Estimation Of Institutional Factor’s Influence On Regional Foreign Economic Activity

Analyzed displays and information base

Following displays of the factor of FEA institutional assistance, having place in a region’s scale, were analyzed:

• organization of international events with economic basis: exhibitions, visits (receptions) of business missions, interstate meetings, sport events;

• consultant and complex support for enterprises’ FEA;

• information work and work for improving the region’s image;

• forming the infrastructure of production development, furthering FEA; organizing the training the staff potential related to FEA;

• concluding by region the international agreements about economic partnership (isn’t considered in the article because of volume limitation).

The region analyzed was Sverdlovsk region, actively implementing the FEA, one of the Russian regions, where Regional export standard will be applied. By necessity the other regions’ experience was considered.

Research’s information base was: region’s strategy of foreign economic development; reports of Sverdlovsk regional Ministry of international and foreign economic relations; press releases about results of activity of Center of export support of Sverdlovsk regional fund of entrepreneurship support and regional Ural chamber of commerce and industry; press releases about the international events of economic character conducted and other assistance displays; statistics of region’s international trade; official web sites of other FEA support’s institutions.

Methodical provision of analysis of final expression of effect

The methods of statistical (quantitative) and qualitative analysis were applied in the research. The indicators of final and “initial” (intermediate) expression of effect of influence of FEA institutional factor were analyzed. In part of analysis of final expression of effect, namely in part of economic-statistical estimation, the analysis was carried out by indicators of final efficiency of support measures, i.e. analysis on following indicators:

• dynamic series (analysis of dynamic series) on indicators of the international exhibition’s effect (number of treaties concluded, region’s export to lands – partners by the organizing etc.)

• number of the export contracts concluded by other seconding forms;

• number of the foreign economic projects got organizational support (passports’ drawing up);

• number of the projects with international investments initiated by helping institutions;

• indicators of creation of the infrastructure furthering the FEA – exhibition, transport, hotel, sport infrastructure, – as result of preparation to international events of economic character;

• growth of economy’s income on background of organizing the international sport event (including through services’ export).

Qualitative analysis, in process of data search, supposed the use of facts’ analysis, content analysis of strategy of region’s foreign economic development and of press releases about conducting the international events and about other support. Also, the comparative analysis was used (by comparing the large projects of foreign production localization in regions with the presence of SEZ or industrial parks in the place of localization). Qualitative analysis was related to following aspects:

• branch structure (of region’s export to lands – exhibition partners; of the bargains struck as result of exhibition or of other backing from FEA furthering institutions);

• forming the cluster, export oriented or with foreign investments, by support of SEZ, techno-parks, agencies, funds.

Methodical provision of analysis of “initial” expression of effect

Analysis of “initial” expression of effect was considered as addition to the final effect analysis. “Initial” expression of effect was estimated through a number, scales and qualitative parameters of furthering measures organized, i.e. it doesn’t reflect final efficiency, but reflects the efficiency intermediately.

Quantitative analysis here supposed the estimation of following indicators: quantitative presence of enterprises on international exchanges of contacts and exhibitions in region, number of exhibits on exhibitions, quantitative participation of regional enterprises in national export catalogue; number of the international events organized by regional FEA support institutions; number of the specialists being trained in region in FEA sphere and in branches with promising for regional FEA development.

Qualitative analysis was related to following aspects:

• technological level of the products presented at international exhibitions; branch and geographical specifics of exhibition guests;

• organization within exhibitions of “active” formats of participants’ interaction;

• presence at events of helping institutions’ representatives as guarantors and consultants;

• comfortability of use of consultant seconding from FEA support institutions;

• presenting in regional document of FEA stimulation the directions of development and furthering.

Research sequence and process

On example of Sverdlovsk region, the analysis was carried out of the effects of displays of FEA institutional factor:

In part of analysis of the effect of international exhibitions’ organization the dynamic series were studied of indicators of the international industrial exhibition “Innoprom” being organized every year in the region by the Ministry of industry and commerce Russia’s, by regional authorities’ participation (table 01 ).

The dynamics was studied of Sverdlovsk export to the states at most represented at “Innoprom” (table 02 ). The qualitative (branch) and quantitative analysis of this export’s dynamics was carried out. It has shown, that export, for example, of some machinery to the lands – organizational partners grew afterwards. So, the export 2016 grew to China of mechanical equipment in 2.6 times, of electrical – in 6.4 times (Sverdlovsk machinery and metal-processing production was shown to Chinese guests 2015), to India – of electrical in 2 times; 2017 to India – of electrical in 1.6 times, to Japan – of mechanical in 150 times; 2018 to Republic of Korea – of mechanical in 2.7 times. The analysis shows growth of export, including of machinery, also to the countries, with which business forums were organized at “Innoprom” (calculated by official public data of the Federal Customs Service of Russia). Also, the qualitative analysis of initial expression of the exhibition effect was made.

bThis’s only from the country – organizational partner: 2015 – China, 2016 – India, 2017 – Japan, 2018 – Republic of Korea.

Source: official public releases of “Innoprom” press center.

Analysis of visits of region’s business delegations abroad, where regional authorities, funds, chamber of commerce and industry work, has shown, that they’re used by large enterprises’ number (initial expression of effect). So, in the business delegations’ visits abroad 2019 by assistance of Sverdlovsk Government participated 130 enterprises; the authorities carried out 12 international negotiations about Sverdlovsk export increasing [by public data of the Sverdlovsk Ministry of international and foreign economic relations (the MIFER)]. The number of business missions’ organized by Ural chamber of commerce and industry and of enterprises-participants 2019 has grown to 2016. The Center of export support of Sverdlovsk regional fund of entrepreneurship support (the CES) has organized during the not full 2019 visiting the 69 exhibitions, including by business delegations, what have furthered 55 export contracts’ conclusion, including with products of manufacturing industry (as medical equipment, aluminum, clothes etc.) (by public data of the CES).

