IDEAS home Printed from https://ideas.repec.org/a/bic/journl/v13y2013i2p111-127.html
   My bibliography  Save this article

The special economic zone in the Kaliningrad region: development tool or institutional trap?

Author

Listed:
  • Timur Gareev

    (Immanuel Kant Baltic Federal University)

Abstract

In this paper we examine the special case of the “degenerated” Special Economic Zone (SEZ) in the Russian exclave on the Baltic Sea — the Kaliningrad region. The ‘compensation Vs. development’ policy dilemma associated with the SEZ in the exclave is elaborated using modified ERP and ETR techniques. Factual results and consequences of more than 20 years of ongoing SEZ institutional instability (a transitional shift from customs tariff to profit taxation preferences) are examined. We show how transfer pricing and formation of hybrid structures reinforce the import-substitution bias of exclave economics. Some concerns about the trade-off between stimulation policies and economic efficiency in the context of the SEZ are discussed.

Suggested Citation

  • Timur Gareev, 2013. "The special economic zone in the Kaliningrad region: development tool or institutional trap?," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 13(2), pages 111-127, December.
  • Handle: RePEc:bic:journl:v:13:y:2013:i:2:p:111-127
    as

    Download full text from publisher

    File URL: https://www.tandfonline.com/doi/epdf/10.1080/1406099X.2013.10840535
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bela Balassa, 1965. "Tariff Protection in Industrial Countries: An Evaluation," Journal of Political Economy, University of Chicago Press, vol. 73(6), pages 573-573.
    2. Ash Amin, 1999. "An Institutionalist Perspective on Regional Economic Development," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 23(2), pages 365-378, June.
    3. Claude Ménard & Mary M. Shirley (ed.), 2008. "Handbook of New Institutional Economics," Springer Books, Springer, number 978-3-540-69305-5, February.
    4. Anderson, James & Naya, Seiji, 1969. "Substitution and Two Concepts of Effective Rate of Protection," American Economic Review, American Economic Association, vol. 59(4), pages 607-612, Part I Se.
    5. Zee, Howell H. & Stotsky, Janet G. & Ley, Eduardo, 2002. "Tax Incentives for Business Investment: A Primer for Policy Makers in Developing Countries," World Development, Elsevier, vol. 30(9), pages 1497-1516, September.
    6. Roberta Capello & Peter Nijkamp (ed.), 2009. "Handbook of Regional Growth and Development Theories," Books, Edward Elgar Publishing, number 12874.
    7. W. M. Corden, 1966. "The Structure of a Tariff System and the Effective Protective Rate," Journal of Political Economy, University of Chicago Press, vol. 74(3), pages 221-221.
    8. Waters, W G, II, 1970. "Transport Costs, Tariffs, and the Pattern of Industrial Protection," American Economic Review, American Economic Association, vol. 60(5), pages 1013-1020, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Timur Gareev & Ksenia Voloshenko, 2015. "Features of Balance Model Development of Exclave Region," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(2), pages 113-124.
    2. Hanna Godlewska-Majkowska & Agnieszka Komor & Magdalena Typa, 2016. "Special Economic Zones as Growth and Anti-growth Poles as Exemplified by Polish Regions," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 4(4), pages 189-212.
    3. Alexey Kuznetsov & Olga Kuznetsova, . "The success and failure of Russian SEZs: some policy lessons," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    4. Joanna Dziendziora & Małgorzata Smolarek & Barbara Piontek, 2021. "Activation of Investment Processes in the Context of Operation of Special Economic Zones in Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 130-146.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Antimiani, Alessandro & Fusacchia, Ilaria & Salvatici, Luca, 2016. "Value Added Trade Restrictiveness Indexes. Measuring Protection with Global Value Chains," Conference papers 332745, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Manfred Walser & Roland Scherer, 2012. "How to Improve the Region’s Ability to Learn: A Micro-level Model on Regional Actor's Knowledge and (Informal) Learning Processes," Chapters, in: Knut Ingar Westeren (ed.), Foundations of the Knowledge Economy, chapter 9, Edward Elgar Publishing.
