scholarly journals NEO-INDUSTRIAL IMPORT SUBSTITUTION STRATEGY IN UKRAINE

2021 ◽  
Vol 139 (5) ◽  
pp. 4-33
Author(s):  
MAZARAKI Anatoliy ◽  
МЕLNYK Tetiana
Keyword(s):  
Foreign Trade ◽  
Industrial Development ◽  
Structural Changes ◽  
Graphical Representation ◽  
Institutional Environment ◽  
Import Substitution ◽  
Theoretical Work ◽  
World Market ◽  
Domestic Market ◽  
Goods And Services

Background. The high level of the country’s dependence on imports of goods and services leads to significant vulnerability of its economy to market fluctuations, adverse price trends in the world market and threatens the competitiveness of domestic production and exports. The analysis of recent research and publications reveals that the problems of import contribution to the process of commodity saturation of Ukraine’s domestic market, structural changes identification, strategic priorities and institutional transformations in the state implementation of import substitution policy need in-depth study. The aim of this paper is to study implementation possibilities of the strategy of neo-industrial import substitution in the economy of Ukraine. Materials and methods. Modern scientific concepts, theoretical work on development and analysis of internal market functioning, statistical data are theoretical and methodological basis of this paper. Methods of statistical analysis, synthesis, grouping and graphical representation of the results were used to achieve the research purpose and implementation of the tasks. Results. The concept of neo-industrial import substitution is considered. The present state of Ukraine’s domestic market development and foreign trade is analyzed, the determinants of import dependence of Ukraine’s economy are defined. Thus, problematic issues of institutional support for the implementation of neo-industrial import substitution strategy in Ukraine are outlined, the proposals for its realization are made. Conclusion. Thus, we believe thatit is necessary to overcome barriers (organizational, institutional, technological) that hinder the implementation of neo-industrial economy model for realization of neo-industrial import substitution strategy in Ukraine. It provides performance of a set of conditions: the formation of a favorable institutional regime for the development of import-substituting productions, purposeful outing to the institutional trajectory of neo-industrial development, the formation of necessary institutional environment with general economic program development of neo-industrial import substitution. Keywords: foreign trade, import, domestic market, import substitution, import dependence, neo-industrial import substitution, structure of import use.

scholarly journals Import substitution strategies in the global economy: lessons for Russia

2019 ◽  
Vol 80 (4) ◽  
pp. 398-402
Author(s):  
A. Sh. Subhonberdiev ◽  
A. N. Shevchenko
Keyword(s):  
Latin American ◽  
National Economy ◽  
Global Economy ◽  
Structural Changes ◽  
Import Substitution ◽  
World Market ◽  
Domestic Market ◽  
Point Of View ◽  
Industrial Countries ◽  
The World

The world experience of implementation of import substitution strategy is being studied; reveals the essence of the main models; Identify those aspects that will prove useful in modern Russian conditions. The development of import-substituting industries according to the intra-oriented strategy is carried out in order to develop exclusively the domestic market of the country. From the point of view of the national economy, this strategy leads to the preservation of the backlog, primarily in the field of technological and scientific-technical cooperation and prevents the emergence of industries in the economy-locomotives that can ensure the world level of progress. The use of this model of import substitution has become a determining trend in the development of the so-called new industrial countries (NIS).The intra-oriented strategy of import substitution plays a stimulating role in creating a diversified national economy, expanding the production of important goods on its own. The conceptual basis for the implementation of this strategy was the theory of the peripheral economy, developed by a group of Latin American scientists headed by the Executive Secretary of the UN Economic Commission. According to this concept, the demand for products. The use of the designated model of import substitution has become a trend of development of the so-called new industrial countries of Latin America. Another option for the implementation of import substitution policy can be a strategy of foreign-oriented import substitution, which is characterized by the achievement of structural changes in the economy through the replacement of imported components and parts in export products. Implementation of import-substituting policy, according to this model, involves the development of production of national goods on a sufficiently large domestic market, followed by their promotion on the world market.