Analysis of indicators of the effect of preparation to conducting the interstate summits in the region has shown the effect presence. So, to the summits of Shanghai cooperation organization and BRICS 2009 in Ekaterinburg (Sverdlovsk region) the modern terminal complex in airport was built, road to the city was broadened and train was organized. As result, passengers’ flow has got multiple growth, what in part of foreign passengers reflects an increase of export of transport and other services. The opening the several new hotels was planned, 340 buildings were repaired. To the same summits 2015 in Ufa (in other Ural region) the new airport’s international terminal was built (capacity was grown in 4 times; airport’s passengers’ flow was grown 2013-2017 on 50-60%); congress hall was modernized, 6 hotels were built and 40 repaired; roads, buildings’ facades, parks were equipped. All the created remained demanded (by public press release). This provides a factor of FEA’s future activation.

Analysis of indicator of the effect of international sport events’ organization by authorities has shown, that, for example, for carrying out the football championship 2018 the stadiums were reconstructed or built in a number of Russian cities, including Ekaterinburg. To the organizational committee, as result of the organizing, small and medium business’ earnings have grown on 0.8 trillion of Ruble, first of all, in construction and tourism, which product was requited including through the services’ export. During 5 years the infrastructure can add to GDP increase up to 0.2 trillion of Ruble.

Effect for the region’s FEA of institutional factor in part of consultant and complex backing for enterprises was estimated by data about indicators of a number of support kinds:

education: so, during the not full 2019 the CES’s educational services were used by more than 300 enterprises, 12 seminars, forums and accelerators were conducted (“initial” expression of effect), what has furthered conclusion of 11 contracts about export. The advising services were used by 51 enterprises, 96 consultations were organized, by which help 22 export treaties were concluded (by public data of the CES);

getting the organizational support for foreign economic projects of enterprises: so, 2016, on the April, the seconding by the MIFER was given by drawing up the 37 passports of such projects of enterprises (including the 20 ratified by Ministry of economic development Russia’s), and on the autumn – there were already 47 passports (30 were ratified) (by public data of the MIFER);

support in reception of foreign business delegations (so, by such furthering of the CES during the not full 2019 the 3 export contracts were concluded), in search for potential partners (the CES has found 147 foreign partners for 32 enterprises, by this support 5 bargains of export were struck), in placing at international trade platforms (such CES’s service was used by 55 enterprises; by the help 1 export contract was concluded), in web sites’ translation and promotion (the CES has given the service to 26 enterprises, what furthered conclusion of 2 contracts of export). Among the goods set on export: medical equipment, tourism services, saw-timber, foodstuffs etc. Analysis of the CES’s activity gives one else quantitative effect’s indicator – the number of the enterprises first coming to export. So, among the companies concluded during the not full 2019 export treaties by the CES’s support, one third carried out export first. In all, during the whole 2019, with the CES’s seconding, 90 companies have concluded 190 contracts on export (by public data of the CES).

The indicators of the effect of information work of support institutions and work for improving the region’s image were analyzed. So, within the MIFER’s work on the Plan of attracting the investments into the region’s economy for 2015-2017, for example 2015 a number of investment projects was initiated: in sphere of common production of medical goods (on territory of techno-park), metal-processing equipment, foundation of common business park etc. (by public data of the MIFER). The region’s authorities 2019 conducted 5 consultations for foreign companies on the questions of common enterprises’ foundation in the region. As result of one of them the equipment export of Sverdlovsk enterprises was agreed. The agreements of intentions between the region’s SEZ and two foreign enterprises were concluded about foundation of productions of high processing degree, and the negotiations were carried out with one foreign company else about localization; the agreement was concluded between one Sverdlovsk and one foreign company about common enterprise’s foundation. This related to manufacturing industry. Also, 2019 the region’s authorities made 20 international presentations of regional potential. Regional export potential (including the concrete companies) was presented on 8 foreign events, and in a number of cases this initiated business links’ establishing. The regional FEA portal “Made in Ural” supposed by the Regional export standard was created on 5 languages, presenting 2 thousand of products of 480 export-oriented enterprises. Number and geography of its visitors grows (by public data of the MIFER).

The indicators of the effect of forming the institutions of infrastructure of production intensification were analyzed. So, in the Sverdlovsk SEZ “Titanium valley” (founded 2010 by federal law) to the key residents belong “VSMPO-AVISMA” (exporter, one of the leading global producers of titanium products), “Ural Boeing Manufacturing” etc. Of the 18 SEZ residents 4 are the foreign. SEZ production belongs to metallurgy, production of transport and construction materials etc. As an example of Sverdlovsk industrial park can be mentioned chemical park “Tagil” (since 2015): its residents produce synthetic resins and plastics, metal constructions and boring equipment etc., a common Russian-Austrian enterprise functions.

The indicators of the effect of the institution of organization of training the the staff potential related to FEA were analyzed. In particular, in part of training the FEA specialists, the MIFER trains annually specialists within realization of the State plan of administrative staff training: 1998-2019 were trained 2.5 thousand of managers (by public data of the MIFER). Training in FEA sphere will be conducted also at federal state universities (chairs at the Ural federal and Ural state economic university). In part of training the specialists in the branches, where FEA strengthening is promising, the analysis shows, that in Sverdlovsk region’s case in the Strategy of foreign economic links’ development till 2035 especial value will be mentioned of export and import of advanced equipment for mechanical engineering. Mechanical engineering’s specialists will be trained, for example, by the Ural federal university [number of corresponding students is more than 1.2 thousand (by public data of the university).