Interregional Competition Research Articles

Межрегиональная конкуренция за стратегические экономические факторы

The present research featured various ways to increase the investment attractiveness of regions, realize the potential of their development strategies, and assess the resource provision of their strategic priorities. The limited resources and ever-growing interregional competition mean that regions strive to increase their competitiveness and attract the missing resources. The paper introduces a new approach to the problem: the factors of economic development of regions should be divided into basic and mobile. These two groups are to be analyzed for the level of provision of the regional strategic development. Such approach can help local authorities to attract resources and implement the sustainability of the regional strategy, thus increasing the local strategic investment attractiveness and improving the quality of life in the region. Regional governments should select priorities that have a high potential for attracting mobile resources from other regions. The paper also contains an algorithm for analyzing the resource provision of strategic priorities.

Business process management in the system of competitive development of territories: Theoretical aspect

The purpose of the article is to study the theoretical foundations of business process management in the system of competitive development of territories. Methodology. The theoretical and methodological basis of the study are the scientific works of scientists in the study of business process management in the system of competitive development of territories. To achieve the goal set in the work, the following research methods were used: theoretical generalization – features and forms of competition of regions; methods of positive and normative analysis – to define the concept of “competitive potential of the region”. Results. It is determined that the problems of interregional competition are high and constantly growing, there are many white spots in the theory of understanding the features and methods of assessing the competitive properties and competitive potential of individual territorial development entities, unclear ways and means to use assessments of competitive attractiveness in management. The ways of development of territorial competition and methods of stimulating regions to increase their competitive attractiveness are insufficiently studied. It is proved that the scientific and innovative potential and mechanisms of their support are the most modern and promising source of competitive advantages. It is determined that the most developed countries are trying to increase their scientific and innovative potential, because it is a factor in creating fundamentally new products to upgrade and improve the quality of products, inventing new technologies to increase productivity and reduce resource costs. The scientific and innovative potential of the territory helps enterprises to update products more often, reduce their cost, i.e. use these competitive properties of the place to strengthen their competitiveness. It is proved that competitive advantages can be understood as the competitive potential of the region, which provides the possibility of its additional development by increasing the demand of the territory in conditions of free competition. It is substantiated that the competitive potential of the region is a set of competitive advantages and attractive characteristics of the region, which contribute to the efficient use of available and external resources, and distinguish the region among other actors in terms of its opportunities for effective socio-economic development. Practical meaning. Generalizations of features and forms of competition of regions can be used by scientists, teachers and students. Prospects for further research. Study of ways of development of territorial competition and methods of stimulation of regions for increase of their competitive attractiveness.

