Analysis of rural areas development of the region using the adl-model

Abstract

The paper presents an approach for the analysis of rural areas' socio-economic development.Rural regions include spheres of human activity: institutional, environmental, social, labor, industrial, economic, technological development spheres.Under the development of the rural regions, changes in the variables of different spheres of human activity in the region, increasing the potential for human development, is understood.Human Development Index measures the potential for human development measurement.The model of socio-economic development of the rural regions presented in the article is characterized by both endogenous and exogenous variables of the model.Model of socioeconomic development of the rural regions is presented in the form of six econometric equations, each of which is an ADL-model.Each ADL-model contains endogenous and exogenous variables.The article presents the structural form of a system of economical equations in each one equation there is more than one endogenous variable.It shows the transition from the structural form to the form of the system of economical equations, where each equation has only one endogenous variable.The system of equations was developed for the rural regions of Russia.Baseline data were obtained from the database of the State Statistics Committee of Russia.The article provides a solution to the system of equations.The solutions to the model can be used for developing strategic development of each separate rural region or a combination of all the rural regions.

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