Financial aspects of transport infrastructure development in regions

The level of economic development depends on many factors, among which infrastructure, including railway transport, is the key one. Financing of infrastructure-related projects on the regional level encourages economic growth. However, different level of overall development of subject of the Russian Federation causes inequality in the level of transport infrastructure development and makes common approach to its financing inapplicable. The necessity appears to build a model of financing for transport-related infrastructure with the use of statistical data and mathematical approach with the account of regional market peculiarities. Due to selection of indicators affecting economic growth and building parametric factor model, classification of financing on subfederal level was carried out, which makes it applicable for states with federal structure.


Introduction
Current state of world economy reveals rather serious disproportions in economic development of certain regions.Usually, the main part of financial resources is concentrated in financial centers where the key infrastructure-related investment projects are implemented.Divergent development of big territorial entities occurs [1], which causes subsequent flow of labor, material, intellectual and other resources from the periphery to the center.It results in slowdown of growth rate in both leading global economies and developing countries.
The problems of economic growth in developing countries are vastly studied.The works of A. Elekes and P. Halmai [2] revealed that the model of economic growth and convergence effective up to 2008, is inapplicable for current conditions in these countries.Study of the Bank for International Settlements demonstrated why too rapid growth of financial sector has negative effect on the overall economy [3].Particularly, the resource supply of economic growth leads to the deficit of public finances.According to D. Mauldin and D. Tepper [4], if one fails to get control of the USA budget deficit, it will reach 200% of the GDP by 2025, which will bring the leading global financial system in an unstable position.The main factor of financial capital allocation in such conditions is not the reliability of capital maintenance, but the proximity to functioning markets [5].According

Research methods
When studying subfederal level, a reasonable suggestion shall be made, that regions have different levels of development, which makes common approach to financing of economic development inapplicable.Consequently, it is important to classify regions on the basis of factors affecting economic growth and development from the viewpoint of financing.
A parametric model is used to build a factor model of financing, it enables to interpret the results obtained in research and practical activities.Per capita gross regional product (internal factor -у) was taken as a target parameter, which depends on external variablesх 1 , х 2 , …, х m , given in Table 1.In order to provide comparability of the economic growth parameter on the subfederal level it was recalculated as per capita gross regional product for a certain region and chosen time period (Table 1).The given calculations showed that in various regions economic growth is affected by different factors, which became the basis for classification [17].Official data on subjects of the Russian Federation and federal districts for the period 2000-2014 were taken as a statistical basis for calculations.Software products were used when solving computational problems, and the best model was selected based on multicriteria approach (Table 2), which allowed defining factors financing of which affect economic growth.Additionally, factors having negative effect on economic growth were https://doi.org/10.1051/matecconf/201821602002Polytransport Systems-2018 defined.The obtained results became the basis for shaping state finance policy in the conditions of limited financial resources of the Russian society.Table 2. Federal districts of the Russian Federation factor model of financing economic growth in 2000-2014 [17].

Federal district Model
Central y = -1.05e

Experimental data and results
Classification of economic growth financing was performed with regard to subjects of the Russian Federation, it includes: quasi-corporation regions -44; quasi-state regions -23; society-regions -13; non-defined -2 [17], which enables to make the following conclusions:  subjects of the Russian Federation significantly differ in their level of development;  comparability of factors affecting economic growth and development are nonexistent, even with regard to federal districts;  the selected factors have both positive and negative effect on economic growth (Table 3), which proves inability to apply a common approach to financing;  the existing division into federal districts is carried out formally and is based on geographical characteristics, which hampers growth of financing efficiency.
Financing of economic growth shall be performed on the basis of the suggested classification of financing of subjects of the Russian Federation.When financing on the subfederal level, the following peculiarities found while model testing shall be accounted (Table 4):  increase in financing of small and medium-sized enterprises is only reasonable for the purpose of social development, since organizational demography factor has no effect on economic growth in any of the regions; The projects are financed from various sources: own resources (income and depreciation reserve), government support (also by increasing the capital of Russian Railways JSC), loaned funds (credits, bonded loans).The major part is represented by https://doi.org/10.1051/matecconf/201821602002Polytransport Systems-2018 loaned funds (more than 90%) including credits, bonded loans and leasing.However, these resources are obviously insufficient.It shall be noted that in 2018 capital investments in Eastern operating domain alone exceed 1.5 billion rubles [20].Search of new financial instruments is a relevant task.Infrastructure mortgage may become one of public-private partnership tools.The essence of this option consists in the possibility to use part of future tax revenues from project implementation for covering mortgage payments.Capital investments of a company may be made with the government support in the form of guarantees and further payment for this infrastructure while using it.When such system is applied, a bank shall offer affordable credits to the construction companies who shall build infrastructure facilities at the lowest possible cost.Then, the government starts paying the companies for them to repay the credit using the finances of the infrastructure beneficiary, with the minimum increase in taxes and payments.In fact, such infrastructure facilities are purchased on loaned funds from private investors and the users of the facility gradually repay this loan.

Conclusion
As the result of the study the recommendations were elaborated for financing development on subfederal level.It was proved that the use of common financing model on the subfederal level is impossible.Therefore, relevant models shall be chosen depending on classification of the region financing and the funding streams with confirmation of efficiency using the described factor model; this also applies to financing of railway infrastructure projects.Due to the classification of economic growth financing, conceptual approaches to reasonable financing were formulated which shall be accounted in transport infrastructure development.
The existing division of the economy into public and private (based on recommendation of Anglo-Saxon economists) is obsolete and doesn't meet economic development interests.The sector of public interests shall be defined and include systemically important financial institutions (like Russian Railways JSC), the activity of which impact the overall country development.
To reach the development goals new financial tools should be used, including infrastructure mortgage which is a public-private partnership instrument.This will provide MATEC Web of Conferences 216, 02002 (2018) https://doi.org/10.1051/matecconf/201821602002Polytransport Systems-2018 additional tax revenues and development of finance and credit sector, as well as economic growth on the regional level.Some additional research are required before practical use of the obtained results of the study, which will concern reciprocal effect of transport infrastructure and finance and credit system on the regional level.However, the outcomes of the study define the direction for further reserach.

Table 1 . Classification of financing in regions with regard to the effect on economic growth. Region type Factor affecting economic growth
4capital/labor ratio in all organizations х 5organizational demography х 6railway transportation of cargo Quasi-state region х 1per capita expenses of consolidated regional budget х 2per capita expenses of state non-budgetary funds х 10per capita share of public employees Society region х 7annual per capita income х 8annual level of occupation х 9level of citizens' economic activity

Table 7 .
Capital investment of Russian Railways JSC in development of Eastern operation domain (million rubles, excl.VAT).