Industrial markets of the Ural region: Economic growth under 'new normal'

Regional markets demonstrate a significant slowdown in economic growth and the Ural region is not an exception. The article examines the specificity of the Ural industrial markets. The methodological basis of the research is neoclassical economic theory looking at the dependence of output on the production factors applied in the context of the production function. The authors perform a quantitative research using the econometric tools and construct several regression models. We use the sales growth rate of the regional industrial market as a resulting indicator. Regressors (factors) are growth rates of salary; investments into fixed capital; own and raised funds allocated for investments into fixed capital; short-term and long-term financial investments. The authors describe the trends in the Ural industries. The results show that there is a correlation between growth rates of the industrial markets and growth rates of salary and own funds allocated for investments into fixed capital. The paper concludes about the necessity for the region to move to a new technological level. At the same time, it is also important to develop traditional industries. The region’s potential is high and, therefore, the synergy in the triad “industry–education–science” can stimulate its growth. In addition, at the moment there is an urgent need for cultivating conditions, especially institutional ones, to form a solid layer of medium-sized business in the Ural region.