    3. Schultz, T. Paul, 2006. "Does the Liberalization of Trade Advance Gender Equality in Schooling and Health?," Center Discussion Papers 28430, Yale University, Economic Growth Center.
    4. Zhaohui Niu & Chang Liu & Saileshsingh Gunessee & Chris Milner, 2018. "Non-tariff and overall protection: evidence across countries and over time," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(4), pages 675-703, November.
    5. Luke Willard, 2000. "Does Openness Promote Growth?," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 7(3), pages 251-261.
    6. Lindland, Jostein, 1997. "The impact of the Uruguay Round on tariff escalation in agricultural products," Food Policy, Elsevier, vol. 22(6), pages 487-500, December.
    7. Antoine Bouët, 2000. "La mesure des protections commerciales nationales," Working Papers 2000-15, CEPII research center.
    8. Ishikawa, Jota & Lee, Ki-Dong, 1997. "Backfiring tariffs in vertically related markets," Journal of International Economics, Elsevier, vol. 42(3-4), pages 395-423, May.
    9. Garred, Jason, 2018. "The persistence of trade policy in China after WTO accession," Journal of International Economics, Elsevier, vol. 114(C), pages 130-142.
    10. Bo Chen & Hong Ma & David S. Jacks, 2017. "Revisiting the Effective Rate of Protection in the Late Stages of Chinese Industrialisation," The World Economy, Wiley Blackwell, vol. 40(2), pages 424-438, February.
    11. Rouzet, Dorothée & Miroudot, Sébastien, 2013. "The Cumulative Impact of Trade Barriers along the Value Chain: An Empirical Assessment using the OECD Inter-Country Input-Output Model," Conference papers 332366, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. Anderson, James E., 1998. "Effective protection redux1," Journal of International Economics, Elsevier, vol. 44(1), pages 21-44, February.
    13. J Fedderke & P Vaze, 2001. "THE NATURE OF SOUTH AFRICA'S TRADE PATTERNS BY ECONOMIC SECTOR, AND THE EXTENT OF TRADE LIBERALIZATION DURING THE COURSE OF THE 1990′s," South African Journal of Economics, Economic Society of South Africa, vol. 69(3), pages 436-478, September.
    14. James E. Anderson, 1994. "Effective Protection Redux," Boston College Working Papers in Economics 273., Boston College Department of Economics.
    15. Kanika Pathania & Aditya Bhattacharjea, 2020. "Inverted Duty Structures and the Paradox of Negative Effective Protection in India, 2000–2014," Foreign Trade Review, , vol. 55(2), pages 139-167, May.
    16. Avinash K. Dixit & Gene M. Grossman, 1982. "Trade and Protection with Multistage Production," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 49(4), pages 583-594.
    17. Marks, Stephen V., 2011. "Lao economic policies and effective rates of protection," Journal of Asian Economics, Elsevier, vol. 22(2), pages 115-127, April.
    18. repec:phd:pjdevt:jpd_1987_vol__xiv_no__1-c is not listed on IDEAS
    19. Pol Antràs & Davin Chor, 2021. "Global Value Chains," NBER Working Papers 28549, National Bureau of Economic Research, Inc.
    20. Escaith, Hubert, 2014. "Exploring the policy dimensions of trade in value-added," MPRA Paper 59891, University Library of Munich, Germany, revised 08 Nov 2014.
    21. Amjadi, Azita & Yeats, Alexander J., 1995. "Have transport costs contributed to the relative decline of sub-Saharan African exports? Some preliminary empirical evidence," Policy Research Working Paper Series 1559, The World Bank.

    More about this item

    Keywords

    Special economic zone; Kaliningrad exclave; regional economic policy; import-substitution; hybrid structures;
    All these keywords.

    JEL classification:

    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • P33 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - International Trade, Finance, Investment, Relations, and Aid
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bic:journl:v:13:y:2013:i:2:p:111-127. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anna Zasova (email available below). General contact details of provider: https://edirc.repec.org/data/biceplv.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.