Export-oriented Manufacturing Research Articles

Development of export-oriented production of AIC as a condition for ensuring the economic security of the region

Development of export-oriented production of AIC as a condition for ensuring the economic security of the region

Активные операции Ашхабадского отделения Русско-Азиатского коммерческого банка (1905–1917)

The topic of the history of banks’ activity in Central Asia has been little studied in national and world historiography, although its study allows revealing new aspects of the economic policy of the Russian Empire in the region. The article is written on the basis of documents extracted from the Russian State Historical Archives (RSHA). The financial institutions of the Russian Empire took into account local specifics and encouraged the production of export-oriented products. The main goal of the article is to reveal the active operations of the Russian-Asian Commercial Bank in the formation of market relations in the traditional economy of the outskirts of the Russian Empire. We believe that the colonial economy had a specific character, which was expressed not in the destruction of the local «industry», but in the development of agriculture. In writing the article, statistical methods and the theory of modernization of the colonial periphery were used

Shaping a comprehensive government-supported country brand program

Country brand support programs are instruments of open protectionism, which results from unilateral sanctions by foreign countries or acts as a mechanism for direct government support of national producers, creating positive perception by customers abroad and promoting goods and services to foreign markets. However, the long-term preservation of protectionist measures in the national economy leads to the loss of competitiveness by producers and the national economy as a whole. Therefore, it becomes relevant to study the programs of several states in the context of the development of national production and exports, and search for approaches to shaping a comprehensive program of government support for the country brands, which correspond to the main fair competition features in the global economy based on agreements within the WTO. This study is aimed at identifying the feasibility of transforming the “Made in Russia” initiative into a comprehensive country brand government support program. The methodological tools of the studied problem are based on expert and mutual assessments, the Delphi method, mathematical statistics, and graphical modeling. The expert assessment method was used to substantiate the expediency of protectionism for domestic producers to preserve quality and environmental friendliness of export-oriented products in the current conditions that contribute to cultivating the country’s positive image. A cause-and-effect diagram (the so-called Fishbone Diagram) developed on the basis of the K. Ishikawa model made it possible to identify the main causes and conditions for shaping a comprehensive program for the country brand government support.

ЕАЭО ЖАҒДАЙЫНДА ҚАЗАҚСТАННЫҢ ЭКСПОРТҚА БАҒДАРЛАНҒАН АУЫЛ ШАРУАШЫЛЫҒЫ ӨНІМІН ӨНДІРУ

The system of measures of public support for production of export-oriented agricultural products in Kazakhstan and the EAEU member States is considered, directions for its improvement are determined. Indicators of production of gross domestic product, gross agricultural output, the share of crop production industry in it on average for 2015-2019 are presented. The prospects for export of domestic food have been studied; for this purpose, it is necessary to strengthen agricultural specialization of each industry. The authors note that phytosanitary measures are currently not regulated, there is no unified method for calculating the level of support, unified requirements for obtaining breeding products, a unified procedure for animal identification, unified rules for laboratory research and veterinary control. It is required to systematize and harmonize the existing tools and mechanisms for the development of the branches of agro-industrial complex of the republic in order to form a single market for the States of the Eurasian Economic Union, as well as develop sectoral programs. The article substantiates the need for systematic public support for the development of agro-industrial complex, aimed at meeting the needs of the domestic market and the implementation of centralized policy to promote exports. It is shown that environmental friendliness is one of the main competitive advantages of food products in the republic, contributing to the strengthening of Kazakhstan's positions on external sales market. The structure of exports of Kazakhstani agricultural products should be focused on reducing the share of raw materials in favor of agricultural products with high added value. In industries with high export potential, large specialized commodity zones and optimal flows of goods will be formed in order to ensure the country's food security.

Examining the linkage among market orientation, learning orientation and innovation performance: The mediation role of knowledge management

Small and medium enterprises (SMEs) exports contribute as a driver of the global economy and a source of economic growth. In the global era, to main a competitive advantage, SMEs need to produce behavior to ensure the feasibility of innovation performance. The purpose of this study is to investigate the relationship between market orientation, learning orientation, and knowledge management on innovation performance. The research method uses a research design cross-section. The study population includes all export-oriented manufacturing industries. SMEs and is registered in the Bali Provincial Industry and Trade Office database (2019). A total of 94 senior managers are SME interested in participating in the survey. Seven hypotheses are presented related to market orientation, learning orientation, knowledge management, and innovation performance, and the mediating effect of knowledge management. Structural equation model based Partial least square (SEM-PLS) is used to test the hypothesis. These findings reveal that learning orientation in manufacturing SME operation contributes to knowledge management. Knowledge management plays a mediating role in the relationship between market orientation and learning orientation on innovation performance. These results contribute additional insights to managers and policymakers about the concepts of market orientation, learning orientation, and knowledge management to achieve innovation performance.

