Regional economic growth: analysis based on complementary factors

In modern economic conditions characterized by a slowdown in the economic growth, there is a demand for the identification and use of growth potentials. Growth potentials, among other things, lie in increasing the efficiency of using local resources, greater independence of regional power structures in setting goals, priorities and selecting development tools, as well as mitigating growth limitations. In the article, the author gives a definition to the “potentials - limitations” dichotomy, the elimination of which will allow to use the available resources more effectively. A technique for identifying regional growth potentials by determining the complementary components of production factors using econometric analysis based on panel data is proposed. As a result of the analysis, a number of significant and interrelated components of production factors have been identified on Russian data, the use of which within the framework of a sectoral and intersectoral regional economic policy, as well as targeted projects, will make it possible to unleash the region’s economic growth potentials and increase the GRP growth rates.