DETERMINANTS OF SOCIO-ECONOMIC SPACE DEVELOPMENT OF UKRAINE: THE CONCEPT OF REGIONALIZATION IN FOCUS

Purpose - This article aims to present the results of a comprehensive analysis of the determinants of the socio-economic space of Ukraine in the context of applying to them the concept of regionalization. Design/methodology/approach - In the article, author use a set of scientific methods that ensured the conceptual integrity of the study, in particular: system -- to study the structural development of the economy of the regions of Ukraine; methods of dialectical reasoning, induction, deduction - to justify strategic priorities; comparative and statistical analysis - to study the peculiarities of the development of the economy of the regions of Ukraine. Findings - The following factors of influence on the structural asymmetries and disproportions of the socio-economic development of individual regions have been identified: different adaptability of regions to the urgent requirements of economic development and conditions of competition; implementation of a regional policy to support progressive activities; the need to adapt to negative external and internal shock fluctuations in a pandemic; redistribution of resources and capital in favor of more developed regions; lack of systemic structural reforms at the macroeconomic level. A high level of openness of the Ukrainian economy was recorded due to a significant excess of exports over imports. Therefore, attention is paid to the structuring of regions by the level of exports and capital investments. It is concluded that exports have a significant impact on the economic growth of regions, and its dynamics is dominantly determined not so much by the devaluation of the hryvnia, but caused by external demand. Originality/value – The paper tested and confirmed the hypothesis about the positive impact of the rate of structural transformations and the assessment of the impact of capital investments on the growth of the GRP of the regions of Ukraine is carried out. This made it possible to structure the regions in terms of the ratio of the indicator to its average Ukrainian value. The distribution of regions into groups with a high, medium and low level of economic development was made, and the nature of the asymmetry of the territorial structure of the Ukrainian economy was assessed: • the asymmetry of the regions of the first and second groups gravitates (due to concentration) towards the central and eastern regions of the country (excluding the Lviv region). These regions are noted for high rates of human and social capital development and innovative activity, have the best prospects for the development of the entrepreneurial environment, the formation of a network of enterprises that can be combined into clusters; the development of a networked economy based on local growth points; • in the context of the regions' involvement in the intensity of foreign economic exchanges, the growth potential was recorded by the city of Kiev and a group of export-oriented regions (Dnipropetrivsk, Donetsk, Zaporizhzhia, Lviv, Poltava regions). These regions should become an impetus for the development of other regions and intensify their activity through interregional cooperation to enter the global market; • development of export-oriented regions is possible either due to increased expansion to foreign markets and higher prices or fundamental modernization of industry with a low degree of technological processing of products, and resource management. Regions that have exhausted their industrial resources should direct their development towards neo-industrialization, rehabilitation or revitalization of territories; • сompliance with global urbanization trends allows to quickly restore indicators of regional economic development in the winter period (due to the influence of internal and external shocks due to strict quarantine measures). These trends are demonstrated by the capital and individual large cities that perform the functions of world financial, innovation, information and cultural centers, as well as have developed connections with the periphery. Other regions (Lviv and others) demonstrate attempts at joint development with adjсacent territories. It is noted that the strength of the connection with other regions is more pronounced in relation to the connection with the periphery. The spread of the agglomeration effect of large cities with a population of one million produces innovative, technological and other components of the development of the potential of adjacent territories, which are characterized by an increase in the indicators of the economic efficiency of industrial production. It is expected that interregional competition will develop for the right to manage resources and determine the direction of socio-economic development of territories, the formation of new centers of economic growth, which are based on flexible networks (for example, following the virtual principle of distribution of territories). Practical consequences - the results of the study can be used by government agencies and other researchers to regulate the formation and development of regional socio-economic systems.

‘Not here for geopolitical interests or games’: the EU’s 2019 strategy and the regional and inter-regional competition for Central Asia

ABSTRACT The European Union’s (EU) 2019 New Strategy for Central Asia and joint meetings with Central Asia’s five foreign ministers established standards and expectations for mutual relations. Throughout those initiatives and proclamations, the EU stresses its un-geopolitical essence and behaviour, including the statement that affords the article’s title. The article identifies five issue areas that demonstrate that, despite declarations otherwise, the EU reasons and acts geopolitically in this contested region: (1) the promotion of Central Asian regionalism; (2) the inclusion of Central Asia in formations beneficial to the EU; (3) selectively in economic and functionalist cooperation; (4) democracy, human rights and civil society promotion; and (5) international education cooperation. The EU identifies its comparative advantage through cost–benefit analyses and seeks to enhance its attractiveness by offering its allies to Central Asia, while excluding other, present actors. That the EU is often outmanoeuvred does not diminish this subtle yet discernible geopolitical conduct.

Strategic Directions of Innovative and Economic Development of the Pskov Region

The modern development of the economy of the Russian Federation is characterized by an imbalance in the socio-economic development of the regions, which is due to the increased interregional competition, uneven resource provision, investment history, etc. Regions are components of the unified socio-economic and political system of Russia, but each of them has its specifics. Among the factors that determine the specifics of the region stand out: historical, climatic, national, social, and economic. Taking into account all these factors, the choice of means and methods of effective management of the socio-economic system of the region should be made to ensure its sustainable long-term development and functioning. In recent years, under the influence of a qualitatively different level of development of the productive forces, the introduction of innovations in all spheres of life, IT and telecommunication systems, as well as the development of network forms of organizing production, the problem has taken on new forms.

