The impact of integration on social and economic inequality of region

Abstract

Integration is always effect positive on the economy of the country: due to increase of competition between firms, growth of production’s volume, more effective territorial distribution of economic activity, reducing the cost of resources and the cost of goods to the value of the border’s costs. Domestically, the more successful regions receive more benefits from the integration that enhances the existing socio-economic inequality among the regions. The aim of the study is to identify and evaluate the effect of integra-tion factors on regional inequality, building an econometric model of such a relationship and test a model in the Russian regions. The research is supported by the grant of the President of Russian Federation, project No. 1107.2014.6