The Baltic Region

2017 Vol. 9 №4

Back to the list Download the article

Introducing Sectoral Models into Regional Management: An Assessment of Regulatory Impacts on the Economy



Regardless of the geography of regions, management at the regional level, both in Russia and the Baltic Sea countries, faces many challenges. Hence, it is necessary to search for new effective economic management tools, since traditional approaches and modeling practices at the regional level are not suitable for either analysing various types of impact on regional economy (production, market (product), sector, region), or assessment of their consequences and identification of the necessary measures in any given economic conditions. The authors construct sectoral models to assess regulatory impacts on regional economic performance. Assessments of regulatory impacts on product value chains, economic sectors, and regions as a whole show good repeatability, which makes it possible to provide a rationale for economic decision-making. The authors propose new sectoral models using the Kaliningrad region as an example. The models are used in a comprehensive analysis of conditions for a GRP growth resulting from an increase in sectoral contributions. To this end, the study uses the well-known approaches of simulation modelling, as well as qualitative and quantitative methods in combination with economic-mathematical optimisation models. The article presents a pilot model of regulatory impacts for selected sectors of the Kaliningrad economy. The developed and tested models suggest that a rationale for economic decision-making and consequent actions should be based on the assessment of the impact of different groups of external, internal, and independent factors on value chains, based on the criterion of optimal factor income. In conclusion, the authors offer recommendations for using the proposed models in business, public administration and regional economic modeling.


