Integration of an enclave into the international economy: changing patterns of Kaliningrad's economic specialisation

The geographical situation of the Russian enclave led to its strong exposure to the destabilising effects of post-communist economic transformation. A dramatic trade opening has occurred, and regional trade and production has undergone profound changes. The major phenomenon relative to the economic development of Kaliningrad is its enclavity. Dynamic and sustainable economic development may be reached on the way of minimisation of enclave-specific negative factors (high transaction costs, vulnerability, peripherality, small size) and valorisation of enclave-specific opportunities (proximity to the EU market and the role of an intermediary in the EU?Russian trade flows).