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INFLUENCE OF RAILROAD INDUSTRY ON SOCIAL AND ECONOMIC DEVELOPMENT OF RUSSIA

Natalia Kirsanova

Abstract

The article provides an analysis of influence of the railroad industry on social and economic development of Russia from launching the railway communication to the present day. Rail transport in Russia is an economy branch that guarantees continuous work of all economy sectors. From the very beginning, the railroad projected influence on social and economic development of the country, territory development and planning, and national security. At present, the railroad continues playing a decisive role. Together with the direct influence (provision of jobs, JSC Russian Railways? tax payments to the budget, transit charges etc.), the industry is characterized by the highest multiplicative effect compared with other branches of industry. The high value of the multiplier is connected with a number of reasons. It has bee shown that the railroad industry uses an effect system as a result of transportation redistribution among all means of transport and improving the efficient load on the transport network. The railroad industry development is closely connected with allied industries: Russia?s transit potential increases, agglomeration effects are observed, and territory interconnection improves. All these factors contribute to unemployment reduction, income increase, investment climate improvement, as well as to a rise of standards of living. The importance of the railroad industry is enhanced by the vast territory of the country, which is connected with transportation duration, changing time and climate zones. As a result, the railway communication has advantages over other means on transport. The article dwells upon effects from railway development, both direct and external; summarizes the estimated reduction of the projected GDP and the country?s budget as a result of underdevelopment of the railroad transport compared with the economy needs in 2012-2020; defines technical and economic advantages of the rail transport compared with other means of transport; suggests promising ways to improve the railroad industry efficiency. Results of the research prove that the railroad industry development is a key factor for development of today?s Russia.

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DOI resolver: doi.org/10.5593/sgem2019/5.3/s21.053

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