Territorial development of the Republic of Karelia in the context of the theory of circular cumulative causation

DOI

10.2991/cssdre-19.2019.105How to use a DOI?

Keywords

regional economy, inequality, spatial economy, investment climate

Abstract

It is impossible to imagine the development of modern spatial economy without taking into account the effect of circular cumulative causation, when individual territories have an impact on other territories and this relationship is nonlinear. The Republic of Karelia is a region composed of such heterogeneous territories. The polarization of the economic space together with the effect of circular cumulative causation multiplies the contrasts between the leading territories and the territories-outsiders, which leads to negative social selection: the displacement vector of the most skilled workforce flowing from the territories-outsiders in the regional centers, then to the big cities and abroad. In order to ensure a breakthrough in the economic development of the territories, it is necessary to eliminate the negative impact of the effect of circular cumulative causation and make this impact, on the contrary, positive. To do this, it is necessary, first, to identify and describe the negative manifestations of this effect and, secondly, to propose mechanisms for its transformation into a positive direction, when the leading territories will not absorb the resources of other territories, but will contribute to their increment and more rational use at the local level. This provision determines the goal of the study. The main theoretical and applied methods of work are the reference to the methodology of spatial economics, presented by the works of domestic and foreign researchers (first of all, the fundamental works of G. Myrdal), as well as a comparative and statistical analysis of the development of the territories of Republic of Karelia on the basis of open official sources. As the main conclusions of the undertaken study can be identified: 1) synthesis of the accumulated theoretical material in the analysis of the effect of the circular cumulative causation; 2) statistical analysis of the territory development of the Republic of Karelia, taking into account the negative impact of the effect of the circular cumulative causation; 3) the development of measures for transformation of the negative effect of the circular cumulative causation in the positive on the example of the Republic of Karelia.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Nikolai Levkin
AU  - Sergey Vereshko
PY  - 2019/06
DA  - 2019/06
TI  - Territorial development of the Republic of Karelia in the context of the theory of circular cumulative causation
BT  - Proceedings of the Volgograd State University International Scientific Conference "Competitive, Sustainable and Safe Development of the Regional Economy" (CSSDRE 2019)
PB  - Atlantis Press
SP  - 545
EP  - 549
SN  - 2352-5428
UR  - https://doi.org/10.2991/cssdre-19.2019.105
DO  - 10.2991/cssdre-19.2019.105
ID  - Levkin2019/06
ER  -