Factors of Export Diversification: Empirical Analysis of Russian Industrial Regions

Oil and gas dependence the volatility of their prices is currently a serious challenge for Russian economy. Coincidently, export revenues from oil products are main source federal budget. Export diversification can contribute to risk reduction economy by increasing share other industries in structure. In this regard, present study examines determinants industrial regions using econometric modelling methods. To end, Herfindahl Theil indices 97 groups were calculated. It hypothesised that development small medium-sized enterprises, as well sanctions imposed Western states against Russia factors regions. Simultaneously, natural resource extraction assumed significantly increase concentration exports test hypothesis, panel data 50 period 2001-2019 analysed. The quantile regression approach was applied solve heteroscedasticity problem. Three distinguished according level diversification: with high (Q10-Q30), an average (Q40-Q60), low (Q70-Q90). research findings show enterprises contributes While did not have significant impact on diversification, regional potential exports. obtained results complement existing literature Russia, policy implications.