Achieving balanced economic development is a key task for old industrial regions, in which
many industrial sectors are concentrated. However, current macroeconomic situation does not promote
the development of industrial sectors and new technological modes; moreover, it can lead to a decline in
production output, tax proceeds, people’s real incomes, consumer demand and other negative trends in
socio-economic development. A considerable gap in labor productivity between Russia and developed
countries as well as between old industrial regions indicates the existence of major problems in Russian
industry. For this reason, the aim of the research is to identify main trends and issues in the industrial76 Том 10, № 4, 2017 Экономические и социальные перемены: факты, тенденции, прогноз
Проблемы развития промышленного сектора экономики старопромышленных регионов России
sector of old industrial areas in order to work out its further development prospects. Methodological
framework of the study includes economic, statistical, and comparative analysis, generalization, and
sociological survey. The works of Russian and foreign economists in the field of regional economics,
official data of the Federal State Statistics Service, databases of international organizations including
the World Bank, the Organization for Economic Cooperation and Development and the U.S. Bureau of
Labor Statistics constitute the information base of the present study. It also uses research findings of I.V.
Makarov, G.B. Korovin, K.V. Pavlov and others. The paper defines problems in the development of old
industrial regions; the major problem is insufficient funding, which does not allow industrial enterprises
to carry out full reconstruction and technological upgrade. The paper points out measures that would
promote economic modernization in Russia’s old industrial regions. Findings of the research can be used
by regional authorities in the elaboration of economic development programs
Keywords
region, labor productivity, economic development, regional economy, investment, industry, old industrial regions