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Additional Transaction Costs to the Economy and the Population of the Kaliningrad Region of Russia

Author

Listed:
  • Zhdanov, Vitaliy

    () (Board of the Kaliningrad regional Union of consumer societies)

  • Pliukhin, Mikhail

    () (“AVTOTOR Holding Management” LLC)

Abstract

From the perspective of the organization of state administration, one of the most complicated federal territories has quite recently been the Kaliningrad region, which is detached from the rest of Russia by the borders of the new states, including the member countries of the EU and NATO, and by international waters. In the world practice, special modes of management and mechanisms of support are applied to such territories. In order to select instruments and volumes of state support it is imperative to obtain an understanding of what and to what extent these measures are to compensate. Through the spectacle of institutional economic theories, authors have studied causes of additional transactional expenditures, proposed a classification and estimated volumes of such expenses. Thus, the total amount of additional transactional costs of the Kaliningrad region, calculated in terms of 2014, is at least 23,3 billion rubles, wherein a large burden falls not on the regional population but on economic entities. In this way, additional expenses of economic agents are 8,2% of the gross value added in the region. Additional costs of the Kaliningrad region population are 5,6% of the level of final consumption of households. When developing regulatory acts that govern activities in the conditions of the Kaliningrad region it is imperative to consider the factor of objectivity of additional transactional costs that are specific to the conditions of the Kaliningrad region, and to develop both compensation mechanisms and measures to support the population and specific sectors of the regional economy accordingly. The results of this research can be utilized for elaborating state regional policy measures and be of avail to scholar and practitioners concerned with the issues of development of special Russian territories.

Suggested Citation

  • Zhdanov, Vitaliy & Pliukhin, Mikhail, 2017. "Additional Transaction Costs to the Economy and the Population of the Kaliningrad Region of Russia," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 2, pages 180-207, April.
  • Handle: RePEc:rnp:ecopol:ep1718
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    Keywords

    Kaliningrad region; institutional economic theory; transaction costs;

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights

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