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Import Substitution and Capacity Reserves

  • ECONOMIC POLICY
  • Published:
Studies on Russian Economic Development Aims and scope

Abstract—

The article examines the issues of mobilization of production capacities in connection with the specific plans of the Ministry of Industry and Trade for import substitution. In connection with the urgent need, according to its management, to carry out planned unprofitable projects in modern conditions, the inevitably growing demand for domestic products can play the role of a driver in the capacity utilization policy. Moreover, as shown in the article, there are such precedents. The need for the development of capacities to fulfill the tasks of import substitution in two branches of machine tool building by 2024 has been assessed. And keeping in mind the state and competitiveness of available capacities for the production of, for example, metal-cutting machine tools, it turned out that the constraint for the execution of the task is not only the demand factor.

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Notes

  1. See, for example, [1].

  2. Foreign goods, which under the current conditions cannot be substituted in the domestic market…should be referred to as the so-called critical imports. The volume of such critical imports is estimated at about $130 billion [4].

  3. Import substitution, according to plans, should be carried out in the sectors of oil and gas engineering, chemical industry, light industry, automotive industry, machine building for food and processing industries, machine tool industry, non-ferrous metallurgy, ferrous metallurgy, power engineering, cable and electrical industries, heavy engineering, medical industry, pharmaceutical industry, timber industry, construction and road, municipal and ground airfield equipment, agricultural and forestry engineering, transport engineering, shipbuilding, radio-electronic industry, civil aircraft industry [6].

  4. See [7].

  5. https://ria.ru/20151217/1343634869.html.

  6. Decree no. 785 of August 4, 2015, established the Government Commission for Import Substitution [8].

  7. See, for example, [11, 12].

  8. Arithmetic mean value.

  9. In 1990, 75 types of products.

  10. Of recent works, we note [25].

  11. It is no coincidence that, according to our calculations, in accordance with the data of the World Bank and the ILO, labor productivity in Russia in relation to the world average has increased per employee from 136.2% in 2016 to 155.9% in 2021, in per hour of working time, from 151.8 to 170.5%, respectively.

REFERENCES

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Funding

The article was prepared as part of the implementation of the research plan of the Institute of Economics and Industrial Engineering, Siberian Branch, Russian Academy of Sciences, project “Tools, Technologies and Results of Analysis, Modeling and Forecasting of the Spatial Development of the Socio-Economic System of Russia and Its Individual Territories,” no. 121040100262-7.

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  1. Institute of Economics and Industrial Engineering, Siberian Branch, Russian Academy of Sciences, 630090, Novosibirsk, Russia

    B. L. Lavrovskii

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Lavrovskii, B.L. Import Substitution and Capacity Reserves. Stud. Russ. Econ. Dev. 34, 320–328 (2023). https://doi.org/10.1134/S1075700723030085

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