IMPROVING ECONOMIC RESILIENCE IN THE FAR NORTH REGIONS OF RUSSIA: THE ROLE OF STRUCTURAL CHANGES

Abstract

Examining the relationship between structural transformations in the economy and sustainable development holds significant importance for the Far North regions, given their role in safeguarding Russia’s energy security. This article aims to investigate the repercussions of structural transformations within the Far North regions’ economy on their economic resilience. The underlying premise is that steering the course of structural changes in a regional economy can wield influence over the sustainability of its development. The research methodology is grounded in the fundamental principles of the theory of structural dynamics. Analytical tools, including descriptive statistics and correlation analysis, were employed to conduct the investigation. The findings revealed that the Gross Regional Product (GRP) and employment indicators were the most susceptible to structural changes in the economy of northern regions, serving as primary benchmarks for economic resilience. Notably, the construction sector, along with the service and trade sectors—traditionally reliable sources of employment during crises—played an important role in fortifying economic resilience. However, the study also identified an insignificant relationship between the growth rates of the main economic sectors and indicators of innovation activity. This led to the conclusion that the development of northern economies predominantly follows an inertial trajectory, with resilience manifesting itself in addressing challenges of survival rather than embracing modernization. The novelty of the research lies in the revelation that adaptive changes in the sectoral structure of the economy do not consistently enhance the sustainability of its development; instead, they are predominantly associated with addressing immediate issues related to socio-economic stability. Beyond structural factors, the way along either an inertial or innovative path of adaptive development is shaped by other influential factors. Identifying these factors is a promising avenue for future research.

Keywords

• regions of the far north
• economic resilience
• sectoral structure
• structural transformations
• sustainable development