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Regional Economics: Theory and Practice
 

Tendencies of development of the agro-industry of Russia under the WTO condition

Vol. 12, Iss. 44, NOVEMBER 2014

Available online: 30 November 2014

Subject Heading: DEVELOPMENT OF AGRICULTURAL SECTOR

JEL Classification: 

Pages: 41-50

Morozova I.A. Volgograd State Technical University, Volgograd, Russian Federation
morozovaira@list.ru

Volkov S.K. Volgograd State Technical University, Volgograd, Russian Federation
ambiente2@rambler.ru

Orlova O.V. Volgograd State Technical University, Volgograd, Russian Federation
olga_orlova@mail.ru

Importance In connection with the accession of the Russian Federation to the World Trade Organization, the problem of development of agro-industrial complex (AIC) of the country as the largest sector of the economy has become highly topical.
     Objectives The aim of the study is the analysis of the current state of the agro-industrial complex of Russia by quantitative measurement of the dynamics of production areas of the agro-industrial complex.
     Methods The authors applied a comprehensive analysis to study the dynamics of the AIC (the imports volume, profitability and the level of production). The study is based on work with periodical printed publications, statistical databases, official documents of the World Trade Organization. The authors used the system approach, the method of comparison and analogies, synthesis of information, statistical and analytical methods.
     Results In the course of the study, the authors have solved the following tasks: assessment of the scope and level of support to the industry by the State and the determination of its validity; identification of sectors of the agro-industrial complex, that accession to the WTO has had the greatest impact; the wording of the necessary aspects of supporting agriculture in the WTO; the final evaluation of the impact of accession to the WTO on the agriculture of Russia. The article substantiates the role of agrarian sector in the economy of the country, which is a top priority to ensure the food security of the Russian Federation. The paper analyzes the current status of the agriculture of Russia. The authors specially assessed the major industry trends under the influence of various factors. The State support measures such as price support, interest rate subsidies on loans, costs compensation, as well as investment in the complex have a high degree of influence on the industry.
     Conclusions and Relevance The practical significance of the study is to use a sound assessment of the impact of entry into WTO on the agricultural sector for the implementation of State support measures. The authors concluded that in some areas of the agro-industrial complex, negative dynamics is observed due to the saturation of the domestic market to foreign agricultural goods, reducing investment support, as well as the use of outdated agricultural equipment.

Keywords: agriculture, profitability, imports, products, investment, World Trade Organization

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