Foreign Trade of Russia: Barometer Foretells Storm

2016 ◽  
Vol 60 (2) ◽  
pp. 15-25
Author(s):  
V. Obolenskiy
Keyword(s):  
Foreign Trade ◽  
Large Scale ◽  
Manufacturing Industry ◽  
Import Substitution ◽  
Developed Countries ◽  
Scale Production ◽  
Goods And Services ◽  
Effective System ◽  
The Government ◽  
The Developed Countries

The development of Russian foreign trade during the previous five years is analyzed. It is stated that, in terms of value, exports of services and imports of goods and services steadily grew during the first four years of the period under review. Exports of goods also rose during three years, but in 2014 both exports and imports again fell in comparison with the previous year as was the case five years ago. The composition of the Russian exports and imports of goods did not change radically during the previous years. The main items of export are, as always, mineral products, metals and fertilizers. Import is prevailed by foodstuffs, chemicals and heavy engineering equipment. The current situation is featured by the reduction of world oil prices, slump of the domestic economy and war of sanctions with the Western countries. All this substantially impairs the conditions of Russia’s foreign trade activities and inhibits its development in the upcoming years. In the author’s view, the implementation of measures worked out by the government – correction of tariff liabilities before the WTO, redirecting of trade streams from the European to the Asian markets, import substitution and export support – will unlikely improve the situation. Revision of the liabilities before the WTO in the conditions of the decrease of the internal demand and serious devaluation of Ruble is considered as inappropriate and counterproductive. “Asiatic turn” is only capable to compensate to a certain respect the loss of supplies of some food products from Europe, but cannot fully offset the loss of potentialities of the acquisition of modern technologies and equipment from the developed countries. It is doubtful that it will be possible to dramatically cut the import dependence. It is necessary to replace many kinds of foreign goods, but it is impossible to implement a frontal substitution of import in all directions. Excessive stress on the import substitution might lead to the emergence of shortages and poorer availability of some goods at the internal market and, at the worst, to self-isolation and economic autarky. The attempts to build up an effective system of export support might be successful only in the conditions of the establishment of the large-scale production of goods and services which would be comparable with the foreign analogues in respect to the criteria of price and quality. Taking this into consideration the technological renovation of production processes, first of all in the manufacturing industry, and on this basis rising up of the competitiveness of plants and factories are the most important prerequisites for encouraging export activities and formation of the new export specialization of the country.

scholarly journals FEATURES OF THE DEVELOPMENT OF FOREIGN TRADE ACTIVITIES OF THE KURSK REGION

2021 ◽  
Vol 10 (34) ◽  
Author(s):  
M.N NADZHAFOVA ◽  
Keyword(s):  
Foreign Trade ◽  
Negative Impact ◽  
Import Substitution ◽  
World Market ◽  
The Past ◽  
Trade Turnover ◽  
Foreign Trade Activity ◽  
Cis Countries ◽  
Foreign Trade Turnover ◽  
Kursk Region

The development of Russia's foreign trade is facing a number of difficulties caused primarily by the instability of the external environment of the world market and its politicization, which negatively affects all participants in relations. Political tensions in 2014 and subsequent counter-restrictive measures had a negative impact on the development of export-import relations in the regions of the country, the Kursk region was no exception. The region has a significant foreign trade potential in accordance with its industrial and agricultural specialization, in connection with which the study of the features of the current development of foreign trade activity is an urgent area of analysis. In the course of the study, the features of the development of foreign trade activities of the Kursk region in 2014-2019 are considered, the prevailing trends and their causes are identified. It has been established that over the past 6 years, the foreign trade turnover of the Kursk region has varied in waves: the period of decline is due to a change in the political situation in 2014, which led to a significant decline in foreign trade activity in the period 2015-2016. However, by 2017, the pace began to recover, and in 2019 it exceeded the pre-crisis level. Since 2016, the region has a stable positive trade balance, which indicates a more active development of exports than imports and emphasizes the export orientation, as well as the implementation of the import substitution strategy. An assessment in the context of the main foreign trade directions showed that over the past 6 years there has been a structural shift: if earlier the main importing countries were the CIS countries, and the exporters were non-CIS countries, today the overwhelming share of foreign trade operations falls on the far abroad.

Methodical Approach to Assessing the Impact of Investment Activities on Import Substitution in Machine-Building Product Markets

2019 ◽  
pp. 53-62
Author(s):  
Владимир Борисов ◽  
Vladimir Borisov ◽  
Ольга Почукаева ◽  
Olga Pochukaeva
Keyword(s):  
Structural Changes ◽  
Technological Development ◽  
Import Substitution ◽  
Machine Building ◽  
Domestic Market ◽  
Investment Activity ◽  
Building Product ◽  
Increasing Demand ◽  
The Impact ◽  
Engineering Industries

The design of methods helping to assess the impact of investments and innovations on the development of manufacture and the growth of competitiveness in the engineering industries aims at establishing a system of criteria and tools used in forecasting and analytics of the impact from the innovative technological development of machine building on the performance of the real sector of the Russian economy. The developed toolkit helps to quantitatively estimate the development of machine-building commodity markets and anticipate structural changes depending on the effectiveness of investment activity. To measure import substitution in the growing market, the authors offer an indicator quantifying the increasing demand in the domestic market due to the increased output of domestic machinery products taking into account the export trends. This indicator helps to measure competitiveness as the outcome of investment and innovation effectiveness in the engineering industries. Thus, if the increasing demand in the growing market beats out the production growth figures and spurs an increase in the share of imported equipment in the domestic market, this indicates limited production capacities of domestic businesses, poor and uncompetitive manufacturing capacities. If, in the growing market, both indicators show an upward trend, it means that domestic enterprises possess technologies for increased output with technical and operational specifications meeting the global standards.

