MECHANISM FOR CROSS-BORDER MANAGEMENT OF REGIONAL ECONOMY
In modern inter-regional division of labor conditions and intensification of relations between countries the new model of regional economic system is being established. It bases on inter-regional cross-border economic relations between economic units from different countries. Regional integration processes claim both federal and regional management from government structures of Russia. In case of cross-border economic relations it will be done both by the supranational structures and conclusion between the sides. In modern conditions the framework of legal base of mutual cooperation between Russia and Abkhazia is establishing and harmonizing. The mechanism of direct influence to regional governing bodies can include the provision of various subsides. Foreign trade regulation is one of the indirect instruments of government influence to economic activities. There are export subsidizing, changing customs tariffs, promotion tax benefits to foreign investors etc. In order to facilitate efficient interaction to economic structures functioning in regional economic system of Russia and Abkhazia it is proposed organizational structure of the supranational authority. The main objectives principles and function of this body will be determined. It can facilitate the transformation of the region to the major integration macro-region.