Sales markets for the goods of the regions of the northwest of Russia: quantitative assessment

Автор: Sidorov Maksim A.

Журнал: Economic and Social Changes: Facts, Trends, Forecast @volnc-esc-en

Рубрика: Regional economy

Статья в выпуске: 3 т.15, 2022 года.

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Promoting the spatial factor in the development of the national economy requires the implementation of state policy on the transformation of interregional value chains. This task is specific due to the vast spaces and the high degree of polarization of the country’s economic sphere. The purpose of the study is to conduct a quantitative assessment of the sales markets of regions within the Northwest of Russia, taking into account the industry and territorial specifics of their production. The analysis reveals that, in general, in the Northwest of Russia, national and foreign markets prevail over local and macroregional, and interterritorial interaction remains largely fragmented. However, the presence of specialization industries in the regions, combined with relatively stable external demand, can contribute to the development of interregional value chains. It is noted that in Russia, the tasks of optimal zoning and development of value chains are of crucial importance, and it is reflected in the program documents. It is shown that the macroregion uses the potential of internal cooperation only to a small extent, being to a greater extent an array of multidirectionally oriented market zones with Saint Petersburg as its core and a number of value chains, often export-oriented. It is concluded that the nature of supplies to foreign markets is determined not only by the export specialization of the territory, but also by the diversification of the economic system. The findings of our research can be used to develop strategic documents for spatial development, programs for the development of economic sectors and industrial clusters. In the future, we will continue the work on searching for new growth points and the most promising areas of structural changes for the transition of regions and the country as a whole to sustainable socio-economic development.

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Macroregion, northwest of Russia, value chains, interregional trade, economic integration

Короткий адрес: https://sciup.org/147238057

IDR: 147238057   |   DOI: 10.15838/esc.2022.3.81.5

Текст научной статьи Sales markets for the goods of the regions of the northwest of Russia: quantitative assessment

The agenda related to the transformation of intra-country value chains (VCs) is becoming more relevant due to the increasing regionalization of global trade. A tangible impetus to the activation of this direction was the disruption of value chains at the beginning of the coronavirus pandemic, when the shutdown of production and the closure of the borders of major countries led to the collapse of the usual economic ties and aggravated the relations between traditional partners. Thus, due to a tenfold increase in the cost of sea freight transport services in 2020–2021, competitive advantage was gained by suppliers offering products in geographical proximity to the buyer1.

The decline in the stability of trade relations has forced governments to overestimate the acceptable level of openness of their own economies. As V.A. Mau points out, the governments of major economies “clearly have a reduced willingness to pay for market efficiency with economic (and, consequently, political) security” (Mau, 2021).

The catalyst for the aggravation was the growing political rivalry between the United States and China, which quickly turned from trade negotiations to conflicts on the “economic front”. At the same time, the steps taken by the largest players in the world markets do not make the situation more stable. So, in 2020, a series of mutual conflicts between the United States and China resulted in the introduction of a number of mutual duties. One of the consequences of the tension on world markets was the official statement on the reorientation of the Chinese economy to the domestic market (Zhu, 2020). A new model of China’s economic development will focus on increasing consumption in the domestic market while simultaneously focusing on attracting foreign investment and stabilizing international trade. The main idea behind the development of the 14th five-year socio-economic development plan is the concept of “double circulation”: internal and external. At the same time, internal circulation is declared as the main one and implies the development of national supply and demand production chains. In the long term this strategy is aimed at eliminating the dependence of the Chinese economy on foreign markets and technologies2.

For the Russian economy, the development of production chains in the regions through the use of their cooperative potential is also a vital task. When relying on the export of raw materials and semifinished products and the import of final products, an important point is the loss of potential income from products that could have been produced on the Russian territory. As a result, the domestic market is developing more slowly; while in the latest market research conducted by Rosstat, business representatives note that the main (after the “uncertainty of the economic situation” sharply increased at the end of 2021) limiting factor in the growth of production activity is the very lack of more powerful domestic demand as a strategic resource that would give domestic entrepreneurs confidence3.

At the same time, the authorities are also interested in this topic, as evidenced by the coverage of the importance of production chains for the development of the domestic market in the Consolidated Strategy for the Development of the manufacturing industry of the Russian Federation4 (“In the field of consumer goods, we should focus on ensuring effective demand, both domestic and external”). We should also note that the fact that the Strategy consolidates the access to adjacent stages of production chains as a general principle of industrial development implies an increase in the potential of intra-country cooperation.

One of the drivers of the policy of mobilizing the spatial factor of national economic development in the Spatial Development Strategy of the Russian Federation5 is the division of the country’s economic space into macroregions (Minakir et al., 2020). The need to allocate macroregions increases when the potential of individual subjects is very small to solve certain tasks and it is necessary to consider their potential together and in a broader context (Kotov, 2021).

Within the framework of macroregions, it is planned to strengthen interregional cooperation and coordination of socio-economic development of RF constituent entities, the development of transport, energy, information and telecommunications infrastructure that will strengthen economic connectivity of territories, the completion of value chains, including through the implementation of large interregional investment projects. This, in turn, will require the development of strategies for socio-economic development of macroregions and plans for their implementation synchronized in time and space.

The national economic space in the Strategy is divided into 12 macroregions. The grid is based on federal districts, four of which in terms of territorial composition exactly coincide with the corresponding macroregions, and each of the other four is divided into two macroregions (Tab. 1) .

Table 1. Composition of macroregions of the Russian Federation

Federal district

Macroregion

Central

Central

Central Chernozem

Northwestern

Northwestern

Northern

Volga

Volga-Kama

Volga-Ural

Southern

Southern

North Caucasian

North Caucasian

Ural

Ural-Siberian

Siberian

South Siberian

Angara-Yenisey

Far Eastern

Far Eastern

Source: Spatial Development Strategy of the Russian Federation for the period up to 2025.

In our work, we rely on the fact that in the RF Spatial Development Strategy, one of the main directions of the country’s spatial development is stated to strengthen interregional cooperation and coordination of socio-economic development of subjects within macroregions. The purpose of the study is a quantitative assessment of the sales markets of regions of the Northwest of Russia, taking into account the industry and territorial specifics of production. At this stage, based on the materials of the regions of the Northwest of Russia, we provide the characteristics of interregional interactions within the macroregion.

There are two macroregions on the territory of the Northwest of Russia – the Northwestern macroregion, including the Republic of Karelia, Kaliningrad, Vologda, Leningrad, Murmansk, Novgorod, Pskov oblasts, the city of Saint Petersburg, and the Northern macroregion, including the Komi Republic, Arkhangelsk Oblast, Nenets Autonomous Okrug. Due to the historical interconnectedness of the Northern and Northwestern macroregions, we consider them jointly as the Northwest of Russia.

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