Prospects for the improvement of interregional cooperation in Russia (based on the example of the Siberian regions)

In the Russian Federation, interregional cooperation is limited, which negatively affects regional development and contributes to growing regional disparities. The goal of this research is to gain better understanding for slow and inconsistent development of interregional relations in Russia. The main hypothesis is that the lack of proper coordination and communication between the federal and regional levels of government, between regions themselves, as well as between regional authorities and other stakeholders in regions’ development is one of the key problems that hampers development of interregional cooperation in contemporary Russia. Retrospective, statistical, and content analysis were used to test this hypothesis. The analysis of the federal policy toward regional development since 1990 has shown gradual increase in centralisation of authority. The regional policy stimulated interregional competition and dependence on federal investments and subsidies. Nevertheless, the study of strategic plans of Siberian regions shows that with proper coordination and communication between interested parties some of the problems inhibiting interregional cooperation can be resolved. Better coordination, in turn, requires improvement of the institutional infrastructure. The findings are relevant for policy makers and scholars in the field of regional development. Further research is needed concerning the most efficient forms of coordination institutions.

Flocking to the crowd: Cultural entrepreneur mobility guided by homophily, market size, or amenities?

Economic activity and innovation clusters in urban areas. Urban economics points to important knowledge and productivity spillovers in cities, in addition to other factors like thicker markets, lower transportation costs, and consumptive amenities. Yet thus far little work has analyzed how these different factors drive migration decisions of arts-related entrepreneurs, especially when they work in online platforms for fundraising. We use data on the largest US crowdfunding platform to identify relocating creators, allowing us to identify which kinds of regions are attracting and retaining more of this sort of talent. We test for the influence of clustering based on homophily, migration to larger markets, and relocation toward particular geographic amenities. Overall we find the strongest evidence for homophily and some distinct tendencies favoring certain regional amenities. Importantly, we both identify general relocation patterns among crowdfunding creatives and break down the attracting features for different types of creators. An examination of (net) migration by different categories of projects, such as musicians or filmmakers, reveals important heterogeneity in the attractors. For example, musicians are drawn stronger music sectors, while writers seek more isolation from other writers. This helps inform the interregional competition for talent and “creative class,” especially among a group of relatively footloose arts- and culture-intensive entrepreneurs.

Theoretical and Methodological Foundations of Urban Areas Spatial Development

The established experience of socio-economic development is largely based on the territory’s urbanization. Cities are becoming the main points of development. They concentrate managerial, financial and human resources, and create the prerequisites for a post-industrial shift. The remaining territories – satellite towns, rural areas – have become supporting and supplying elements of urban development. However, any urbanization process has its limits: the intensive path of city development at a certain stage begins to fail and ceases to create favorable economic and social effects. The negative consequences of such growth - from environmental to infrastructural ones - are increasing. The purpose of the article is to analyze the evolution of methodological, theoretical aspects of spatial, agglomeration development, urban agglomeration development under the influence of driving forces. Spatial development is an activity in the direction of managing the territories devopment, as an integral object of regulation, which includes the tools of public administration. Urban agglomeration is a highly developed spatial form of integrated cities. This happens when relations between cities shift from competition to competition and cooperation. There is no unity in methodological approaches in the ongoing research on agglomeration, spatial development, and competition. The current review examines the main approaches to the allocation of productive forces, the theory of regional development, spatial, agglomeration development, in an attempt to give a theoretically and practically justified definition of territorial development in the context of increased interregional competition. The formation of a methodology for studying the problems of spatial development of the national economy and the development of an effective strategy for agglomeration development in the national economy should be largely carried out in the direction of an organic combination of various theories of space research and the use of appropriate tools for their practical implementation. The definition of the methodological foundations of the territory is not only of scientific and theoretical importance. The territory in the market conditions is the subject of economic relations. The management of an integrated territory and agglomeration in the face of increased interregional competition for resources and consumers requires the definition of the organic structure of the region - the system and mechanisms of territorial management, including organization, planning, regulation and control.

Interregional Competition for Mobile Creative Capital with and Without Physical Capital Mobility

A lacuna in the extant literature and our desire to contribute to the theoretical literature on how tax/subsidy policies can be used by regions to attract the creative class together provide the motivation for this paper. The paper’s basic contribution is that it is the first to theoretically analyze competition between two regions (1 and 2) for mobile creative capital, the key attribute possessed by the creative class. Both regions produce a final good using creative and physical capital. In the first case, physical capital is immobile and only region 2 uses tax policy to attract the mobile creative capital. We compute the equilibrium returns to creative and physical capital, we specify a key condition for creative capital in the aggregate economy, and we show which of three tax policies gives region 2 the highest income. In the second case, creative and physical capital are mobile and both regions pursue tax policies to attract mobile creative capital. Once again, we compute the equilibrium returns to creative and physical capital and then describe the optimal taxes for the two regions given that they wish to maximize regional income.

