Institutional trap of cross-border divergence: the causes of formation and ways of elimination
Journal Title: Регіональна Економіка - Year 2016, Vol 82, Issue 4
Abstract
The problems of transboundary cooperation development between Ukraine and the EU are addressed. Priority focuses are placed on the disproportionate development of the neighbouring border territories on different sides of the border. The main causes for the blocking of convergent processes in the transboundary space between Ukraine and the EU are identified. The presence of objective background for the rise and spread of institutional trap of cross-border divergence is proved. The key effects and the reasons for the establishment of this institutional trap are described. <br>The basic mechanisms of forming of cross-border divergence institutional trap at different stages of European integration of Ukraine are studied. Priority directions of the trap’s negative impact on the various links of cross-border cooperation between Ukraine and the EU are outlined. Potential ways to mitigate these effects in sectoral and functional profiles are determined. Main attention focuses on the importance of the quality of human and social capital to eradicate institutional trap of cross-border divergence. <br>Key areas to overcome the institutional trap of cross-border divergences between the EU and Ukraine are substantiated. Three primary planes of the priority efforts application for government and regional authorities on different sides of the border are allocated. The first plane is considered to be socio-psychological. It covers the traditions and mental attitudes that are associated with the rooting of institutional dysfunctions in cross-border cooperation between Ukraine and the EU. The second plane is the financial-economic one. It concerns economic interests and financial results of participants of the institutional trap of cross-border divergence. The third plane is the plane of organization and management solutions and regulatory policy. It sets the administrative leverage for destruction of institutional trap of cross-border divergence. First of all, it is applied for the development of business activities in the transboundary area between Ukraine and the EU, deregulation of cross-border markets, establishment of modern institutional forms of cross-border interactions, as well as introducing elements of the knowledge economy in near-border EU regions of Ukraine.
Authors and Affiliations
Viktor V. Borshchevskyy, Katarzyna Kucab-Bak
Keywords
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