Impact of Online Retail on Economic Development in Russian Regions

The aim of this study is to determine the influence degree of the online retail on the economic development of the Russian regions in comparison with the effect of offline retail. Design/methodology/approach:Data on 85 Russian regions from Unified Interdepartmental Information and Statistical System (EMISS) of Russian Federation were taken as a basis for the research. The sample includes data on online retail turnover, offline retail turnover, gross regional product (GRP), gross regional product per capita (GRP per capita) for the 2014-2015 years. Panel regressions with fixed effects were employed and econometric models with dependent variables such as GRP, GRP per capita were estimated to fulfil research aim. Findings: The regression analysis showed the positive impact of both online and offline retail development on GRP and GRP per capita in the Russian Federation. Online sales have a stronger impact on regional development of the Russian Federation than offline sales. Research/practical implications: The policy makers can use the research results in the process of e-commerce policy targets setting in terms of increasing volumes of online (cross-border) trade. Originality/value:The study empirically proved the positive impact of online retail on Russian regions development and showed stronger impact of online sales on regional development of the Russian Federation than impact of offline sales.