India's Foreign Trade and Industrial Development

1989 ◽  
Vol 24 (1) ◽  
pp. 107-119
Author(s):  
Subrata Banerjee
Keyword(s):  
Foreign Trade ◽  
Comparative Advantage ◽  
Industrial Development ◽  
Planning Process ◽  
Import Substitution ◽  
Transnational Corporation ◽  
Time Frame ◽  
Reasonable Time Frame ◽  
Priority Needs ◽  
Short Time

THE BASIC strategy of export promotion currently in vogue is import liberalization. The objective is to remove every possible obstacle to the production of goods for export. The logic is that the liberal import of machinery and intermediate products would make production for export less expensive, more profitable and hence easier. Whatever way we might look at it, the major beneficiary of a strategy of import-based export production and industrialization is the transnational corporation. We need a different approach to foreign trade as one of the components of industrial development. Foreign trade must become an integral part of the planning process. The basic principle of imports for industrial development and exports bas to be modified, to ensure that import liberalization meets priority needs of industry, not indigenously available or likely to be developed within a short time. Import substitution has not become irrelevant, however fashionable it might be to say so. In our drive to increase our exports of engineering goods, we should not Jose sight of our traditional exports. In the case of nontraditional goods, the need is to bear in mind comparative advantage and build up such thrust areas as are likely to have a continuing and expanding market over a reasonable time-frame. This is what demands unport substitution in certain well-identified thrust areas, in which we have comparative advantage.

scholarly journals From Import Substitution to Integration into Global Production Networks: The Case of the Indian Automobile Industry

2019 ◽  
Vol 36 (2) ◽  
pp. 72-99
Author(s):  
Prema-chandra Athukorala ◽  
C. Veeramani
Keyword(s):  
Automobile Industry ◽  
Structural Changes ◽  
Economies Of Scale ◽  
Import Substitution ◽  
Domestic Market ◽  
Production Networks ◽  
Global Production Networks ◽  
The Past ◽  
Current State ◽  
The Government

This paper examines the growth trajectory and the current state of the Indian automobile industry, paying attention to factors that underpinned its transition from import substitution to integration into global production networks. Market-conforming policies implemented by the government of India over the past 2 decades, which marked a clear departure from protectionist policies in the past, have been instrumental in transforming the Indian automobile industry in line with ongoing structural changes in the world automobile industry. India has emerged as a significant producer of compact cars within global automobile production networks. Compact cars exported from India have become competitive in the international market because of the economies of scale of producing for a large domestic market and product adaptation to suit domestic market conditions. Interestingly, there are no significant differences in prices of compact cars sold in domestic and foreign markets. This suggests that the hypothesis of “import protection as export promotion” does not hold for Indian automobile exports.

Import substitution in Russia: current state and prospects

2021 ◽  
pp. 324-334
Author(s):  
Evgenij Andreevich Litvinov ◽  
Yuri Anatolievich Savinov ◽  
Evgenia Vadimovna Taranovskaya
Keyword(s):  
Dairy Products ◽  
Import Substitution ◽  
Food Additives ◽  
Food Products ◽  
The United States ◽  
World Market ◽  
Domestic Market ◽  
Short Period ◽  
The World ◽  
National Production

Import substitution is a process of gradual displacement of foreign goods in the domestic market by analogues of domestic production. In Russia, the need to accelerate the development of national production of agricultural raw materials and food products has been discussed since the beginning of the second decade of this century, since the increasing share of foreign goods in the national consumption of products on the domestic market has become a signal of a violation of the country’s food security indicators. The State authorities made the appropriate necessary decisions, which were implemented. This issue became particularly relevant after 2014, when Russia suddenly faced sanctions against it from the United States and its NATO allies. This led to the adoption of the counter-embargo, stimulated the development and implementation of additional eff orts to develop import substitution in our country. In a fairly short period of time, our country has achieved very signifi cant results in increasing its independence from imports, primarily in the food market, in particular in eliminating the shortage of meat and dairy products. The domestic market has become fully secured due to the national production of poultry, pork, many types of vegetables, and confectionery. The national production of beef and dairy products has expanded. This made it possible to signifi cantly reduce the import supply of such goods. The authors consider and analyze the current trends and features of this process. For a number of food products, Russia has become a major exporter on the world market, capturing major positions in the world market of wheat, sunflower oil, fats, a number of other food products, as well as fertilizers. The demand for Russian food products on a large scale is presented by China, the countries of the Middle East, and North Africa. Nevertheless, there are still unresolved problems in the country, which the authors point out. In particular, it is necessary to make eff orts to reduce import supplies of seeds, seedlings, breeding cattle, highly specialized agricultural machines, food equipment, to expand the development or purchase of technologies for processing agricultural products, the production of food additives and other imported components for the processing industry. Of course, there will remain some types of tropical agriculture, which the country will continue to import, since it is impractical to develop their production in Russia for climatic reasons.

