Economic Policy of the CIS Countries: Standard Import Substitution Instruments

Abstract

The aim of this study is to analyze the most widely used import substitution instruments of CIS and identifying the most prospective directions for import substitution developing in the economy of post-Soviet states. Due to implementation of a multi-stage comprehensive research project based on a quantitative approach, the aim of this study was achieved. The present study showed that three main import substitution instruments for CIS are import duties, non-tariff methods of foreign trade regulating and domestic policy instruments to support national producers. In addition, based on the correlation and regression analysis of the time series model, strong correlations between import by export coverage ratio and the productive capacity index of structural changes were found for almost all the countries studied. This indicates the reverse effect of protectionist import substitution mechanisms on a domestic market development. The reasons for the choice of management mechanisms by the public administration of most CIS countries, which lead to a purposely negative result, could not be studied within this work. Additionally, the results may be useful in practical work of anti-corruption organizations for the suppression and prevention of the corrupt state-criminal networks in the field of import substitution.