ECONOMIC DEVELOPMENT IN ALGERIA AND RUSSIA'S AVERAGE REGION: COMPARATIVE ANALYSIS OF DYNAMICS AND PRODUCTION FUNCTIONS

The study of regional economies is relevant because it provides information that helps improve regional competitiveness and supports strategic decision-making. This study compares the socio-economic development of two regions: Algeria (Africa region) and the Udmurt Republic (a typical region of the Russian Federation). The comparative analysis is based on the main indicators of socio-development over a 24-year period. The study uses official statistical data from Algeria and the Udmurt Republic for the period 2000–2023 on indicators such as gross domestic product (regional), population density, the number of labor resources, and the amount of productive capital, as well as some specific characteristics. We modeled the production functions of the regions to assess the relationship between the main socio-economic indicators and analyze the elasticity of factors. The Cobb-Douglas function was used in the study, which showed that, despite the low level of technical development in both regions, the Udmurt Republic uses productive capital more efficiently than Algeria. At the same time, the return on labor resources is higher in Algeria.