Advances in Economics, Business and Management Research, volume 83 2nd International Scientific Conference on ‘Competitive, Sustainable and Safe Development of the Regional Economy’ (CSSDRE 2019) Territorial development of the Republic of Karelia in the context of the theory of circular cumulative causation Nikolai Vladimirovich Levkin Sergey Sergeevich Vereshko Petrozavodsk State University Petrozavodsk State University Institute of Economics and Law Institute of Economics and Law Petrozavodsk, Russia Petrozavodsk, Russia
[email protected] [email protected] Abstract — It is impossible to imagine the development of modern spatial economy without taking into account the effect of I. INTRODUCTION circular cumulative causation, when individual territories have In today's globalizing world, the contradictions of social an impact on other territories and this relationship is nonlinear. and economic development are acute manifested due to the The Republic of Karelia is a region composed of such uneven distribution of labor, organizational, financial heterogeneous territories. The polarization of the economic space resources and natural resources. In accordance with the together with the effect of circular cumulative causation National Security Strategy of the Russian Federation to ensure multiplies the contrasts between the leading territories and the territories-outsiders, which leads to negative social selection: the economic security of the country, the main effort should be displacement vector of the most skilled workforce flowing from aimed