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The Influence of Large Corporations on Regional Development

Student: Popova Polina

Supervisor: Tatiana V. Bukina

Faculty: Faculty of Economics, Management, and Business Informatics

Educational Programme: Economics (Bachelor)

Year of Graduation: 2019

The development of regions is influenced by many factors, among which the activities of large corporations are significant. Large corporations form significant tax revenues, have a positive effect on the investment climate, serve as an additional incentive for the influx of the population. Accordingly, the presence of large corporations in the region is an indicator of the progressive development of the region. To confirm this hypothesis, the impact of large corporations on regional development was assessed using regression analysis tools. In particular, the impact on the region's GRP, as the main indicator characterizing regional development, the presence of large corporations, as well as other regressors, was considered based on data obtained from RosStat, ExpertRA, ForbsGlobe, SPARK. As a result, an OLS model was built with the inclusion of a Dummy variable for the presence of large corporations in the region. The presence of corporations in the region turned out to be significant at the 99% level. Thus, it was found that the presence of large corporations has a significant impact on the level of regional development.

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