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Economic Analysis: Theory and Practice
 

Analysis of Russian machine-building enterprises: the need for modernization

Vol. 15, Iss. 1, JANUARY 2016

PDF  Article PDF Version

Received: 9 June 2015

Received in revised form: 18 July 2015

Accepted: 25 November 2015

Available online: 24 January 2016

Subject Heading: INVESTMENT ANALYSIS

JEL Classification: L52

Pages: 82-92

Ryzhikova T.N. Bauman Moscow State Technical University, Moscow, Russian Federation
tnr411@yandex.ru

Borovskii V.G. Bauman Moscow State Technical University, Moscow, Russian Federation
borovskiy@inatek.ru

Subject The paper analyzes the condition of machine-building enterprises using certain premises of the pre-project analysis method, and considers the applicability of methodological provisions of the modernization theory.
Objectives The aim of the study is to examine problems identified through the analysis of Russian enterprises using our unique methodology, to assess prospects for enterprise modernization by industries, and factors influencing the modernization.
Methods We employed econometric methods to analyze various aspects of machine builders' activity, and defined the most efficient approaches to assessing the state of these enterprises.
Results We assessed the condition of machine builders, performed a factor analysis and highlighted critical factors of the condition of domestic machine-building enterprises. We also performed a cluster analysis and identified groups of companies with different levels of equipment status. The comparison with world-class indexes enabled to evaluate the economic potential of modernization, output growth, and cost reduction.
Conclusions and Relevance Based on the assessment of enterprise condition, it is possible to appraise prospects and possibilities of the State on a long-term horizon.

Keywords: modernization, industry, pre-project analysis, status indicator, scaling

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