REGIONAL CHAINS OF ADDED VALUE AS A TOOL OF INDUSTRIAL COOPERATION- COMPETITIVENESS

Objectives. The infrastructural aspects of integrated interaction and factors impacting on the efficiency increase of regional participation  in the creation of added value chains on the example of cooperation  between developed and developing countries during the  implementation of joint production projects are considered.

Methods. A factor analysis of the degree of various countries’ involvement into global added value chains is carried out,  taking into account their geographical location, natural resources and openness of markets, as well as the infrastructure, professional knowledge of the workforce, practice of cooperation of  domestic firms with foreign partners and the attractiveness of their investment climate.

Results. An evaluation of the integrated potential of individual countries, which could undertake the functions of  integrators and mediators within the implementation of regional  programmes of social and economic development, is presented. The  growth potential is estimated and the role of global creation chains  of added value (AVC) revealed as a tool for increasing the  competitiveness of national trade policies. It is determined that,  when adopting the latest technologies, companies strive to geographically approximate the placement of the middle links of added value chains to specialised suppliers, “smart” consumers and scientific centres as a means of maintaining innovation continuity.

Conclusion. The countries of the EEU and the CIS have significant potential for developing cooperation in the field of  transition to a model of new economic growth, as well as in the  development and application of regional added value chains. As well  as the extractive sector of the economy of the EEU and CIS  countries, included in the regional added value chains, agriculture, chemical and textile industries, metallurgy, transport  engineering, and services sector have the potential to be key industries.

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