Russia and the Eurasian economic Union: a comparative analysis of the sectoral structure of the economy and industrial policy

Abstract

The main objectives of the Eurasian economic Union (EAEU), as an international economic integration, are to increase the sustainability of socio-economic development and competitiveness of industrial complexes of the member States on the basis of the formation of a new model of development and implementation of a coordinated industrial policy. The main feature of the EAEU is the clear dominance of Russia in a number of indicators, including population, GDP, industrial production, exports and imports, mutual trade, and investment. It is proved that the considered economic integration as a whole led to the change after a long-term decline in the negative dynamics of GDP to positive according to official statistics and analytical reports of international organizations for the period 2013–2018 at the expense of a coordinated industrial policy. Namely, industrial policy determines the vector of modernization of national economies and regulates the volume and sectoral structure of GDP. The features and tools of industrial policy strategies implementation are revealed. In accordance with the classification of industrial development strategies adopted by the UN conference on trade and development (UNCTAD), the article defines the types and tools of applied industrial policy strategies in the EAEU member States. The results of cross-country comparisons of the main macroeconomic indicators show that the structure of national economies and the level of socio-economic development of the EAEU member States are uneven and differ significantly. At the same time, the structure of the national economy of Russia does not meet modern challenges in comparison with such developed countries as the USA and Germany. A special role in the EAEU is played by mutual trade, demonstrating much greater resistance to crisis processes, and foreign trade with third countries. The transition to a coordinated industrial policy contributes to the strengthening of intra-sectoral nature of mutual trade in the EAEU.