Understanding the impact of land finance on industrial structure change in China: Insights from a spatial econometric analysis

Land finance has played an essential role in China’s fiscal system, and the use of such in the future will impact the development of the industry. Introducing the terms land transfer-centered (LTC) mode and land investment-centered (LIC) mode, for land finance, this study aims to understand the relationship between land finance and industrial structure change by incorporating spatial factors. Using panel data at the Chinese prefecture-level from 2004 to 2017, the dynamic spatial Durbin model (SDM) was applied. The empirical results indicate that the industrial structures of the cities have spatial dependence. Furthermore, the employment of the LTC and LIC modes resulted in different industrial structures, both in focal and adjacent cities. Specifically, the LTC mode, which helps the government to gain land conveyance revenue, cannot boost the optimization of industrial structure. In a LIC mode where the agreement-based land transfer area is expanded, the advancement of industrial structure is hindered, while a LIC mode that increases the agreement-based land transfer price can facilitate the upgrade of industrial structure to some extent. Additionally, the spatial spillover effects of land finance suggest there are interregional competition and imitation, with negative effects on industrial structure change in adjacent areas. Considering the overall negative effects of land finance on industrial structure advancement, specific policy guidelines are provided based on the different industrial structure change pathways that result from the two modes of land finance. Improvement of the local government’s evaluation systems and formulation of targeted and instructive land finance strategies are crucial to upgrade industrial structure.

Interregional Competition for Mobile Creative Capital With and Without Physical Capital Mobility

A lacuna in the extant literature and our desire to contribute to the theoretical literature on how tax/subsidy policies can be used by regions to attract the creative class together provide the motivation for this paper. The paper’s basic contribution is that it is the first to theoretically analyze competition between two regions (1 and 2) for mobile creative capital, the key attribute possessed by the creative class. Both regions produce a final good using creative and physical capital. In the first case, physical capital is immobile and only region 2 uses tax policy to attract the mobile creative capital. We compute the equilibrium returns to creative and physical capital, we specify a key condition for creative capital in the aggregate economy, and we show which of three tax policies gives region 2 the highest income. In the second case, creative and physical capital are mobile and both regions pursue tax policies to attract mobile creative capital. Once again, we compute the equilibrium returns to creative and physical capital and then describe the optimal taxes for the two regions given that they wish to maximize regional income.

Catch-up and Convergence: Mechanism Design for Economic Development


 
 
 A globalization process can be conceived as an evolving distributed algorithmic mechanism design (DAMD) that induces technology racing with natural catch-up processes of regional or country-wide competition.
 We describe the architecture of DAMD as the basis for development economics that lead to natural ongoing shifts in industrial performance and catch-up development. The link between implementation of DAMD and a dynamic system of country-wide industrial evolution is essential for understanding the diverse pattern of inter-country or inter-regional competition.
 By selectively reviewing a cross section of the catch-up literature on economic growth it is shown which essential elements of long-run sustainable growth dominate to achieve superior performance and why informationally efficient mechanism design of the Hayek-Hurwicz type is a superior vehicle for industry based economic growth in a globalized economy.
 
 

School graduates as the basis of the human capital of the region on the example of the Republic of Tyva

In the modern conditions of interregional competition, there arises the issue of attracting and preserving the human capital of the region. The Republic of Tyva is losing significantly in this interregional rivalry. The factors that reduce the attractiveness of the region for its graduates and labor migrants from other regions are a small selection of educational institutions, high unemployment, the region's lagging behind in infrastructure provision. Grades 9 and 11 students are one of the main sources of human capital in any region. Graduates choose their future profession, university, place for their further residence (stay in another city or return to their small homeland). Thus, they unconsciously determine which region will receive new human resources. This article analyses the results of surveys of school graduates in the capital of the Republic of Tyva - the city of Kyzyl, conducted in 2010 and 2019. Comparative analysis showed that against the background of socio-economic changes that have taken place in the republic over the decade, the preferences of graduates when choosing future professions have changed. One can trace a clear relationship between the increase in the supply of jobs in the labor market and the growing popularity of certain professions. According to the results of sociological research, it can be stated that while maintaining the current socio-economic situation in the Republic of Tyva, the majority of school graduates in the city of Kyzyl will not become the basis for the formation of the region's human capital. For the republic, the issues of creating new jobs, increasing the social attractiveness of the region for further living, that includes solving housing and household issues, as well as improving the quality of social services for the population, transport accessibility, and improving the standard of living of the population, remain relevant. All of the above in aggregate will contribute to the formation of the region's human capital.

