Institutional reforms in the system of regulation of capital movements when stimulated import substitution

Abstract

Large-scale structural reform of the socio-economic system of the country require a detailed institutional analysis of the national economy. Different interpretations of institutional reforms are analyzed, the improved definition of institutional reforms is given. The problems of the capital movement in the economy and the industrial sector are viewed. It was found that a change in capital structure causes the change of reproduction processes, including through import substitution. The author analyzed modern interpretations of import substitution, five scientific approaches to the definition of this concept are identified. The main characteristics of the import substitution are determined. The author gives a comprehensive definition of import substitution as a qualitative change in the economy, contributing to the development of production of goods similar to imported from abroad, and causing the increase of competitiveness of their products, domestic producers and the entire state in order to achieve innovative growth. The author reveals that economic growth stimulation should focus on the optimization of resource substitution in sectors which has a low dependence on imports, and to take into account the modified optimum Pareto in areas with a high or critical levels of import dependence. Federal programs for technical upgrading and modernization are not able to accelerate the pace of economic growth, however, can provide an acceptable level of economic security in the region and create conditions for the innovative development of the country and improving the competitiveness of the national economy. The advantages and disadvantages of import substitution are systematized. The author concludes that successful import substitution policy requires detailed and comprehensive program of import substitution which implementation will accelerate the country's economic growth.