The Role of State Financial Regulation in Solving Key Problems of Russian Regions on the Example of the Far Eastern Federal District

Abstract

The relevance of this research is defined by the importance of the Far Eastern Federal District in the context of reorientation of Russia’s logistics and infrastructure from West to East. The aim of the paper is to test the hypothesis about the positive impact of the used measures of state financial regulation on the development of the Far Eastern Federal District in order to solve its key problems. The authors faced the task to analyze and develop essential measures of state financial regulation at the regional level. The scientific novelty of the study lies in the development of those measures taking into account the changing importance of the region in Russia’s trade turnover. The practical relevance consists in the possibility of using the results in the development of public financial policy in the region. In addition, the article considers key problems of the region, the solution of which will have a positive impact on the country’s economic growth and can be achieved through the government financial measures suggested by the authors. Such measures include increasing the capacity of the Far East sea ports, which means the simultaneous development of the Russian logistical infrastructure, primarily railway infrastructure, to organize uninterrupted delivery of goods to the ports of the region; changing the structure of the trade turnover with a shift towards the export of high-tech products; solving the demographic problems and increasing the scientific and technological potential of the Russian Far East. The results of this study can be used to analyze other Russian regions in order to increase the economic potential of the country as a whole.

Keywords

• import substitution
• state regulation
• regional economics
• tax incentives
• preferential lending
• subsidies
• investments