A Remote Sensing Look at the Economy of a Russian Region (Rostov) Adjacent to the Ukrainian Crisis

Posted: 15 Apr 2019 Last revised: 2 May 2019

See all articles by Gregory J. Brock

Gregory J. Brock

Georgia Southern University - Department of Economics

Date Written: March 11, 2019

Abstract

Satellite data used in combination with a stochastic production function method reveal an inefficient formal economy in rural Rostov Oblast 2013-2015 embedded in an overall (formal and informal) relatively efficient economy with the measurement of both important to better understand non-economic impacts of sanctions. Increased military activity may have insulated the formal economy of the border area from poor economic performance and the deindustrialization that characterizes adjacent areas. The current Oblast Administration’s grant program to localities does not reward relatively efficient economic performance with a model suggested here to change the policy. The region’s economy has the ability to absorb many Ukrainian refugees though non-economic issues support the current assistance from other Russian regions in helping relocate refugees beyond Rostov region. Like other conflict zones, urban areas experience less of an impact relative to rural areas.

Keywords: Ukrainian Crisis, Rostov, Remote Sensing

JEL Classification: R12, P25, F51

Suggested Citation

Brock, Gregory, A Remote Sensing Look at the Economy of a Russian Region (Rostov) Adjacent to the Ukrainian Crisis (March 11, 2019). Journal of Policy Modeling, 2019, 41(2), pp. 416-431; DOI: 10.1016/j.jpolmod.2019.02.013, Available at SSRN: https://ssrn.com/abstract=3350436

Gregory Brock (Contact Author)

Georgia Southern University - Department of Economics ( email )

P.O. Box 8153
Statesboro, GA 30460-8153
United States
912-478-5579 (Phone)

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