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Increasing Territorial Economic Growth Through Cost Optimization in the Digital Economy
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Author(s): Leyla Ayvarovna Gamidullaeva (Penza State University, Russia), Irina Potapova (Astrakhan State University, Russia)and Michael Shatokhin (Financial University Under the Government of the Russian Federation – Kursk, Russia)
Copyright: 2019
Pages: 26
Source title:
Optimizing Regional Development Through Transformative Urbanization
Source Author(s)/Editor(s): Umar G. Benna (Benna Associates, Nigeria)
DOI: 10.4018/978-1-5225-5448-6.ch011
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Abstract
Currently, rapid urbanization is taking place in Russia under the influence of globalization processes. Russian economic growth is mostly based on the natural resources and the need to speed up its industrialization process. Today there is a change of economic model associated with the transition from the stage of industrialization to the post-industrial economy. Emphasis shifts from production to the provision of services. In the digital economy, where the major resources required for the production of quality products are time and information, the concept of cost management should be reconsidered. The new paradigm of cost management should take into account the changes in approaches to the management of material, labor, and financial costs, and include approaches, tools, and methods of cost control of resources, updated by digital post-industrial economy. A sectorial and territorial specific of the process of change of economic model requires strategic approach to cost management.
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