The Impact of Spatial Effects on Regional Development

This paper is devoted to the study of the impact of spatial effects on regional development. For the study, data were used for 74 constituent entities of the Russian Federation within the time from 2005 to 2018. The literature review includes a description of the spatial econometrics’ toolkit, as well as a review of previous work in this area. Within the framework of this study, the choice of variables for constructing econometric models was carried out, and the types of weighting matrices were determined. To obtain an answer to the research question posed in the work, we used the methods of econometric analysis. The existence of spatial effects for the subjects of the Russian Federation was proved by the results obtained by calculating the Moran's index and constructing models of spatial autoregression. The STATA static package was used for calculations. There were used three types of weighting matrices to construct models of spatial autoregression: boundary matrix, matrix of inverse distances, and time matrix. The main result of this work is evidence that spatial effects do indeed affect regional development.