Scientific substantiation of the regional development strategy of the PRC in the second half of the XX century (based on the works of Chinese economists Ma Hong and Li Jingwen)

Based on the analysis of the main works of famous Chinese scholars Ma Hong and Li Jingwen, the article presents scientific conclusions on the implementation of the strategy of socio-economic regional development of the PRC in the second half of the XX century in the following areas: a comprehensive assessment of the policy of reforms and openness, analysis of rationalization of economic management systems, research on inter-regional competition and prospects for the development of a socialist commodity economy. In Chinese historiography, the issues of strategic socio-economic transformations are reflected in the monographs of various scholars of historians, economists, geographers An Husen, Wang Shenjing, Ye Yumin, Ren Baoping, Liu Weidong, Sun Jiuwen, Sun Shangqing, Wu Shuqing, Cao Yuhoy, Jing Yuejun, Zhang Wenzhong, Zhang Xiaolei and Cheng Bidin, as well as on the pages of magazines such as Jingji Guancha (Economic Observation), Zhongguo Gune Jinji (Industrial Economy of China), Chengshi Guihua (Urban Planning), Quuyu Jinji Pinglun (Regional Economic review), Guotszi venti Yanji (Research International), Zhongguo shi di byantszyan Yanji (Study of history and geography of Chinas border areas). The purpose of this article is to identify the features of the scientific justification of socio-economic transformations in China in the second half of the XX century Chinese scholars economists Ma Hong and Li Jingwen. To achieve this goal, using the method of logical and concrete analysis of the main works of leading Chinese economists, patterns were identified in the scientific justification for the implementation of the strategy of socio-economic regional development of the PRC in the second half of the XX century. At the end of the XX century, Chinese economists in their research focused on the study of regional features of implementation of the policy of reform and openness, while using the results of their research activities in the process of managing regional economic projects of the PRC.

Legal Instruments for Stimulating Interregional Competition for Investment

In order to study the role of legal instruments in stimulating the spatial competition and economic integration of the entities of the Russian Federation, it is necessary to examine a system of interacting regions. Regional laws on investment promotion have been acting and improving for a long time. Thus, the paper examines the set of these laws and their impact on interregional integration and regional competition. The study identifies three levels of competition: the all-Russian competition, competition within federal districts, and competition between neighbouring regions. As benefits as instruments for attracting investments are applied in regions, they influence the decision to invest in other regions. Therefore , the developed econometric mode l of dynamic panel regression of investments assesses the economic interaction between the regions. The model “the dynamic panel regression of investments taking into account the competition between the regions” (DPRI-CR) includes stimulation instruments and spatially weighted variables related to regional benefits. The indicators for assessing regional spatial interaction are based on the coefficients of the similarity of the legal systems in two regions. Testing of the DPRI-CR demonstrates the exiting external positive, negative and neutral effects of investment benefits that significantly differ depending on the level of competition. An increase in the regional economic integration causes an increase in the positive and negative effects. Consequently, the investment policies that are aimed at increasing economic interaction should take into account the region’s economic integration with the economies of the neighbouring regions, regions of the federal district and other entities of the country. The regions, which are closely integrated with the majority of regions, have the most opportunities to use the external effects. They can apply either “driving force of the economy” instruments to enhance positive effects or “driving force of the progress” instruments to increase their competitive position.

The political economy of interregional competition for firms

This paper studies interregional competition for a multinational firm when the bidding is decided by the median voter. We model the competition as an auction under full information between two asymmetric regions inhabited by low- and high-skilled individuals. We derive two results: First, the location decision is inefficient in most cases. Second, winning the auction is harmful for the region, if the political process and strong competition lead to subsidies which exceed the surplus created by a firm's location. This implies that restricting interregional competition for firms, e.g. regulating subsidies, may enhance welfare.

