The Baltic Region

2019 Vol. 11 №1

The resistance of the greater Baltic region states to market cycle changes

Abstract

A non-linear change process is a specific feature of a poorly regulated market economy. However, many researchers have shown that different economic sectors do not respond to market cycles in a similar way. Regional economic systems are a combination of many sectors, therefore a hypothesis about the correlation between the stability of regional economies and market cycles is examined. The study is conducted using the Baltic countries (hereinafter referred to as Greater Baltic Region, GBR) as an example. GBR countries have been classified into highly stable, relatively stable, unstable, and highly unstable based on the study of the stability of national economies to global cycle processes. The GDP dynamics of the countries were compared to GDP cycles of the US and the EU, which are the main financial centres. To understand the reasons, the sectoral structure of GDP is additionally considered. The results allow the author to classify of GBR countries according to the structure of economic sectors and the stability of the regional economy.

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Environmental intensity of economic growth in the Baltic Sea region

Abstract

National economic development is subject to a number of restrictions. One of the main con­straints is the threat of complete exhaustion of non-renewable resources and environmen­tal pollution exceeding the capacity of the planet. However, the rapid spread of resource-saving technologies is reducing the environmental intensity of economic activities. In this study, I aim to examine the ecological-economic dynamics of the environmental effects of economic development in the regions of Russia’s North-Western Federal District (NWFD). I employ an extended version of Peter A. Victor’s model to produce a comprehensive evalua­tion of chang­es in economic indicators and correlate them with the total and specific envi­ronmental im­pact. Iconduct a factor analysis to identify the main effects influencing theecological-eco­nomic dynamics. The use of water resources in the NWFD demonstrates green growth, whereas electricity consumption and wastewater treatment fall into the brown zone and in­dustrial and municipal waste treatment into the black one. The factor analysis has shown that population change has a very weak effect on the situation. Much more influential factors are the income effect (higher incomes translate into greater consumption and thus more signifi­cant pollution levels) and the technological effect produced by a decrease in the environmen­tal intensity of production. To promote green development, it is advisable to in­crease the in­fluence of the technological effect by stimulating resource efficiency and switch­ing to the cir­cular economy model.

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Coastal agglomerations and the transformation of national innovation spaces

Abstract

In this article, I discuss the role of coastal agglomerations in the territorial heterogeneity of the world economy and the global innovation space. I pay particular attention to how prox­imity to the sea and ocean coasts influences the dynamics of innovation processes. I analyse coastalisation (the movement of economic activity and population to coastal zones) by con­sidering the effects and inland diffusion of the exceptionally high innovative potential of coastal agglomerations. I put forward the hypothesis that coastal agglomerations are the most important transformational elements of a national innovation system. Further, I outline and systematise findings dealing with the specifics of innovative processes taking place in coastal agglomerations under the influence of the agglomerative and coastal factors. The result of this study is a comparison and assessment of the mutual influence of the two effects of spatial development that translate into the unique identity of coastal zone cities: urbanisa­tion and coastalisation.

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