The problems of investment support of innovative development of agriculture

The article examines the main problems facing the development of competitive agriculture, given the dynamism of investment in the industry and investment in the current environment of increasing globalization, as the introduction of innovative products is the basis for effective development of the enterprise, region and country. The analysis of the main indicators that characterize the level of investment support of enterprises of Lviv region, in particular the volume of capital investments and the volume of foreign direct investment. The volumes of agricultural output in enterprises and households of the population, and, accordingly, the possibility of attracting investment by these categories of producers are considered. The main problems of agricultural production are characterized and the directions of intensification of investment and innovation activity are offered, taking into account the support of the state, foreign economic potential of the region, its border location and export-oriented production. Innovative development of agriculture, expanding the ways of its investment are among the factors that play a crucial role in ensuring the balanced development of the region, building strategic prospects for its economic growth, identifying internal problems and obstacles to this process, and adequately assessing the potential of local resource levels. It is considered that the priority in today's conditions is the introduction of technologies for environmentally friendly cultivation of crops and the development of organic production, development of infrastructure for storage and distribution of agricultural products by attracting investment projects. It is important for agricultural producers to adapt to international food quality and safety standards and to produce agricultural products that meet EU requirements and standards. The model of strategic goals of innovative development of agriculture is offered, which aims to promote effective optimization of agricultural production, development of production infrastructure on the basis of state assistance and support, taking into account the stimulation of investment projects and attracting foreign funds.

German Business Mobilization against Right-Wing Populism

Why do some business associations mobilize, engage in collective action, and take public stands against the populist right while others do not? This article examines business mobilization against the populist right in Germany, which is heavily export-oriented and reliant on the European and global market order. Drawing on interviews with three business associations, the article presents three key findings. First, economic self-interest is a powerful driver of business mobilization: perceived threats and vulnerability spurred two German associations to act collectively against right-wing populism. However, mobilization is driven not by declining revenues or profits but by a mixture of values and material interests. Second, business associations that mobilize stress the need to reform the system, democratize the European Union, and address those who feel “left behind.” Third, medium-size, export-oriented manufacturers are the core business constituency supporting liberal democracy and the European Union. The article shows that some business factions can play a role in defending the liberal international order against right-wing populism.

ЭФФЕКТИВНОСТЬ ФУНКЦИОНИРОВАНИЯ ПРЕДПРИЯТИЙ АГРАРНОГО СЕКТОРА РЕСПУБЛИКИ КАЗАХСТАН

The authors analyze the current state of development of agriculture in the country, show ways to improve the performance of agricultural sector. The AIC aims to ensure the food security of the State, characterized by the level of satisfaction of the population with food, quality of food. The article notes that in the structure of gross national product, its share is still low, and the republic is import-dependent for certain types of agricultural products. The analysis of agricultural production in the context of categories of farms is given. The main reasons hindering its development are identified, such as: the presence of a significant number of inefficient small farms, a weak material and technical base, low level of implementation of innovative technologies in production. It has been justified that agricultural enterprises function most effectively on agrofood market, while peasant (private) farms prevail in number in agricultural entities, their number is 94%, or 196 thousand units. It has been determined that in the conditions of development of market relations, small peasant farms are also necessary, which more flexibly respond to consumer demand, but they must be effective. The comparison of the main economic indicators of agricultural enterprises and peasant (private) households is carried out. In practice, 40% of p (p) f have no more than 10 ha of land and generally work unprofitably. The authors believe that large, commercial farms should be formed in Kazakhstan, which should produce competitive, export-oriented agricultural products.

Effects of Foreign Direct Investment and Trade on Labor Productivity Growth in Vietnam

Among developing Asian countries that have accelerated their integration with the global economy, Vietnam has achieved remarkable economic development. Vietnam’s development strategy prioritizing the promotion of trade and foreign direct investment (FDI) resulted in the rapid transformation of its industrial structure from an agro-based one to one led by the export-oriented manufacturing sector in the past three decades. Given the importance of labor productivity growth on the structural transformation, the study examined the effects of FDI and trade on labor productivity growth in Vietnam in the long run and short run. The study employed the autoregressive distributed lag (ARDL) model of analysis using data from 1990 to 2017. The ARDL model analysis revealed that FDI, capital goods import, and export unanimously contributed to the labor productivity growth in the long run, while the impact in the short run remained ambiguous. The results confirm the theoretical framework augmenting the positive relationship that exists between FDI and trade and labor productivity growth. Vietnam’s experience is expected to provide an important lesson to other developing countries.

