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Economic Analysis: Theory and Practice
 

A methodology for sectoral analysis of the economy

Vol. 21, Iss. 2, FEBRUARY 2022

Received: 17 January 2022

Received in revised form: 26 January 2022

Accepted: 7 February 2022

Available online: 28 February 2022

Subject Heading: THEORY OF ECONOMIC ANALYSIS

JEL Classification: L10

Pages: 200–227

https://doi.org/10.24891/ea.21.2.200

Vera G. KOGDENKO National Research Nuclear University MEPhI, Moscow, Russian Federation
kogdenko7@mail.ru

https://orcid.org/0000-0001-9732-1174

Subject. The article analyzes sectors of the Russian economy, based on the Harvard Paradigm.
Objectives. The purpose is to develop a sectoral analysis technique and test it on the Russian enterprises data.
Methods. I employ general scientific principles and research methods, like abstraction, generalization of approaches of domestic and foreign authors on identification, development and analysis of sectors, and the industry analysis.
Results. The presented technique for analyzing economic sectors includes three stages. At the first stage, I investigate basic conditions, namely factors (forces) of competition in the sector under study, profitability and risk, and special aspects of State regulation. At the second stage, I analyze the behavior of companies in the sector and assess the operational efficiency, investment and financial activity of enterprises. At the third stage, the indicators of value creation and dynamics of sector development are analyzed. The methodology was tested on data from enterprises in four sectors of the economy: primary (extraction of coal, oil, natural gas, etc.), secondary (production of chemicals, iron and steel production, etc.), tertiary (water, air, and space transport, etc.), and quaternary (development of computer software, activities in the field of information technology, R&D).
Conclusions. I tested the hypothesis about the dynamics of economic sectors’ development based on calculations, and identified positive trends in the Russian economy, i.e. the faster growth of tertiary and quaternary sectors and their relatively high efficiency. As for negative trends, they include low investment activity of enterprises, posing a threat to economic growth.

Keywords: economic sector, sectoral analysis

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