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Regional Differences in the Development of Economy and Entrepreneurship in the NCFD

Student: Kipriyanova Anastasia

Supervisor: Dmitry A. Pokrovsky

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Economics (Bachelor)

Year of Graduation: 2019

This study focuses on the issue of regional imbalances in the North Caucasus Federal District in the development of the economy and small business. The relevance of the problem is due to the priority of the business sector for the modern economy of Russia and at the same time the presence of significant differentiation within the regions of the Russian Federation, in particular in the NCFD as the most lagging one. The aim of the work is to identify similarities and differences in the regions of the NCFD on the main socio-economic indicators and business progress for 2009-2016. In order to accomplish this goal, a comparative, factor and cluster analyses were performed. After comparing the results of clustering by two methods – k-means and hierarchical algorithm, the last one was chosen. The analysis of the clusters’ dynamics, as well as a comparison of annual intra-cluster indicators of economic development and small business were carried out. According to the results of the analysis, the conclusions about the relative stability of the distribution in the clusters in the considered period were made. The changes in the detected regions-outsiders (the Republic of Ingushetia, the Chechen Republic) and the region leading (Stavropol Krai) were traced. The most similar periods in accordance with clustering analysis (2009-2012, 2013-2014 and 2015-2016) were identified.

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