Export-Oriented Industrial Policy: Theory and Practice

Abstract

The essence of the concepts «export-oriented model of industrial policy», «export-oriented production» is disclosed. An export-oriented industrial policy is justified in relation to manufacturing products with a high degree of processing, it stimulates the development of innovations and the creation of goods that can compete with goods produced in other states. The advantages and disadvantages of the country’s economic development and the export-oriented model are revealed. Negative factors in its implementation, associated with the export of raw materials (as, for example, in Russia and Ukraine); a high share of imported components in the production of domestic equipment; the outflow of human and financial resources from the manufacturing industry of the country; the growth of corruption in power structures are disclosed. The introduction of export-oriented industrial policy has been studied on the examples of such countries as Finland, Japan, China. Until 1992, Finland was a «country of loggers», where the share of timber products in exports was 70 %. Today, 46 % of the country’s exports are technological and high-tech products, the share of goods with a high degree of manufacturability is 18 %. The reasons for the growth in Japan’s exports are the development of high technologies (manufacturing products account for 95 % of exports), the rapid change in industrial models, and the implementation of state insurance for export trade. The share of the PRC, thanks to foreign investment, rapid industrialization, construction and growth in the sphere of technological services, in the share of the world economy increased from 1.8 % in 1978 to 18 % in 2018 (the second largest economy in the world), in terms of export it’s the 1st position, in terms of imports — the 2nd position in the world. In the XXI century in the export-oriented model of Ukrainian economic development, raw materials and low-tech production remains (over 74 %). To overcome these trends, priority directions have been developed for improving the state policy of regulating the development of export-oriented industries in Ukraine, namely: in the field of state financial support for exporters; increasing the competitiveness of manufactured products; assistance in the promotion of goods in the domestic and foreign markets; developing a marketing strategy in the country.