Opportunities for sustainable economic development in coastal territories of the Baltic Sea Region in the context of digital transformation

The article explores opportunities for the sustainable economic development of coastal territories in the Baltic Sea region (BSR) arising in blue economy sectors in the framework of digital transformation. The study argues that more active commercialisation of territorial resources can facilitate the sustainable economic development of the BSR coastal territories, following digitally-driven innovations. The paper provides an overview of methodological approaches to territorial sustainability. It also assesses the 2009—2018 level of the socio-economic development of the BSR coastal territories, underpins the importance of the blue economy and highlights the role of digital transformation in reaching the UN Sustainable Development Goals (SDGs) in the BSR through digitally-driven innovations. A comparative and problem-targeted statistics analyses show significant differences in the dynamics of socio-economic development in the BSR coastal territories with their GRP per capita being generally lower than the national or macroregional average. A review of literature on sustainable development in the BSR has shown that a more active use of the unique resources of coastal territories along with a technology-driven growth of the blue economy sectors can counterbalance the negative impact of the uneven development of these territories on the progress towards the SDGs in the BSR. Increasing the competitiveness of the BSR coastal territories requires investment in digital solutions in the blue economy sectors and building communication infrastructure. The review of key innovations in the blue economy sectors shows that their implementation gives impetus to other industries by reducing costs, creating new jobs, and improving the quality of products and services.

THE POPULATION OF THE KALININGRAD REGION AND THE DIGITAL ECONOMY: A SOCIOLOGICAL ANALYSIS

Since 2019, the Kaliningrad Region has run a regional programme for digital transformation as part of the national initiative The Digital Economy of the Russian Federation. The programme seeks to improve the quality of life by creating information infrastructure and streamlining public administration. The regional Ministry of Digital Development has presented a report on programme implementation, which placed emphasis on economic performance. The study employed the questionnaire survey method to carry out a sociological analysis of the regional population as a participant in digital transformation. Quota sampling was used to select 384 respondents. Slightly over a half of the population had a positive attitude to digitalisation, and about 20 per cent believed that the digital economy led to the degradation of society. The development of a high-tech economy was named the main advantage of digitalisation and proliferation of digital surveillance, its distinct disadvantage. Kaliningraders reported heavy use of digital technology. Yet, the low indices of digital literacy and personal information protection raise concerns. The findings, which supplement the regional digitalisation report with sociological data, may help in planning and delivering activities within the regional digital transformation programme.

SPATIAL DIFFUSION OF ASIAN DIRECT INVESTMENTS IN THE NORTHERN EUROPEAN EU COUNTRIES

The first publications on the spatial diffusion of foreign direct investment (FDI) appeared in the 1970s-1990s. Since then, many of their provisions have been repeatedly criticized as outdated and inconsistent with the empirical evidence of the current stage of globalisation. Previously, only examples of ‘newcomers’ to internationalisation were used to illustrate distinct phases in the expansion of transnational companies and their effort to first establish themselves in major economic centres, as the factor of gradually growing awareness of potential investors began to play an important role. This article aims to show the persistent character of FDI spatial diffusion patterns and their correlation with the existing hierarchy of cities. In our research, we used the example of Asian companies working in the Baltic countries, Finland, Sweden and Denmark, newcomers to internationalisation, not affected by the ‘neighbourhood effect’, and contrasted them with Western European investors. We confirmed the validity of the hierarchical wave model of the FDI spatial diffusion with the dominance of metropolitan urban agglomerations. It was also found that mergers and acquisitions are dominant forms of FDI in developed countries. Their ascendancy leads both to a distortion of the geographical pattern of subsidiaries networks of investor companies and to the intention of investors to sell their assets in provinces and move their head offices closer to capital cities. Consequently, there is a simplification of the structure of businesses, which is typical of the earlier stages of the FDI spatial diffusion.

THE EFFECT OF GEOGRAPHICAL POSITION AND EMPLOYMENT FLUCTUATIONS ON RURAL SETTLEMENT TRENDS

Structural changes in the economy and spatial and inter-settlement differences in living standards and quality of life lead to fundamental alterations in the national settlement system. Settlement polarisation is gathering momentum, along with the movement of rural population from Russia’s east and north to its southern and metropolitan regions. These processes benefit urban agglomerations. Typological differences between regional settlement systems, still poorly understood but essential for strategic and spatial planning, are growing. This article draws on the concept of the geographical demographic situation; it uses official statistics on Russian regions and Kaliningrad municipalities and settlements to explore the connection between rural settlement trends and employment fluctuations caused by structural shifts in Russian regional economies. It is shown how settlement polarisation affects differences in settlement trends of meso- and microdistrict levels. Regions are identified that have a capacity for rural-urban migration and corresponding rural employment structure and trends.

Tourism development in border areas: a benefit or a burden? The case of Karelia

Border regions are expected to benefit from their position when it comes to tourism de­velopment. In this article, I propose a new approach to interpreting the connection between an area’s proximity to the national border and the development of tourism at the municipal level. The aim of this study is to identify the strengths and limitations of borderlands as re­gards the development of tourism in seven municipalities of Karelia. I examine summarised data available from online and other resources, as well as my own observations. Using medi­an values, I rely on the method of content analysis of strategic documents on the development of cross-border municipalities of Karelia. My research focuses on the tourism and recreation potential of borderlands and analyses the development of local tourism infrastructure. I de­scribe the major types of tourism, examine tourist flows, and consider the strategic aspects of tourism at the municipal level. I identify the strengths and limitations of the development of tourism in border areas by comparing the data on border and inland municipalities of Kare­lia and investigate the role of international border crossing points in the development of tou­rism in borderlands.

