ASSESSING REGIONAL ECONOMIC SPECIALIZATION USING THE TOPSIS METHOD
P.A. Ivanov
Ufa Branch of the Russian Academy of Sciences, Institute of Social and Economic Research, Ufa, Russia
Keywords: public finance, economic specialization, budget, region, performance, investment, strategic planning, TOPSIS
Abstract
This article presents an assessment of the regional economic specialization, using the Republic of Bashkortostan and its manufacturing industry as a case study, analyzed in relation to public finance performance in this constituent entity of the Russian Federation. The TOPSIS method was employed as a tool to identify the most promising economic activities for financial support, aiming to enhance the performance of public finance utilization in the region. The study has found that in 2021-2022, amid the impacts of COVID-19 and sanctions on the regional economy, the significance of the public finance indicator (revenue collected per employee in the region) increased in the evaluation of economic specialization. What is more, despite a shift in the preferred area of support from the woodworking industry (2019-2020) to pharmaceutical production (2021-2022), the core of the region’s economic specialization remained virtually unchanged. Priority industries for continued financial support include chemical production, vehicle manufacturing, paper production, electrical equipment manufacturing, and non-metallic mineral products. Supporting these sectors is expected to maximize the performance of public finance use in the Republic of Bashkortostan’s manufacturing industry.
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