The mechanisms of influence of the state on regional economic activity - Курсовая работа

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Analyze foreign economic activity of the Russia. The international economics cooperation of Russian Far East with South Korea. Key factors affecting foreign economic activity. A model of economic cooperation of a domestic region with a foreign country.


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Contents Introduction The Russian Far East international economic activity and its cooperation with South Korea Paradiplomacy as a science Key factors affecting subnational foreign economic activity: Western literature analysis Research Design: a model of ‘economic cooperation of a domestic region with a foreign country’ Key factors affecting subnational foreign economic activity: Russian literature analysis Model modification according to the Russian context Conclusions Bibliography Appendix #1 Shares of the Central Federal District and the Far East Federal District in total Russian international trade Appendix#2 FDI inflows to the CFE and the FEFD Appendix #3 Distribution of FDI inflows to the RFE referring economic sectors in 2009 Appendix #4 RFE-SK trade (exports and imports) Appendix #5 SK FDI to Russia and the RFE Appendix #6 Theoretical model of ‘economic cooperation of a domestic region with its foreign partner’ according to the Western literature analyses Appendix #7 Theoretical model of ‘economic cooperation of a domestic region with its foreign partner’ according to the Russian context Introduction Today development of the Russian Far East (RFE) is an issue of a major concern for Russian authorities. Its strategic importance for Russia is determined by its huge territories, large natural resources, industrial, export and recreational potential, a favorable geographical position, because it is close to the Pacific. A Federal Program of “Economic and Social Development of the Far East and Zabaikalye till 2025” denotes that the shift of Russian political and economic interests to the East and active cooperation with the Asian countries could lead to enormous economic and geopolitical benefits to Russia. One of the most promising partners for Russia in Asia is South Korea (SK). Prominent Russian interest in cooperation with SK is largely explained by the fact that their mutual relations are considerably conductive to the RFE development. Indeed official authorities of the RFE are highly interested in cooperation with SK and argue the common activity has a bright potential. The main areas of cooperation include high-tech and agriculture industries, energy and natural resources, manufacturing, construction, transport, green technologies, space, public health and health care, culture, tourism, small and medium-sized businesses. From the other hand SK is also interested in fostering economic relations with the RFE. A South Korean strategy of cultivating mutual cooperation covers three the most perspective areas named as “silk roads”. It embraces such spheres as railway and logistics, power and oil and gas industries, green technologies and agriculture development. However despite a high potential of economic relations between SK and the RFE, statistics of their mutual economic activity demonstrates relatively low figures. But it is inconsistent with a high interest of SK and the RFE in mutual economic relations development. The facts mentioned above show a growing importance to explain the low level of economic cooperation between SK and the RFE. Therefore, this topic appears as a very up-to-date and important issue for a research. The object of the paper is factors influencing regional foreign economic activity. The subject is factors of central government - constituent unit relations, enabling/restraining regional foreign economic activity. The argument is the following: the main reason of low regional economic cooperation between a constituent unit and its foreign partner is insufficient level of foreign regional autonomy, which is controlled by a central government. The main theoretical task of the master’s thesis is to reveal and explain the mechanisms by which a central government can influence regional economic activity by constructing a model explaining causal relations between motivations of a constituent unit and its foreign partner to develop mutual economic relations and the mechanisms enabling/restraining realization of these motivations. While the main practical task is to transfer the model to the Russian context and make modifications if necessary. The more detailed tasks of this research include the following: · To find out motivations of Russia and SK to develop economic cooperation between the RFE and SK · To analyze foreign economic activity of the RFE and economic relations between the RFE and SK. · To define regional motivations to develop foreign economic activity · To find out the reasons why subnational foreign activity can be intensified or restricted and define an actor who is able to do it · To detect mechanisms by which the actor can influence subnational foreign economic activity and explain them · To find out an assessment method to estimate foreign economic cooperation of a region with its foreign partner · To create a theoretical model combining motivations, enabling/restraining factors, and regional foreign economic cooperation · To transfer the model to the Russian cont
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