Regional differentiation in the Russian federation: A cluster-based typification



would vary in full accord with what is called socio-political climate characteristic of
their external neighbors.

Another group of factors moght be stipulated by some reasons found outside a
region under consideration, i.e. sweeping changes in government’s highest
echelons, turning the course of economic reforms, aggravation of foreign-policy or
foreign economic situation.

Drawing on the primary indicators, at the second stage there will be extimated the
initial indicators describing socio-economic situation which, as a rule, reflect a set
of standards of living and economic development comparble with other regions.
Besides, the indicators specifying the behavior of socio-economic processes in
regions will be also included, acquiring especial importance since this enables us
to find out the regions of socio-economic homogeneity, thus allowing for even more
correct forecast of the relevant indicators progression.

Secondary initial indicators are as follows:

1. Density of population of a region’s residents. It will be computed as the ratio of
the number of inhabitants to the region’s area.

2. Infrastructure pattern of a territory. To be calculated as the ratio of the lengthof
hard-type roads to the density of population.

3. Share of own incomes in the consolidated budget in its total expenditures. This
indicator that characterizes a region as a whole reflects, first, the degree of its self-
sufficiency with own sources of financing. Second - the level of state support for the
region from the federal budgest. Third - different principles of income sources
formation inasmuch as region’s budget is concerned.

4. Level of development of non-productive sphere. From the available scanty
number of factors describing the situation in and development of non-productive
sphere of a region, we have taken two with regard to public health: the number of
doctors and patient beds. The former is higher for urban territories, the latter
stands for districts less developed in infrastructure. Simultaneous study of these
factors makes it possible to eliminate the impact of structural differences in
averages following the «town-village» criterion.

10



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