Sharing economy impact on ownership transformation and regional performance

Abstract

The phenomenon of sharing economy as a model of productivity growth and transaction costs' decline considers distributed use of underutilized assets containing excess capacity which is available for other economic agents and demanded by them. Several researchers and mass media foster fears that sharing propagation will facilitate inequality growth and unfair property distribution thus causing property transformations in different territories. Those transformations will obviously follow different patterns and result into a specific structure of a region's economy resulting from structural shifts between the private and public sectors. Suh an ownership transformation will presumably have specific impact on regional performance, measured traditionally by gross regional product. Yet, GRP is not flexible enough to catch low-scale shifts of regional property complex employment practices as sharing. That is why an alternative approach to regional performance assessment is suggested and implemented. The private sector's capital expenditure in fixed assets is proved to be subject to change under the novel phenomena like sharing economy which is potentially changing patterns of capital consumption. This would lead to gross regional product changes in short-term and long-term perspective.