Home  Journals  Economic Analysis: Theory and Practice  38(389) - 2014 October

Defining priorities and investment support for the Russian economy development

Available online: 12 October 2014

Subject Heading: STRATEGY OF ECONOMIC ADVANCEMENT

JEL Classification: 

Pages: 2-11

At present, defining the priorities of economic development of Russia is relevant and extremely challenging. The policy documents interpret priorities as both economic activities and basic industries. The aim of this paper is to identify primary sectors of economy, to analyze them and to list incentives, which the State should offer to encourage investment and innovation activity of companies operating in basic sectors of economy. To recognize an industry as a primary one, we propose using an indicator of significance of economic activities (industries) constituting an integrated complex index, which takes into account the nine criteria of significance of an industry (a primary industry). As a result, we have identified the industries, which are global leaders, have the potential of world leadership, substitute import and are socially important. On the basis of the conducted analysis of the selected groups of industries, we have come to conclusion that manufacturing industries are the most important for all groups of basic industries. Mining industry has every reason to possess the potential of a world leader; however, socially important industries (agriculture, health and education) are sufficiently underdeveloped. In general, the structure of economic activities demonstrates that Russia has not yet reached the postindustrial society level. We have proposed priority areas of the Russian investment policy that include: proper definition of priorities of national resources; transfer to the export of highly processed products; introduction of tax preferences for high-tech sectors of economy; building vertically integrated structures that interact in terms of priorities of economic development; building cluster models of economy development.

Keywords: basic, primary, industry, economy, development, economics, investment priorities, cluster model

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