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Economic Growth and Digitalization: Empirical Analysis of Russian Regions

Student: Darya Stepanova

Supervisor: Ekaterina Aleksandrova

Faculty: St.Petersburg School of Economics and Management

Educational Programme: Economics (Bachelor)

Year of Graduation: 2021

The process of digital transformation entails structural changes. Therefore, this study attempts to determine the impact of digital factors on the main indicator of regional well-being (gross regional product per capita), considering regional and temporal differences in the subjects of the Russian Federation. Digitalization is measured by the cost of enterprises on ICT. Panel data was used to evaluate the effects, namely data was for all subjects of Russian Federation from 2004 to 2019. The main specification of the model is the Cobb-Douglas production function with the inclusion of a digital component and control variables. The research methodology is based on dynamic analysis. The model is evaluated using GMM. The aim of the study is to confirm the hypothesis about the positive impact of ICT costs on GRP, taking into account time lags and indidvidual effects. The hypothesis was accepted. The structure of this paper as follows: some introduction information, literature review, research methods, results. The results of the study can serve as a source for state programs for regional digital development.

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