Integration of the Russian Economy into Global Value Chains: Regional Dimension

Abstract

The article examines the issues pertinent to the integration of the regional economy into global value chains which play a significant role in the modern world economy. However, the Russian economy is integrated into the organization of production across national boundaries on disadvantageous terms, i.e. mainly as a supplier of raw materials. The article concludes that it is necessary to improve international specialization of the Russian economy so as to increase the production of high value added goods and services. Given the increasing regional disparity of social and economic development in the Russian Federation and the recent government economic policy with pronounced equalization efforts, it is suggested that special attention be drawn to the regional dimension of national business participation in global value chains on advantageous terms. The article considers the possibility to shift the focus of regional economic policy from supporting individual branches to supporting specific businesses and productions which could be viewed as a part of global value chains; these businesses or productions can be set up either within the exciting companies or the newly created ones. In this regard, the author proposes a new typology of regional economic sectors subject to government regulation. The article determines the principles that guide interactions between government bodies, scientific-research organizations and businesses while implementing production projects which are part of regional and global production nets.