DEVELOPMENT FACTORS OF EXPORT POTENTIAL OF THE REGION: CAPABILITIES IN MINERALS AND INFRASTRUCTURE SECTOR.

Author:Abdimomynova, Almakul
Position:Report
 
FREE EXCERPT

INTRODUCTION

Export potential is a complex phenomenon that includes both the natural resource base and regional economy situation providing the region with research and technology advancement, technological, industrial and socio-cultural development to achieve sustainable export processing rates and high standard of living considering current and projected market conditions (Arupov, 2002; Prince & Fitton, 2016; Fingerman et al., 2017). Regional development becomes particularly important due to globalization, when state's economy efficiency and competitiveness is dependent on the economic development of the region (Kovalenko, Polushkina & Yakimova, 2017).

Currently, Export Development Program provided basic provisions for export potential development and export state backing (Satubaldin, 1998; Madiyarova, 2004; Abbas & Waheed, 2015). In this regard, regions are less active-many of them still have not formed the basic export structure, without which potential use is impossible. This is largely determined by low competitiveness of the regional economy, the lack of experience on the international market, the lack of export support.

The study of export potential of regional economy, which is the economy subsystem, organized based on industrial-territorial division of labor, is conduct by taking into account the impact of a number of external and internal factors (Novikov, 1989; Maslennikov, 2008; Aslund, 2010).

Therefore, the following points must be studied in the research on region's export potential:

  1. Secure efficient and sustainable region's economic system development within global economic relations and determine export development priorities to redevelop regional economy faster (Cornel, 2017; Ibrayeva et al., 2017; Krichak et al., 2015);

  2. Conduct related analysis of inter-regional and foreign economic relations with export processing possibilities (Jordaan, 2015; Pal, 2015; An, Hu & Tan, 2017);

  3. Determine macroeconomic effectiveness of export-oriented production at the level of economic sector and priorities to raise it (Veselovsky et al., 2015; Madzinova et al., 2014).

    Currently, Kazakhstan regions are under pressure of internal and external factors. The global market demands only certain types of raw materials, mainly fuel and energy resources (Schnieper, 1991; Madiyarova, 2004; Tekenov, 2004). The old method for regional planning does not work and the new one relevant to market economy is little known (Schnieper, 1991).

    The purpose of the study is to study the nature of export potential, its formation and development.

    LITERATURE REVIEW

    It is necessary also to allocate socio-economic factors that influence foreign economic relations of the region (Kadochnikov & Fedyunina, 2013; Deng, Lu & Xiao, 2013; Parr, 2014).

  4. Level of region's infrastructure development;

  5. Climate and natural features;

  6. Resource potential of the region;

  7. Ecological situation;

  8. Region's role in state economic stability;

  9. Social characteristics of the region.

    That is why we shall consider the category of "region" first. The markets that define territorial and administrative units were formed on the territory of the republic. Therefore, territorial and administrative predetermination led to the understanding of many spatial formations, including the region (Qin, Zheng & Zhang, 2013; Riser, Scherer & Strauf, 2013; Parr, 2014). The region can be regarded as a "separate part of the country due to public (territorial) division of labor, characterized by production of certain goods and services, community and specific nature of reproduction process, integrated and holistic economy; managerial bodies that solve regional problems" (Arzhenovskiy, 2011).

    According to Elkin, export potential of the region will consist of combined export potential of enterprises selling goods (service providers) on specific foreign markets (Elkin, 2008).

    In general, export potential development is a core of economic promotion model in the region. Previously, economic potential of territorial systems depended on their production capabilities-capability of producing a large assortment of goods in the region. Currently, it depends on organization capability of the region-reactive production of new goods and services with effective use of means of cooperation and production capability of other countries and territories (Qin, Zheng & Zhang, 2013; Christopoulos, 2014). In this context, Zahmatov has an interest suggestion, according to which "the basis for export potential are not natural resources, but organizational and political factors and incentives for active individuals (employer and employee)" (Zahmatov, 1984).

    Based on the above-considered opinions, we can consider export potential of the region as an integral part of country's export potential influenced by a variety of economic, geographic, climate and historical factors, as well as factors of technological and innovation nature. Therefore, region's export potential features are determined by socio-economic needs and multi-potential.

    METHOD AND RESULTS

    The theoretical and methodological basis of the research is the theory of regional economy sustainable development under various business forms and integration processes of the economy. Research validity and reliability are achieved by means of general scientific methods of analysis. The article provides generalized national and international experience on the issue of research. We used abstract-logical, analytical, economic and statistical methods.

    The concept of export potential is complex in terms of definition, as is combines interpretation of such economic categories as financial potential, industrial resources, market potential and competitiveness that are contributing to its development (Figure 1).

    Factors of region's export potential formation can affect the region both separately and cumulatively (Table 1).

    RESULTS

    Kyzylorda region is an agrarian-industrial region. Rich natural resource potential of the region is a competitive advantage. However, there is a significant imbalance in production structure-predominance of the mining industry (94%) over manufacturing industry (6%). This situation places the region's economy in a vulnerable situation of varied prices for several kinds of export mineral resources, as well as of several oil and gas production companies.

    Meanwhile, the export potential has to be analyzed. As previously mentioned, potential is a set of natural, industrial, scientific and technical, innovation-related and labor resources of the region, which can be used to develop international economic relations with near and far...

To continue reading

FREE SIGN UP