scholarly journals Analysis of the State and Trends of Ukraine’s Foreign Trade with the EU

2019 ◽  
pp. 59-68
Author(s):  
Т. M. Bulakh ◽  
О. A. Ivashchenko ◽  
L. O. Plakhotnikova
Keyword(s):  
Foreign Trade ◽  
Import Substitution ◽  
Trade Agreement ◽  
The State ◽  
The European Union ◽  
Trade Relations ◽  
Eu Member States ◽  
Goods And Services ◽  
Negative Balance ◽  
The Eu

Presently, Ukraine is highly integrated into the global economic area and maintains foreign trade relations with more than 200 countries. The European Union (EU) is one of the most important foreign trade partners of Ukraine. Therefore, the analysis of Ukraine’s foreign trade is important for taking effective management decisions and promoting reasonable changes in the economic policy. The article analyzes the state and trends of Ukraine’s foreign trade with the EU. Its features and dynamics are revealed. The changes in the structure of exports and imports of Ukraine after the signing of the Free Trade Agreement are as follows: export values reaching the pre-crisis level of 2014; the sustained dominance of agricultural and food industry products; the commodity structure of exports could be diversified; imports of goods to Ukraine from the EU in 2012–2017 decreased at a slower pace than the total imports of goods to Ukraine; after a negative trend in 2012–2015, the imports increased by 3658.5 million USD in 2017, signaling that the imports to Ukraine from the EU were recovering at a faster pace than the Ukrainian exports to the EU; the balance of foreign trade in goods between Ukraine and the EU for the period of the study was negative. Measures to improve the development of foreign trade of Ukraine in the context of deepening European integration processes are proposed: to increase the support for national producers;  to intensify export cooperation with the EU member states with which Ukraine has a negative balance; to attract exporters from non-EU countries to locate production facilities on the territory of Ukraine with the prospects of their exports to European markets; to introduce uniform standards of certification and standardization of products in Ukraine; to develop a strategy to increase exports of nationally produced goods and services to EU markets and reduce imports to Ukraine; to intensify cooperation with the EU on issues of import substitution in Ukraine.

On the strategy for industrial development of Russia

2017 ◽  
pp. 45-59 ◽  
Author(s):  
V. Osmakov ◽  
A. Kalinin
Keyword(s):  
Foreign Trade ◽  
Development Strategy ◽  
Goal Setting ◽  
Industrial Policy ◽  
Industrial Development ◽  
Social Policies ◽  
Strategic Decisions ◽  
Territorial Planning

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.

Globalisation and Equity Issues in Post-socialist Transition Economies

2004 ◽  
Vol 54 (3) ◽  
pp. 273-296
Author(s):  
G. W. Kolodko
Keyword(s):  
Transition Economies ◽  
World Market ◽  
Early Years ◽  
Standard Of Living ◽  
Social Constraints ◽  
Significant Shift ◽  
Equity Issues ◽  
Goods And Services ◽  
The Rich

Equity issues in policymaking are difficult to resolve because they are linked not only to the economic situation but also to social constraints and political conflicts within a country. This is even more true in the case of post-socialist economies during their transition to a market system in the era of globalisation. The historical and irreversible process of liberalisation and integration of capital, goods and services, and labour markets into one world market, as well as the gradual construction of new institutions and the process of privatisation cause a significant shift in the income pattern of post-socialist emerging markets. Contrary to expectations, inequality increases affecting the standard of living and long-term growth. While globalisation contributes to the long-term acceleration of economic growth and offers a chance for many countries and regions to catch up with more advanced economies, it results in growing inequality both between the countries and within them. On average, the standard of living increases, but so does the gap between the rich and the poor. Therefore, equality issues should always be of concern to policymakers, especially in the early years of the change of regime in post-socialist transition economies.

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