Mining industry in a border region of Russia: assessment of the potential industrial development in the Republic of Tyva

Abstract

In connection with the re-orientation of Russia's economic policy towards the East, an assessment of the potential for industrial development in such mining frontier territories of the country as the Tyva Republic becomes a major priority. For this purpose, the available academic literature as well as the results of scientific research have been analyzed. This study is also based on the data from official statistical sources, information obtained from the industrial companies in the region and the Internet resources. The analysis and synthesis methods used allowed to identify the main reasons for this lag, including the shortcomings of the current regulatory legislation. The gross regional product in the Republic of Tuva is only 243.05 thousand rubles per capita (vs. 645.9 thousand rubles in Russia and 535.3 thousand rubles in the Siberian Federal District). The paper proposes a hypothesis that a selective approach is required in regulating the economy of the country's depressed border territories with account of the characteristics, resources and potential of each of them. Empirical studies of the possibilities for industrial development of the one of the most depressed mining regions of Russia, i.e. the Tyva Republic, have been performed for the first time in the cross-border aspect with account of developing the available rich natural and mineral resources. An assessment of its potential, which is capable of achieving the industrial production volume of 350 billion rubles by 2035, has been made using linear regression methods. Measures have been proposed on creation of the legislative and legal regimes needed to attract investments in the development of the mining industry of Tuva, which can become a driving force of its dynamic social and economic development.