The Economic Potential of the Region: Methodical and Practical Aspects of Evaluation

Abstract

The article deals with the methodical and practical aspects of the evaluation of the Russian Federation Regions' economic potential. The writer uses multidimensional evaluation of the economic potential on the basis of regional labor resources and fixed capital endowments, and also considers financial sustainability and availability of investments. The method is based on the author's interpretation of the term "economic potential" and includes the classification of the regions into six groups. Special attention is given to the credibility of the raw data and to the comparison of the economic potential on the basis of multidimensional average. The authorial methodology of the economic potential evaluation of the Russian Federation Regions is based on four methodological principles and on practical focus. The article introduces results of practical calculations done with the use of the authorial methodology. Keywords-RF region, evaluation and classification of the regions, region's economic potential, regional labor resources endowments, regional fixed capital endowments, financial sustainability of the region, availability of investments in the region.