Formation and use of resources in the region: the balance sheet approach

The aim of the study is to analyze the balance of resources and the use of products in the economy of the Vologda Oblast and to identify major structural changes in 2000-2014. We analyzed the amount, structure and dynamics of resources, the change of regional production, export and import in the total volume of resources and their use. It is established that in 2000-2014, the structure of the formation and use of resources in the region changed: the share of output of resources increased, the proportion of production, the proportion of imports of goods and services decreased; in the use of resources, the share of intermediate consumption and final consumption expenditure significantly increased. We also revealed a significant transformation in the structure of production: the share of production of goods decreased by 11.7 p.p. (including industry - by 10.5 p.p.) simultaneously, the share of production of market and non-market services increased by 7.7 and 4.1%, respectively. It is proved that this had an impact on the structure of intermediate consumption and, as a consequence, on the redistribution of gross value added by economic sectors. It is shown that in such conditions the region has seen the growth of resource intensity of production and the decrease in overall economic efficiency of functioning of the economy. The cost of production during 2000-2014 has risen from 50 to 56%, cost efficiency in the whole economy decreased by 21.4%, and the decline was 42.2% in the production of goods. It is established that a key factor in reducing the intensity of production and increasing its cost efficiency is the renewal of fixed capital. We analyzed the main indicators of the investment process in the region. The main reasons for the lack of funds for accumulation include excessive withdrawal of funds from the regional reproduction process associated with the flight of capital, and the increase in final consumption that suffers from a lack of growth in domestic industrial production. It is shown that one of the key sources of investment in developed countries - depreciation payments - are not actively used in the economy of the Vologda Oblast (only about 20% of the total investment). It is concluded that the analysis of resources and use of products can be used in the practice of regional management.