Economic Security within the Limits of Economic Complexity

Abstract

Introduction. The issues of ensuring economic security of regions (especially of those with a specific situation) taking into account the influence of economic complexity are a novel research problem. The development of regions, primarily the border ones, is determined by two divergent processes: growing economic complexity, determined by external constraints or opportunities, and economic security, associated with the internal potential and resources of the region. Based on the study conducted, the article reveals the features of the interconnection between economic security and economic complexity, the latter determining the innovative and technological limitations to the growth and development of territories. Materials and Methods. The author has conducted semantic analysis and thematic clustering of economic security using data from bibliographic and reference databases of publications in English (Web of Science) and in Russian (eLIBRARY.RU). The assessment of economic complexity was based on the conducted analysis of the UN Comtrade foreign trade statistics, that of economic security – on the official data published by Rosstat. Results. The author has identified the terminological connection between economic security and economic complexity, and has provided a theoretical representation of the relations and interdependence of these categories. The paper presents the methodological provisions for studying the economic security of border regions, taking into consideration the possibilities for increasing their economic complexity. Discussion and Conclusion. In the context of systemic constraints in the development of the region, economic security is largely determined by both the available internal potential and resources, and the possibilities of their use. However, the region gains new capabilities with the increase in its economic complexity, the latter also limiting its economic security. In fact, the choice of key areas for the structural transformation of the region’s economy depends on whether priority is given to maintaining the level of economic security or increasing economic complexity. The mechanism and criteria discussed in this paper, as well as the methodological provisions of such a choice, contribute to further development of the theory of economic security and economic complexity at the regional level and are of practical importance for regional governance.

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