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Kaliningrad: Enclaves and Economic Integration

As the Soviet Union broke up, Kaliningrad suddenly found itself separated from mainland Russia by new frontiers. Hardly any other Russian region has been hit as hard by the economic disruption as Kaliningrad. The geographical situation of the region meant that it was more highly exposed to the destabilising effects of post-communist economic transformation. Since then, a dramatic trade opening has occurred, and regional trade and production have undergone profound changes. Kaliningrad has experienced a major shift in its economic orientation towards the tertiary sector and a new industrial orientation based on its position as an intermediary in EU–Russian trade. In short, that is what this report is about: the present and future economic development of this Russian enclave during its integration into the world economy, its place in the international division of labour and in the Russian–EU economic interface. The major phenomenon relative to the economic development of the region is its enclave status. The report explores the specific features of enclave economies and, specifically, Kaliningrad. It argues that (a) economic openness is a prerequisite for an enclave’s prosperity; (b) the enclave should develop an multi-vectored orientation toward both the Russian market and the EU market complementing industrial specialisation targeting the mainland by new features; (d) as economic integration – with the surrounding state or on a non-discriminatory basis – has significant positive effects on enclaves, the future of Kaliningrad’s regional economy and its specialisation is profoundly connected to Russian–EU relations and the prospects for their economic integration.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 20937.

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Date of creation: 2007
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Handle: RePEc:pra:mprapa:20937
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  1. Niebuhr, Annekatrin & Stiller, Silvia, 2002. "Integration effects in border regions - a survey of economic theory and empirical studies," ERSA conference papers ersa02p066, European Regional Science Association.
  2. Neven, Damien J, 1994. "Trade Liberalization with Eastern Nations. How Sensitive?," CEPR Discussion Papers 1000, C.E.P.R. Discussion Papers.
  3. H W Armstrong & R Read, . "Trade and Growth in Small States: The Impact of Global Trade Liberalisation," Working Papers ec5/98, Department of Economics, University of Lancaster.
  4. Luca DE BENEDICTIS & Massimo TAMBERI, 2002. "A note on the Balassa Index of Revealed Comparative Advantage," Working Papers 158, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  5. T. Gareev & V. Zhdanov & G. Fedorov., 2005. "New Economy of Kaliningrad Region," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 2.
  6. repec:lan:wpaper:899 is not listed on IDEAS
  7. Rudiger Ahrend, 2004. "Russian Industrial Restructuring: Trends in Productivity, Competitiveness and Comparative Advantage," OECD Economics Department Working Papers 408, OECD Publishing.
  8. Vinokurov, Evgeny, 2007. "A Theory of Enclaves," MPRA Paper 20936, University Library of Munich, Germany.
  9. repec:lan:wpaper:898 is not listed on IDEAS
  10. J. David Richardson & Chi Zhang, 1999. "Revealing Comparative Advantage: Chaotic or Coherent Patterns Across Time and Sector and U.S. Trading Partner?," NBER Working Papers 7212, National Bureau of Economic Research, Inc.
  11. Salvatore Baldone & Fabio Sdogati & Lucia Tajoli, 2001. "Patterns and determinants of international fragmentation of production: Evidence from outward processing trade between the EU and Central Eastern European countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 137(1), pages 80-104, March.
  12. V. Lamand & E. Vinokurov., 2003. "Forming Trade Specialization of Kaliningrad Region," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 2.
  13. Keld Laursen, 1998. "Revealed Comparative Advantage and the Alternatives as Measures of International Specialisation," DRUID Working Papers 98-30, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
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