The Baltic Region

2015 Issue №3(25)

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Towards a Stable and Dynamic Economy in the Kaliningrad Region



The economy of the Kaliningrad exclave is not sufficiently stable and is heavily affected by external factors. This work aims to estimate the current economic situation in the region and explore possible ways to increase the stability of regional economy. The study employs economic statistical methods and identifies factors affecting regional development. The author analyses the dependence of the manufacturing industry on customs and tax privileges under the law On the Special Economic Zone in the Kaliningrad region and federal programmes supporting the development of manufacturing and social infrastructure. The article stresses that the abolition of customs privileges in 2016 will result in a significant reduction in industrial output, since a lot of production is heavily dependent on imported raw materials and components. It is expected that the companies enjoying customs privileges to produce goods for the national market will receive government support for reequipment. Effective use of the allocated funds would require setting up a regional programme identifying priority areas of regional economic development thus ensuring economic stability. There is also a need to support companies ensuring the economic — including food — security of the region.


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