Tax Revenues Growth of Local Budgets by Means of Trade Clustering: Regional Specificity

The purpose of the article is a quantitative analysis of the impact of clustering of trade activities in a region (using the Sverdlovsk region as an example) on the financial independence of the budgets of municipalities located on its territory. The methodological basis of the study is formed by index methods of localization assessment (Ellison – Glaser index) and tools of spatial (panel) data analysis (Moran’s global index). The research approach allowed us to determine the consequences of trade cluster creation in the Sverdlovsk region not only at the meso-level but also at the macro-level and to increase the reliability of the assessment of these consequences at the meso-level. Clustering trade activities in the region fosters growth in both retail and wholesale trade turnover in Russia, as well as increases tax revenues for the municipalities involved. This article examines the presence and impact of trade localization on turnover indicators for this economic sector. It evaluates how the localization of trade activities within the constituent entities of the Russian Federation affects the volume of tax revenues for local budgets. Additionally, the article offers recommendations for the authorities of the Sverdlovsk region to stimulate trade clustering processes within its territory, thereby enhancing the financial independence of local budgets. The implementation of the proposed measures for trade clustering in the Sverdlovsk region will lead to an increasing number of retail outlets in this region, which will lead, firstly, to the emergence of new jobs in the area and, secondly, to an improved demand from the relevant companies for land plots. All this will immanently entail an increase in tax revenues of the budgets of municipalities included in the region. Authors’ contribution. S.G. Pyankova – literature review and analysis of studies on the issue of increasing tax revenues of local budgets through trade clustering, characteristics of the structure of the revenue side of the budget of the city of Yekaterinburg, synthesis of general scientific and special methods for studying the strengthening of localization, including clustering of individual types of economic activity in the territory of the constituent entity of the Russian Federation. M.A. Kombarov – a methodological toolkit for the influence of the level of trade localization on turnover indicators for this type of economic activity is proposed, an assessment is given of the impact of localization of trade activities in a constituent entity of the Russian Federation on the volume of tax revenues of local budgets, and recommendations are developed for the authorities of the Sverdlovsk region on stimulating trade clustering processes in its territory to increase the financial autonomy of local budgets.