Institutional approach to assessing the transition to a circular economy: the case of the Kaliningrad region

The article discusses possible reasons for the failure of Russia’s waste management industry reform and highlights the ownership blurring as a factor that may hinder the transition to a circular economy, which has been proposed as one of the outcomes of the reform. This study aims to address possible obstacles to transitioning to a circular economy in the Kaliningrad region. Methodologically, the study uses instruments of new institutional economics: by comparing discrete institutional alternatives for municipal solid waste (MSW) management, the authors propose incentive schemes that will likely stimulate the transition to a circular economy in the region. It is shown that, in Russia, the identification of the holder of the property right to waste is complicated. This can be a hindrance to effective MSW management. Moreover, objects handled by MSW management services may fall into different types, but at the same time, it is possible to transfer objects from one type to another. One of the ways to improve the exclusion of services of MSW utilization is the introduction of incentive tariffs. Low-rise housing in the Kaliningrad region makes it an ideal region for the introduction of such a scheme. When calculating the unsorted waste transport fee, a multiplier can be used to reduce the payment for waste-separating households. This can serve as an additional incentive for overcoming collective action problem in MSW collecting and sorting. To prevent social resistance to such a policy, incentive schemes should be implemented on a voluntary basis.

PORTS OF EASTERN BALTIC AND RUSSIAN TRANSIT POLICY: COMPETITION AND COOPERATION

The ports of the Baltic States have handled Russian cargoes for many years. Thus, there is no apparent need for Russia to reroute all freight flows to domestic ports. Eastern Baltic ports were just recently considered competitors, but the current geopolitical situation has drastically reshaped the framework for regional transport cooperation. Competition and cooperation strategies are often equally acceptable for the ports of the Eastern Baltic. Yet volatility in global commodity markets, the unstable positions of leading exporters and importers, and changes in the economic and political environment call for new strategies and forms of collaboration. This study aims to understand to what degree port authorities in the Eastern Baltic can combine competition and cooperation policies when formulating their development concepts and handling transit cargoes. The article draws on official statistics and Russian and international publications on the theory and practice of transport routing and the functioning of hub infrastructure. The methods of case study and statistical and comparative analysis are adopted to outline the current situation in the ports of the Eastern Baltic and a variety of ways for the ports to attract more cargo flows from Russia. The article tests the hypothesis that Eastern Baltic port authorities should pursue a co-opetition strategy. The study concludes that, in the immediate future, this strategy can be employed only in cases of extraordinary circumstances, for example, at peak loads.

Geography of inbound tourism and transboundary tourism-and-recreation region-building in Sweden

Sweden’s tourism industry stands out for its large contribution to the development of the national economy. The vast size of the country makes it possible to trace differences in incoming tourist flows from neighbouring countries. This circumstance accounts for the novelty of this study, which lies in viewing national tourism geography from the perspective of the theory of transboundary tourism-and-recreation region building. Interregional differences in the structure of incoming tourist flows help identify the country’s cross-border tourism-and-recreation regions and delineate their borders. This research employs statistical and cartographic methods. The incoming tourist flow to Sweden grew steadily until 2020. However, the Covid-19 crisis has led to a drastic reduction in the number of incoming tourists. Based on the 2019 statistics, the findings confirm the existence of a developed transboundary tourism-and-recreation mesoregion that brings together Germany, Denmark, and Sweden. The formation boasts strong tourist links. There are another five cross-border tourism-and-recreation mesoregions: Sweden-Norway-Denmark, Middle Sweden-Norway, Sweden-Norway-Finland, Middle Sweden-Finland, and South Sweden-Finland. The number of tourists visiting cross-border mesoregions indicates the degree of development of the latter.

Media images of Kaliningrad region in the structure of migration attitudes of millennials and the reform generation

The article explores the role of the image of a region created in mass media in the formation of migration attitudes. Attention is drawn to the Kaliningrad region — a Russian exclave, whose population growth is solely due to migration. The purpose of the article is to determine the significance of the key media images of the Kaliningrad region in the decision-making process on the immigration of millennials and the reform generation (Radaev's concept of generations). Publications about the Kaliningrad Region in Russian media (2014—2018) (N =1,913) and semi-structured interviews (N =44) formed the empirical basis of the study. The main research methods are the analysis of publications and in-depth interviews with their subsequent processing using the Atlas.ti software. Five images of the Kaliningrad region constantly present in the Russian information space were identified: a region of international cooperation, a military outpost, an economically and touristically attractive region, and a region with a developing infrastructure. The most significant intergenerational differences were identified in relation to the Kaliningrad region as a military outpost and an economically attractive region. Compared with millennials, the reform generation is more inclined to perceive a military threat from other countries, therefore the security issue was a significant factor when deciding to relocate. Millennials showed greater awareness of what constitutes the image of an economically attractive region. It is concluded that the differences between millennials and the reform generation in assessing the significance of the media images of the Kaliningrad region are largely due to the specifics of migration motives. For millennials, the priority is employment opportunities and career growth whilst for the reform generation, it is finding a comfortable place to live in old age.

THE SPATIAL STRUCTURE OF BALTIC SEA FERRY SERVICES

Ferry services are transport systems whose regular routes link areas separated by water bodies. Sometimes ferries are the only connection between an island and the mainland. In the Baltic Sea, such transport situations are not rare. A typical example is the island of Saaremaa. Ferries are the backbone of cargo and passenger traffic in the Baltic Sea region. This article aims to describe the spatial structure of ferry services in the Baltic Sea. To this end, a statistical database on 101 ferry routes is created and passenger and car traffic on each is calculated using an original methodology, which can be applied in analysing the spatial structure and traffic of ferry services in other regions. Baltic ferries account for over half of all European ferry-borne car and passenger traffic. The Baltic stands out for its unusually long ferry routes, which sustain timber exports. Most cargoes in the region originate from Sweden.