DYNAMICS OF GRP PER CAPITA DIFFERENCES BETWEEN THE BORDER REGIONS OF RUSSIA AND FINLAND

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Abstract

The article analyzes the dynamics of interregional differences in the border regions of Russia and Finland. Border regions have advantages related to their geographical location, which results in a wider range of foreign economic relations with other countries of the world community due to the transport accessibility of the territory. The aim of the research is to provide a better understanding of the geographical location of the area. The aim is to study the economic development of the neighbouring countries' border areas (the economies of Russia and Finland are covered in this article). The object of the research is the border regions of Russia and Finland, and the subject of the research is the level of interregional differentiation of these border areas. The study of interregional differences is carried out when applying the tools used in modeling σ and β-convergence based on the calculation of the coefficient of variation. The indicator for comparative analysis of interregional differentiation of border regions is the dynamics of GRP per capita. In the current study the indicators of regional development of different national economies are considered. Socio-economic indicators in statistical collections are presented in different units of measurement. In order to carry out a comparative analysis of the economic indicators under study, the indicators were compared to a single unit of account. The process of comparing economic indicators was carried out using the dynamics of changes in the average exchange rate of the euro to the ruble. The analysis of σ- and β-convergence carried out as a result of the study has determined different dynamics of regional development, which is characterized by a slow decrease in the interregional differentiation. As a result of this trend, we can talk about the process of convergence of levels of economic development of border regions in the long run.

About the authors

Marina V. Moroshkina

separate subdivision of the Federal State Budget Institution of Science of the Federal Research Center «Karelian Research Centre of the Russian Academy of Sciences (Institute of Economics of the Karelian Research Centre of the Russian Academy of Sciences)

Author for correspondence.
Email: maribel74@mail.ru

researcher, Institute of Economics 

Russian Federation

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