1. Andreeva, T. V. 2011, The projecting of product cost creation chains in food industry, Vestnik Orenburgskogo gosudarstvennogo universiteta [Bulletin of Orenburg State University], Vol. 13, no. 132, p. 6−13. (In Russ.)
2. Atamanchuk, G. V. Teoriya gosudarstvennogo upravleniya [The theory of state administration], Moscow, 2014, 525 p. (In Russ.)
3. Belyaev, A. N., Derman, D. O., Tsygankov, D. B. 2011, Methodological approaches to meta-evaluation of the quality of the regulatory impact assessments, Proektirovanie, monitoring i otsenka [Engineering, monitoring and evaluation], no. 1, p. 23—51. (In Russ.)
4. Voloshenko, K. Yu., Kuznetsova, A. L. 2014, The Balance Model of Regional Development Management in Certain Territorial Conditions: Development and Application, Balt. Reg., Vol. 6, no. 3, p. 4−21. doi: 10.5922/2079-8555-2014-3-1.
5. Gareev, T. R., Voloshenko, K. Yu. 2015, Features of Balance Model Development of Exclave Region, Ekonomika regiona [Economy of Region], Vol. 2 (42), p. 113−134. (In Russ.). doi: 10.17059/2015-2-9.
6. Gorshenina, E. V. 2009, Regional'nye ekonomicheskie issledovaniya: teoriya i praktika [Regional economic research: theory and practice], Tver, 203 p. (In Russ.)
7. Kuznetsova, Yu.V (eds.) 2014, Gosudarstvennoe strategicheskoe upravlenie [State strategic management], Saint Petersburg, 320 p. (In Russ.)
8. Kozbanenko, V. A. (eds.) 2002, Gosudarstvennoe upravlenie: osnovy teorii i organizatsii [State administration: foundations of theory and organization], Moscow.(In Russ.).
9. Granberg, A. G. 1988, Modelirovanie sotsialisticheskoi ekonomiki [Modeling of the Socialist Economy], Moscow, 487 p. (In Russ.)
10. Klimenko, A. V. 2014, The decade of administrative reform: results and new challenges, Voprosy gosudarstvennogo i munitsipal'nogo upravleniya [Public Administration Issues], no. 1, p. 8—51. (In Russ.)
11. Klimenko, A. V., Minchenko O. S. 2016, State regulation of the economy: theory and best practices, Voprosy gosudarstvennogo i munitsipal'nogo upravleniya [Public Administration Issues], no. 3, p. 7—30. (In Russ.)
12. Kostennikov, M. V., Kurakin, A. V. Pavlyuk, A. V. 2013, On the issue of definition and methods of state administration in administrative law, Administrativnoe i munitsipal'noe pravo [Administrative Law and Administration Practice], no. 5, p. 430—439. (In Russ.)
13. Meshkova, T. A., Moiseichev, E. Ya. 2015, Global Value Chains: World Trends and the Russia’s Involvement, Vestnik Finansovogo universiteta [Bulletin of the Financial university], Vol. 1, no. 85, p. 83−96. (In Russ.)
14. On the development of regulatory impact assessment Institute in the regions of the Russian Federation and bodies of local self-government in 2015, 2015, available at: (accessed 23.09.2016).
15. Porter, M. 2005, Konkurentnoe preimushchestvo: Kak dostich' vysokogo rezul'tata i obespechit' ego ustoichivost' [Competitive advantage: How to obtain a high result and to provide its stability], Moscow, 454 p. (In Russ.)
16. Raizberg, B. A. 2010, Gosudarstvennoe upravlenie ekonomicheskimi i sotsial'nymi protsessami [State management of economic and social processes], Moscow, 384 p. (In Russ.)
17. Soldatova, S. E., Voloshenko, K. Yu. 2016, Identifying and modeling the participation of regional agro-industrial sector producers in value chains, Upravlencheskoe konsul'tirovanie [Administrative Consulting], no. 10, p. 83—92. (In Russ.)
18. Tsybatov, V. A. 2016, Makroekonomicheskoe modelirovanie, prognozirovanie i planiovanie regionaln'ogo razvitiya [Macroeconomic modelling, forecasting and planning of regional development], Samara, 314 p. (In Russ.)
19. Amador, J., Cabral, S. 2016, Global value chains: A survey of drivers and measures, Journal of Economic Surveys, Vol. 30, no. 2, p. 278—301.
20. Banga, R. 2014, Linking into global value chains is not sufficient: Do you export domestic value added contents? Journal of Economic Integration, Vol. 29, no. 2, p. 267—297.
21. Bullón, D., Mena, T., Meng, B., Sánchez, N., Vargas, H. 2014, Using the Input-Output Approach to Measure Participation in GVCs: The Case of Costa Rica, Working paper prepared for the IARIW 33rd General Conference Rotterdam, The Netherlands, August 24—30, available at: (accessed 29.09.2016).
22. Fedorov, G. M., Korneevets, V. S., Tarasov, I. N., Chasovskiy, V. I. 2015, Russia among the countries of the Baltic region, International Journal of Economics and Financial Issues, Vol. 6, no. 4, p. 1502—1506.
23. Frederick, S. 2014, Combining the Global Value Chain and Global I-O Approaches, Discussion Paper prepared for the UN Statistics Division International Conference on the Measurement of International Trade and Economic Globalization, available at:,%20Stace.... (accessed 29.09.2016).
24. Elms, D. K., Low, P. (eds.) 2013, Global value chains in a changing world,Fung Global Institute (FGI), Nanyang Technological University (NTU), and World
Trade Organization (WTO), Geneva, WTO Publications, available at: (accessed 13.10.2016).
25. Global Value Chains in a Postcrisis World: A Development Perspective. World Bank. Washington, D. C. World Bank, 2014, available at: (accessed 13.10.2016).
26. Haidar, J. I. 2012, The impact of business regulatory reforms on economic growth, Journal of the Japanese and International Economies, Vol. 26, no. 3, p. 285—307.
27. Ju, J., Yu, X. 2015, Productivity, profitability, production and export structures along the value chain in China, Journal of Comparative Economics, Vol. 43, no. 1, p. 33—54.
28. Kaplinsky R., Morris, M. 2003, Handbook for Value Chain Research, IDS.
29. Kaplinsky, R., Terheggen, A., Tijaja, J. 2011, China as a Final Market: The Gabon Timber and Thai Cassava Value Chains, World Development, Vol. 39, no. 7, p. 1177—1190.
30. Karlik, A. E., Maksimtsev, I. A., Iakovleva, E. A. 2016, Modern architecture of global value chains and value chain management of Russia, Proceedings of the 19th International Conference on Soft Computing and Measurements, SCM 2016, p. 518—520.
31. Klemeshev, A. P., Fedorov, G. M., Manakov, A. G. 2015, Baltic subjects of the Russian Federation among border regions of Russia, International Journal of Economics and Financial Issues, no. 5 (SPEC. ISSUE), p. 41—48.
32. Kuzmin, A., Tsygankov, D. 2013, The emerging field of evaluation and the
growth of the evaluation profession: The russian experience, Canadian Journal of Program Evaluation, Vol. 28 (3), p. 87—102.
33. Kwon, T., Ryou, J-W. 2015, Global Value Chains of East Asia: Trade in Value Added and Vertical Specialization, Asian Economic Journal, Vol. 29, no. 2, p. 121—143.
34. Lenzen, M., Moran, D., Kanemoto, K. 2013, Building Eora: a Global Multi-Region Input-Output Database At High Country and Sector Resolution, Economic Systems Research, no. 12(1), p. 37—41.
35. Los, B., Timmer, M. P., de Vries, G. J. 2015, How global are global value chains? A new approach to measure international fragmentation, Journal of Regional Science, Vol. 55, no. 1, p. 66—92.
36. Mayer, F. W., Phillips, N., Posthuma, A. C. 2017, The political economy of governance in a ‘global value chain world’, New Political Economy, Vol. 22, no. 2, p. 129—133.
37. OECD. Recommendation of the Council on Regulatory Policy and Governance, 2012, available at: (accessed 12.01.2017).
38. Suder, G., Liesch, P. W., Inomata, S., Mihailova, I., Meng, B. 2015, The evolving geography of production hubs and regional value chains across East Asia: Trade in value-added, Journal of World Business, Vol. 50, p. 404—416.
39. Timmer, M. P., Los, B., Stehrer, R., Vries, G. J. 2013, Fragmentation, Incomes and Jobs: An Analysis of European Competitiveness, Economic Policy, no. 28, p. 613—661.