Regional Economic Systems: Ensuring Adaptability in Conditions of Uncertainty

Abstract

The planning of the strategic regions' development is hampered by numerous uncertainty factors, which creates problems for public administration bodies. This research aims to develop a method for assessing the abilities of the region's economic system to adapt to uncertain conditions as a methodological basis for implementing public administration measures. The authors conducted a study of the dynamics of the development of the federal districts of Russia in 2019–2021. The conducted study revealed the heterogeneity of the reaction of regional economic systems to the impact of uncertainty factors, although the overall dynamics of the country's development were positive. The research methodology includes the determination of relative changes in the main indicators of socioeconomic development of regions and their contribution to the country-wide dynamics from the beginning of the occurrence of uncertainty factors to the recovery stage; their adjustment, considering the rigidity indicators; ranking of regions by the level of adaptability of the economic system; development of a differentiated set of measures to improve the adaptability of each type of economic systems. The authors determined that a high level of rigidity causes a low adaptability of the economic system to changes. The authors tested the methodology for assessing the adaptability of the economic system on the example of the federal districts of Russia. The authors distinguish three types of regional economic systems, depending on their adaptability, and apply a differentiated approach to substantiating regional policy measures.

Citation

Isaeva, E.A., Shleenko, A.V., Chudaeva, A.A., Shvetsova, I.N. and Pokamestov, I.E. (2024), "Regional Economic Systems: Ensuring Adaptability in Conditions of Uncertainty", Eshov, M.P., Abdurakhmanova, G.K., Burkhanov, A.U., Abdusalomova, N.B. and Ergasheva, S.T. (Ed.) Development of International Entrepreneurship Based on Corporate Accounting and Reporting According to IFRS (Advanced Series in Management, Vol. 33B), Emerald Publishing Limited, Leeds, pp. 181-189. https://doi.org/10.1108/S1877-63612024000033B023