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Economic Analysis: Theory and Practice
 

Policy of import substitution in old industrial regions

Vol. 14, Iss. 42, NOVEMBER 2015

PDF  Article PDF Version

Received: 10 June 2015

Received in revised form: 7 August 2015

Accepted: 30 September 2015

Available online: 10 November 2015

Subject Heading: ANALYSIS OF COMPETITIVE ABILITY

JEL Classification: 

Pages: 2-13

Sukhovei A.F. Institute of Economics, Ural Branch of Russian Academy of Sciences, Yekaterinburg, Russian Federation
alla_suhovey@list.ru

Golova I.M. Institute of Economics, Ural Branch of Russian Academy of Sciences, Yekaterinburg, Russian Federation
irina_golova@mail.ru

Importance Import substitution is one of the most important conditions to ensure the technical and technological safety of Russia under the foreign policy aggravation and imposed economic sanctions against Russia. It is of extremely important for old industrial regions, where the main production and innovative capabilities of the country are concentrated.
     Objectives The study aims to describe the nature of the import substitution policy and show the role of old industrial regions in its implementation.
     Methods We apply analytical, economic, statistical, and sociological methods that allow performing a reasonable analysis of the productive and innovative capacity of old industrial regions to substantiate the priorities of the import substitution strategy.
     Results We provide the results of calculations for the regions of the Ural Federal District, formulate criteria for selecting the priorities of the import substitution policy of old industrial regions. The study presents the tools to analyze and select the priorities for mobilizing the innovative possibilities of old industrial regions. We tested the findings using a case study of the Sverdlovsk oblast.
     Conclusions and Relevance We conclude that despite the existing problems, the old industrial regions of Russia have significant potential for import substitution. Its realization requires the selective State policy considering the specifics of production and innovation capacities of certain territories, as well as their needs in the recovery of the economy. This approach provides a basis for developing the opportunities that are built in the import substitution policy to stimulate the neo-industrialization processes.

Keywords: import substitution, State innovation policy, modernization, socio-economic system

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