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Journal section "From the Editorial Board"

Import substitution as a tool to enhance social-economic development of territories

Gulin K.A., Mazilov E.A., Ermolov A.P.

3 (77), 2015

Gulin K.A., Mazilov E.A., Ermolov A.P. Import substitution as a tool to enhance social-economic development of territories. Problems of Territory's Development, 2015, no. 3 (77)

Abstract   |   Authors   |   References
Import substitution today is regarded as one of the priority directions of development of Russia’s economy in the short term. Currently, the Russian Federation pursues a protectionist policy, which places the main emphasis on import substitution. The reasons for this approach to the development of the national economy are the sanctions imposed by the U.S. and other Western countries against Russia. The President’s Decree “On adoption of special economic measures to ensure the safety of the Russian Federation” in 2014 banned the import of certain agricultural products, raw materials and food, and limited the public procurement of goods of light industry and certain types of engineering goods from foreign suppliers. The embargo hit the EU countries, U.S, Australia, Canada, and Norway. Therefore, the problem of implementation of the import substitution policy is a priority of economic development both at the federal and regional levels. The article considers the concept of import substitution, defined its essence, and reveals the main approa ches to its implementation. The authors highlight three areas of import substitution at the regional level: “internal”, “stimulated” and “advanced”. They also propose activities aimed to form a favorable institutional environment for the development of import substitution industries. The article stresses the importance of building up Russia’s own scientific and technological potential of territories as a condition necessary for comprehensive use of their internal competitive advantages. It is noted that the substitution is an intermediate stage in re-industrialization, reconstruction and development of production potential in the territories. The objectives of higher order include the further improvement of competitiveness of local products, the increase in the supply of goods to the subjects of the Russian Federation and the growth of export sales


regions, government regulation, industrial policy, socio-economic development, sanctions, import substitution, foreign economic activity, protectionism

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