The underlying hypothesis is that it is possible to create such an account using official statistical data.Data and Methods. The study draws on official data from the Federal Tax Service of Russia and Rosstat for the period 2016–2022. Data tables were developed for the municipalities of Sverdlovsk region and the Yamalo-Nenets Autonomous District, enabling automatic calculation of household income sources.Results. The proposed methodology for constructing municipal-level household income accounts closely mirrors Rosstat’s approach to calculating income sources. Verification of data convergence between regional and municipal levels showed only minor deviations (less than 1 %). The study found that Rosstat reallocates household income across territories within regions, leading to differences between municipal incomes and tax service data. Labor income and social transfers were identified as the most significant income sources for municipalities. In Sverdlovsk region, a high proportion of income from entrepreneurial activity is observed not only in Ekaterinburg, but also in many industrially developed municipalities.Conclusion. This study is part of the proposed System of Territorial Accounts and highlights the need for further research on municipal financial balances.
Relevance. This study explores the intersection of economic growth and environmental sustainability in Kazakhstan’s monocities. Traditionally dependent on resource-based sectors, these towns face such persistent issues as economic vulnerability, over-reliance on specific industries, and environmental degradation.Research Objective. The research aims to investigate how the expansion of small and medium-sized enterprises (SMEs) is linked to economic inefficiency arising from environmental pollution in Kazakhstan’s monocities.Data and Methods. The analysis uses data from 26 monocities for the period 2018–2022. The econometric approach explores the relationship between SME growth and environmental costs through indicators such as the ratio of ecological expenditures to gross regional product, the number of SMEs, and the share of SMEs in each monocity relative to the total across all monocities. Estimation techniques include Ordinary Least Squares (OLS), random effects, and Generalized Method of Moments (GMM) regressions.Results. The results consistently reveal a positive correlation between SME growth and ecological expenditures. This indicates that while SME development contributes to economic activity, their proliferation in monocities is associated with a disproportionate rise in environmental costs, resulting in increased economic inefficiency.Conclusions. To enhance economic efficiency without compromising environmental goals, government policy should encourage the development of environmentally responsible SMEs. Recommended measures include tax incentives, financial support, green certification, improved environmental infrastructure, adoption of digital technologies, and implementation of smart city concepts. These strategies are essential for fostering sustainable growth, especially as Kazakhstan seeks to move beyond the “resource curse” and pursue regional development aligned with global environmental priorities.
Relevance. Income inequality, especially in the context of regional development, has become a key focus in academic and policy discussions. For Armenia, which is exposed to continued geopolitical pressures, balanced and sustainable regional development is crucial for national security and economic stability, making it urgent to strengthen its border regions by raising incomes and improving living standards.Research Objective. This study analyzes regional-level macroeconomic data to identify key factors driving income inequality and propose policy recommendations to address these disparities.Data and Methods. The study applies statistical and comparative analysis of regional economic data in Armenia, along with a panel regression model with fixed effects. The analysis considered key drivers of income inequality and regional economic weaknesses, focusing on economic growth, wages, poverty, access to education and healthcare, and financial services in Armenian regions.Results. Most of the factors in question significantly impact income distribution, with the condition of regional education systems being the most important. The decline in educational infrastructure and closure of institutions have clearly contributed to growing income inequality across regions.Conclusion. The main conclusion is that, in order to reduce income disparities between regions, a priority task should be to improve educational infrastructure, as it plays a key role in economic growth and the overall well-being of regional populations.
