State Policy Priorities for Economic Security Provision among Processing Industries

Melnikov Alexander Borisovich,Rudenko Vladimir Valentinovich,Trysyachny Vladimir Ivanovich,Snimshikova Irina Viktorovna,Aydaeva Sakina Agaverdievna

doi:10.5539/jpl.v10n3p112

Melnikov Alexander Borisovich, Rudenko Vladimir Valentinovich + Show 3 more

Open Access

https://doi.org/10.5539/jpl.v10n3p112

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Abstract

The Russian specificity of processing industry functioning does not allow domestic products to compete on an equal basis with imported analogues, not only at external, but also at the domestic market, which makes a negative impact on the level of economic security. In this context, the harmonization of industrial and trade policies can be viewed as the combination of individual development institutions aimed at the search of external and internal sources of investment resources, as well as the development of import-substituting industrialization policy trends. The results of modeling using the modified Grossman-Helpman model demonstrate that the hypothesis about the dependence of import tariff rate on the strength of industrial lobby groups is not confirmed. Consequently, the tariff foreign trade policy of Russia is a fragmentary one and does not develop the unified principles and priorities for key processing industry support. In this regard, the main task is the development of universal tools that allow to increase the level of business entity adaptability to the increased volatility of endogenous and exogenous factors negatively influencing the level of economic security among industrial complexes.

Highlights

One of the main tools to ensure the required level of economic security in modern conditions is the transition to the strategy of "import-substituting industrialization", which facilitates the transformation of the economy structure from labor-intensive and energy-intensive industries in favor of capital-intensive and knowledge-intensive industry development
The low quality of manufactured goods makes a negative impact on the level of economic security, which does not allow domestic products to compete with imported counterparts on an equal basis, at external markets, and at the domestic market
The main tasks that needed to be addressed by the states that use the import substitution strategy are the following ones: "changing the structure of the economy sectors and the increase of labor productivity in line with the best practices of developed countries dominated by high-tech sectors at the replacement of imported goods with the goods produced within the country" [3]

Summary

Introduction

One of the main tools to ensure the required level of economic security in modern conditions is the transition to the strategy of "import-substituting industrialization", which facilitates the transformation of the economy structure from labor-intensive and energy-intensive industries in favor of capital-intensive and knowledge-intensive industry development. The provision of an acceptable level of economic security in processing industry, especially with regard to the elimination of the domestic production base technological backwardness, is a key task of the state policy in the field of import substitution.

Results

Conclusion