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Spatial Integration of the Economy: Theoretical Concepts and Problems of Implementation at the Regional Level

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Abstract

With a critical analysis of theoretical concepts, the article substantiates the essence, “generic” features, prerequisites, and conditions for ensuring spatial integration of the regional economy. It is shown that integration is often interpreted as a synonym for the convergence of territories; however, based on an analysis of the interaction between the municipalities of the Republic of Karelia and Finland, it has been proved that, in practice, it does not always ensure convergence. Considering integration as a process that develops over time and across spheres, using the law of one price, as well as the “flow” approach to assessment, the features of integration processes in the markets of goods and factors of production (labor) of the northern regions were studied. The institutional, legal, and infrastructural aspects of spatial integration are analyzed, as well as the barriers to and problems of its implementation at the intra- and interregional levels. The priorities of state policy to ensure unity of the country’s economic space are substantiated.

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Notes

  1. The problem is characteristic not only of Russia. Thus, accelerated development of China’s export-oriented eastern provinces against the lagging development of the western and central regions led to disintegration of the Chinese space (Guo, 2016).

  2. Competition is also undergoing changes in evolution (Polterovich, 2015, p. 45): the role of institutions of cooperation and horizontal cooperation is increasing therein (Kryukov, 2020, p. 32), both in the business environment and between territorial systems at various levels.

  3. Official site of Industrial Development Fund of Republic of Karelia. https://karelia.news/analitika/10081009/rost-yeksporta-bum-v-turizme-razvitie-arktiki-kak-perezhila-yekonomika-karelii-trudnyy-2022-y/. Accessed April 12, 2023.

  4. The Arkhangelsk timber industry complex has sharply increased its exports to African and Asian countries. https://pravdasevera.ru/2023/01/16/63c51c27d1d3f53209491202.html. Accessed April 14, 2023.

  5. As well, the values of the coefficient in the study period were higher than in the early 2000s (then, the value of βt was 0.20–0.28).

  6. It is calculated as the ratio of the average annual number of unemployed (according to ILO methodology) to the average annual number of vacancies reported by employers to the public employment service.

  7. N. Zamyatina, Salekhard and Vorkuta: On different sides. https://goarctic.ru/society/salekhard-i-vorkuta-po-raznye-storony/. Accessed April 12, 2023.

  8. Territorial Body of the Federal State Statistics Service for the Republic of Karelia. https://krl.gks.ru/. Accessed April 12, 2023.

  9. In the structure of the economies of Finnish municipalities, a significant share is occupied by the blue, forest bioeconomy, distributed bioprocessing, photonics, ICT, the development of materials for the chemical industry, and wooden housing construction. In Karelia, the key industries are forestry and mining, power generation, and food and chemical industries. https://www.euregiokarelia.com. Accessed April 12, 2023.

  10. Analytical Review: Infrastructure of Russia. 2020 Development Index. https://infraone.ru. Accessed April 12, 2023.

  11. Official site of ANO Strategic Partnership Northwest. https://n-west.su/. Accessed April 12, 2023.

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Funding

The study was supported by the Russian Foundation for Basic Research (project no. 20-110-50192).

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Correspondence to S. A. Kozhevnikov.

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The article has been substantially revised and expanded by the author for publication in Regional Research of Russia.

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Kozhevnikov, S.A. Spatial Integration of the Economy: Theoretical Concepts and Problems of Implementation at the Regional Level. Reg. Res. Russ. 13, 386–396 (2023). https://doi.org/10.1134/S2079970523700818

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