Comment on “How COVID ‐19 Medical Supply Shortages Led to Extraordinary Trade and Industrial Policy”

The article considers the problems of industrial policy and, accordingly, the industrial development strategy from the standpoint of the challenges facing the industry, the conditions for the adoption of strategic decisions and possible answers - the key directions of state activities. The main principles and directions are analyzed: investment, foreign trade, technological policies, certain aspects of territorial planning, state corporate and social policies. Proposals on the prospective goal-setting and possible results of industrial policy have been formulated.

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Competition Policy under Economic Crisis

Voprosy Ekonomiki ◽

10.32609/0042-8736-2009-3-54-69 ◽

2009 ◽

pp. 54-69 ◽

Cited By ~ 1

Author(s):

A. Shastitko ◽

S. Avdasheva ◽

S. Golovanova

Keyword(s):

Division Of Labor ◽

Economic Crisis ◽

Industrial Policy ◽

Competition Policy ◽

Transition Economy ◽

Economic Recession ◽

Price Rigidity ◽

Key Factor ◽

Policy Measures ◽

The Impact

The analysis of competition policy under economic crisis is motivated by the fact that competition is a key factor for the level of productivity. The latter, in its turn, influences the scope and length of economic recession. In many Russian markets buyers' gains decline because of the weakness of competition, since suppliers are reluctant to cut prices in spite of the decreasing demand. Data on prices in Russia and abroad in the second half of 2008 show asymmetric price rigidity. At least two questions are important under economic crisis: the 'division of labor' between pro-active and protective tools of competition policy and the impact of anti-crisis policy on competition. Protective competition policy is insufficient in transition economy, especially in the days of crisis it should be supplemented with the well-designed industrial policy measures which do not contradict the goals of competition. The preferable tools of anti-crisis policy are also those that do not restrain competition.

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