Regional cultural diversity in Russia does it matter for regional economic performance

Document Type:Research Paper

Subject Area:Business

Document 1

The main reason for increasing the population of this area that was initially occupied by ethnic minorities was to provide a stable workforce in the plants that were being built as well as increased labor for exploitation of the rich mineral resources that existed in the regions. Some conclusions can be drawn from analyzing the effects of cultural diversity on the level of productivity within the Russian regions. It was found out that the regions with high population densities were negatively affected by the migration, more so on the externality of the production. On the contrary, heterogeneity of the population within the regions of low active population proved to be advantageous to the consumption externality. Regional cultural diversity in Russia: does it matter for regional economic performance? Introduction Cultural and ethnic diversity is among the defined variables that describe countries which have been regarded as large and heterogeneous and Russia is the suitable example of such states.

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According to Mktrchian&Karachurina (2014), there are certain factors like the outlined above that facilitates the inter-regional migration. Movements due to educational purpose, businesses are of positivity to the economy as the population is empowered unlike the inflow of dependents immigrants. Territorial, cultural diversity within the context of Russia is mainly explained in ethnological and cultural studies at large. Streletskiy (2008) has defined cultural diversity as the heterogeneity of a group of people’s beliefs, values, social norms and common preferences. It can be measured by representing the heterogeneity of the population. The act outlines on how the cultural diversity influenced the decisions that determined the economic and political development of a country. There is also a model as defined by Ottaviano and Peri which bases on the relationship between the attributes of wages, rents, and life quality.

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According to Ottaviano&Peri (2006) in their open system model of cities, it is attributed that the cultural diversity a country always increases the native’s population long-run equilibrium wages as well as the housing rental prices. By assuming the proposed exogenous distribution of any occupational land along with the endogenous distribution of the labor within the stipulated cities, it was defined by the author that the utility function of the working population and the production function of the existing firm in the city influences the economic development and growth simultaneously. As a matter of understanding the heterogeneity of the Russian region population as stipulated by Rosstat (2002), cultural diversity in current modernized Russia highly depends on the attributes of the ethnic and cultural space.

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3% population respectively that was equivalent to the national average. Discussion The Far North and East regions of Russia differed regarding population density with the part of the country within Europe. The latter has much-improved population density with a heterogeneous ethnicity. This can be attributed to the colonization processes within the country’s history and the establishment of the Empire. However, the high incidents of ethnic diversity can be experienced in southern parts of Russia. References Alesina, A. , Baqir, R. , & Easterly, W. Public goods and ethnic. Divisions The Quarterly Journal of Economics, 114(4), 1243–1284. NBER Working Paper, No. National Bureau of Economic Research. Andrienko, Y. , &Guriev, S. Determinants of interregional mobility in Russia. The economic value of cultural diversity: Evidence from US Cities. Journal of Economic Geography, 6, 9–44.

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