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Regional Economics: Theory and Practice
 

Factors of the export raw material industry development in a region

Vol. 13, Iss. 3, JANUARY 2015

PDF  Article PDF Version

Available online: 29 January 2015

Subject Heading: DEVELOPMENT STRATEGY

JEL Classification: 

Pages: 26-34

Yun S.E. Economic Research Institute, Far Eastern Branch of Russian Academy of Sciences, Khabarovsk, Russian Federation
yunsergey@gmail.com

Importance For several years, the Khabarovsk Territory authorities has been carrying out a policy of encouraging the wood conversion industry, which implies changing the patterns and volume of investment in the industry. It was assumed that this policy would change the organization of production and enable to convert export towards products with high added value. However, the policy was not implemented, and some questions arose: why did the "investment pumping" fail, and what factors have an impact on the export raw material industry development?
     Objectives The research aims to study the development factors of the timber processing complex and their impact on its structural reorganization.
     Methods The research was based on the analysis of problems of the timber processing industry development. The article highlighted three factors of the raw material export development: natural resources, external demand and institutional environment. I studied these factors in the case study of the timber processing complex of the Khabarovsk Territory. The findings showed that these factors to the full extent affect the functioning of the timber processing complex. If the structural reorganization ignores them, the region's economy faces decline in export and production, and thus the expected development of timber processing does not occur.
     Results My findings show that for raw material orientation of the timber industry the availability of natural resources and external demand play the key role, while for raw material processing development institutional conditions (tariff policy, investment incentives, legislation) are extremely important. I found that the existing interrelation of the factors distorts the strength and focus of their impact on the complex, which results in mismatch of expected and actual parameters of its development.
     Conclusions and Relevance I address the findings to experts in the sphere of territorial development management. It is also possible to use them in training.

Keywords: region, forest industry complex, regional investment, Khabarovsk Territory, timber processing, export, unprocessed timber, development factors, natural resources, institutional environment, external demand

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