5th NORDIC-BALTIC CONFERENCE IN REGIONAL SCIENCE
GLOBAL-LOCAL INTERPLAY IN THE BALTIC SEA REGION
Pärnu, Estonia, October 1-4, 1998

Raigo Ernits
Eurofaculty, University of Tartu
Lossi 3, EE2400, Tartu, Estonia
Tel.: +37 2746 5645    Fax: +37 2744 1290
E-mail: raigoe@cie.ut.ee

In this paper is observed the stability conditions of economic environment in one of the most problematic districts of Estonia - in mono-functional (one-enterprise) industrial settlements. It is researched, to what extent guarantee production systems existing in these settlements the certainty of the market and to what extent create present relations of production (both relations with external partners and relations between internal subjects) new development assumptions in the future. The main conclusion is that in the conditions of the transition economy may present traditions of production and the production systems based on strong hierarchy be even a factor restricting the development.

In the first part will be given a short overview of Estonian mono-functional settlements, in second part will be utilizing the paradigm of (New) Institutional Economics analyzed the relations between specialty of production and the stability of production system and observed these relationships of some production system. The third part bases on empirical studies and there are observed the relationships in Estonian mono-functional settlements and the market positions of different subjects and the reasons for decrease and success in different settlements.