Home  Journals  Economic Analysis: Theory and Practice  12(459) - 2016 December

Import substitution of foodstuff: Conditions, resources and prospects for the Volga region

Vol. 15, Iss. 12, DECEMBER 2016

Article PDF Version

Received: 29 March 2016

Received in revised form: 2 September 2016

Accepted: 3 October 2016

Available online: 26 December 2016

Subject Heading: ECONOMIC ADVANCEMENT

JEL Classification: Q16, Q17, Q18, R11

Pages: 14-25

Subject The article considers foodstuff import substitution from the perspective of resources available in agriculture, competitiveness of industries and regions, the need to ensure sustainable economic growth with the analysis of risk-related situations.
Objectives The purposes of the study are to describe the specifics of modern import substitution of foodstuff, formulate conditions, define resources and priorities of import substitution, offer a model of sustainable development and analysis of risk-related situations for organizations participating in this process.
Methods The study employs the theory of international trade, the system theory and systems analysis to identify resources and priorities for foodstuff import substitution. We adapt the model of sustainable development and analysis of risk-related situations, which is created based on the elements of margin analysis.
Results The paper demonstrates that foodstuff import substitution should be export-oriented and implemented in two stages. We define conditions and resources for effective import phaseout at the regional level, underpin territorial and industry-specific priorities of the Volga region, emphasize the need for modernization of agricultural organizations involved in foodstuff import substitution to achieve sustainable economic growth. We also show a prototype of such organizations.
Conclusions and Relevance Foodstuff import substitution should be in two phases, i.e. short-term and long-term. It is crucial to use available resources to maximum effect. Priorities of import substitution should be identified on the basis of competitiveness of industries, regions, etc. If used, the offered model will accelerate the rates and increase the efficiency of foodstuff import substitution.

Keywords: import substitution, competitive ability, investment appeal, sustainable development, risk-related

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