Rational branch and territorial structure of economy - the prerequisite of efficient development of regions

In article questions of rational branch structure on the example of the South of Russia are considered. Special attention is paid to mechanical engineering as the largest industry where the noticeable influence of scientific and technical progress is looked through. Three factors defining placement of productive forces are defined and territorial bases of economic efficiency of regions are proved. In the conclusion, the author comes to a conclusion that development and increase in effectiveness of foreign economic activity in regions of the South of Russia can and has to become an important factor of improvement of their economies.