Аспекты развития межрегиональной конкуренции

Аспекты развития межрегиональной конкуренции

THE REGION IMAGE: Specifics, Basic Elements and Technologies of Formation

Introduction. The efficiency of functioning of market processes is defined both by partnership and by the interregional competition in modern Russia. Strengthening of responsibility of regions for results of regional economic growth stimulates the aspiration to be allocated among similar, to strengthen and expand positions in the market, to create high-cost idea of the positioned territory induces regional authorities to pay special attention to formation and advance of the region image as a real administrative resource. Owing to the fact that the image is the result of purposeful information and communicative activity success of the named problem solution depends on research and development in the sphere of imagology and also understanding degree of formation mechanisms of the region image by power structures, the attracted technologies of its positive formation and correction, creating of steady presence in the information space what actualize the stated perspective. In this regard a main objective of this work is the theoretical and methodological analysis of the region image studying, in the context of determination of the main research categories in relation to the territory; definitions of the image analysis elements and description of the technologies designing the region image. Materials and Methods. The structural analysis, functional, system, axiological approaches and a hermeneutical paradigm acted as the theoretical and methodological strategy of the research. Results. Research approaches to understanding of the terms «image», «brand», «reputation» are analyzed. So, the image of the territory is understood as the complex image, which is purposefully formed by special communicative technologies in this work, proceeding from the available territorial resources and advanced among representatives of target groups. As the major image-forming factors are considered: natural and geographical characteristics, tendencies and orientation of the political sphere development, level of regional economy development and its investment potential; interregional and international relations; condition of the social and demographic sphere; identity of historical and cultural traditions; ethno national and ethno confessional originality of the region; level of the realized information policy, etc. Discussion and conclusions. Distinguish advertising, PR and branding are the most often used image technologies. Their level of development gives the chance of diversification now being guided by the customer and conditions of realization. In the conditions of virtualization of policy for the federal center the secondary image of the territory arising in the course of the interregional competition becomes a peculiar estimated means of efficiency of activity of regional leaders and state governing bodies. At the same time, despite understanding of the importance, ultimate goals and strategy by the regional authorities, a complex – from development until monitoring – the territorial image policy is not implemented. Most often development of appeal of the territory is connected with separate actions or PR-programs of formation of a favorable investment image, climate. The received results of this research become prerequisites for further studying of a phenomenon of image of territories in the context of studying deepening of experience of certain Russian regions, its applied analysis Keywords: territory, region, territorial image, PR-program, territorial branding, image making, visualization.

Citizens’ support for inter-municipal cooperation: evidence from a survey in the German state of Hesse

ABSTRACTInter-municipal cooperation (IMC) is often proposed as a politically feasible way by which rural municipalities can cope with intensified interregional competition and demographic change. We provide first evidence on citizens’ support for IMC using survey data from rural Germany. We find little evidence that citizens are more willing to support IMC in munici-palities that can – by the logic of economic theory – expect higher net benefits from IMC. Citizens’ support for IMC is primarily shaped by individual-level factors like the level of education, trust in local politicians and the degree of emotional attachment to the home mu-nicipality. Citizens’ beliefs regarding the economic and political consequences of IMC are found to have the largest marginal effect by far. Regressions predicting interpersonal differ-ences in these beliefs show that these beliefs have to be considered independent drivers of policy preferences. This result suggests that more research is needed to better understand the factors shaping citizens’ understanding of how economic policy works. This lack of under-standing applies to virtually all fields of economic policy.

Vocational schools as an instrument of interregional competition—Empirical evidence from German counties

We analyze expenditures on vocational schools on county level using data from 193 West-German counties between 2001 and 2006. These expenditures represent the main public input to the widely acknowledged German apprenticeship system by local governments. We use spatial econometrics to test for spatial correlation in counties’ expenditure on vocational schools but find no evidence that vocational schools serve as instrument in inter-regional competition. This conclusion receives further support by an alternative test, in which we compare the teacher-to-pupil ratio of counties on the state border and interior counties. The test does not give any indication that the teacher-to-pupil-ratio is higher in counties located at the state border.