Analysis of Factors Affecting Readiness of Subjects of Russian Federation for Digital Economics

The diploma thesis presents the results of an empirical study of the role of subnational factors such as human capital, the economic environment, costs of acquisition, development and implementation of ICT, innovation operation and activity in the development of digital economy infrastructure in all regions of Russia. This study aims to identify and assess the factors affecting the diffusion and use of information and communication technologies in the three largest sectors of the Russian economy (households, business, public sector). The sample was built in the regional context: 82 subjects of the Russian Federation for three years (from 2015 to 2017 inclusive). During the analysis, six models were created to estimate the impact of factors on the readiness of regions for the digital economy. The results confirmed the findings of previous studies in the part of the positive impact of human capital and the economic environment on the development of ICT. Economic environment indicators are significant in all six models. Human capital has a positive impact on the diffusion of information technology in business and the public sector, as well as on the use of ICT in the business sector and households. New factors, such as the ICT costs, innovation operation and the presence of technoparks in the region, have proved significant only for the ICT use in business. This research being scientifically grounded and based on official statistics contributes to the emerging literature devoted to the study and identification of factors that can affect the level of informatization of regions. Using Russian regions as a subject of empirical analysis allows identifying subnational factors of the development of digital infrastructure in the regions of Russia. In turn, an understanding of the regional determinants of informatization helps to shed light at more complex parameters affecting the formation of the digital economy as a whole. From a practical point of view, the obtained evaluation models and the results can be used in the development of government programs to eliminate the existing digital divide between the Russian regions and increase the level of information in them.