INVESTMENT AND INNOVATION MECHANISM OF COMPETITIVENESS FORMATION OF AGRICULTURAL ENTERPRISES IN CONDITIONS OF SUSTAINABLE DEVELOPMENT

Introduction. Structural changes in the national economy and modern economic conditions encourage agricultural enterprises to seek new approaches to ensuring the competitiveness of both products and the competitiveness of the enterprise as a whole. Unfavorable investment climate, imperfect innovation environment, lack of socio-economic influence of the state hinder the development of the agro-industrial sector, the use of foreign progressive experience in technology and organization of production, modern forms of management, which is a crucial basis for improving their efficiency and competitiveness. The purpose of this article is consideration and analysis of the essence of the investment and innovation mechanism to ensure the competitiveness of the agricultural enterprise in terms of sustainable development and identify key factors influencing the competitiveness of the enterprise. Results. The article considers issues regarding the investment and innovation mechanism of forming the competitiveness of agricultural enterprises. It is emphasized that the agro-industrial complex determines the specialization of Mykolaiv region in trade of grain and oilseeds, which poses a threat to the sustainable development of the region’s economy due to dependence on the world situation. The dynamics of foreign trade volumes by the enterprises of Mykolaiv region are analyzed, the main partner countries and export-oriented products of a vegetable origin are outlined. The structure of direct investments by the countries and by types of activity in the economy of Mykolaiv region in 2018 is considered. Attention is paid to the factors that hinder the attraction of investment in the field of agricultural production. Conclusions. It is determined that the mechanism of investment and innovation policy in the agricultural sector of the economy includes economic, organizational, legal and social measures. A number of measures to improve the investment and innovation mechanism to ensure the competitiveness of agricultural enterprises in Mykolaiv region are proposed. It is established that with the development of information and communication technologies, it is the smart specialization of the region that is able to intensify structural changes in the economy and increase the competitiveness of agricultural enterprises in terms of sustainable development. Key words: investment, innovation, competitiveness, enterprise, smart specialization.

Institutional bases of activation of export-oriented activities of agrarian enterprises of ukraine under conditions of deepening of eurointegration

The subject of the research is the theoretical, methodological and practical basis for studying the impact of the institutional environment on the efficiency of export-oriented production of enterprises in the agricultural sector of the economy and the activation of their foreign economic activities in the European agricultural market. The purpose of the work is to develop theoretical foundations and practical recommendations for the implementation of an effective system of institutional support for the activation of export activities of agricultural enterprises in the European development vector. Methodological basis of the article is general scientific methods of theoretical and empirical research, special methods of scientific knowledge. To conduct the research, the following methods were used: dialectical, economic-statistical, balance, normative, economic-mathematical, economic comparisons, grouping, graphic, system-structural analysis and synthesis. Results of work. The article examines the impact of the institutional environment on the development of export-oriented activities of domestic agricultural enterprises in the conditions of deepening the European integration process. The author suggests measures of an institutional and organizational-economic nature aimed at strengthening the export potential of enterprises of the agricultural and food complex and increasing their competitiveness in the common market of agricultural products of the EU member States. The field of application of results. The results and conclusions can be used in the development of a strategy for entering the European market of agricultural products for enterprises of the agricultural and food complex, training specialists in the field of international economic relations and foreign trade. Conclusions. Analysis of the current state of export-oriented activities of Ukrainian enterprises in the agricultural sector of the economy indicates the need for structural and institutional transformation of the system of organization of foreign economic activity of economic entities. In the context of the deepening of the European integration process, the functioning of enterprises in the agricultural sector of the economy is significantly affected by the internal and external institutional and market environment. Accordingly, this is reflected in the economic indicators of their activities and the competitiveness of Ukrainian agricultural products in the European market. Institutional conditions and factors that slow down the entry of Ukrainian agricultural enterprises to the European market are the following: imperfection of the national system of land market relations, lack of effective institutions of ownership and land use; inefficient structural and institutional policy of the state in the agricultural sphere; low level of institutional support, stimulation and regulation of export-oriented activities of agricultural enterprises; non-compliance of domestic agricultural and food products with European requirements and standards; imperfect quality control system for production, storage, transportation of food products, etc.

The German variety of grocery retailing: A historical institutionalist analysis of a non-core industry

This article undertakes a historical institutionalist analysis of the German grocery retail industry. It shows that the institutions that shape this non-core industry are not just modifications of those that shape German export-oriented manufacturing core industries. Retail institutions are fundamentally different, and many of them do not promote coordinated relationships of firms. This challenges the assumption of comparative capitalisms research that all-encompassing national institutions characterize Germany as a coordinated market economy. Further, retail institutions have developed their specific characteristics not just over the last decades, as theories of dualization might suggest. Rather, they are frequently rooted in a German petite bourgeoisie or Mittelstand tradition reaching back to the 19th century. A second critical period was the 1960s and early 1970s, when political struggles that resulted from the retail revolution further transformed retail institutions. Based on the literature from various academic disciplines and on original empirical research, the article reconstructs the historical development of the whole set of institutions that has shaped a specific German grocery retail structure dominated by retailers’ cooperatives and hard discount chains. The analysis of an important non-core industry also intends to contribute to a fuller understanding of the institutions that frame the German economy as a whole, including conceivable complementarities between core and non-core sector institutions.

Harnessing innovation policy for industrial decarbonization: Capabilities and manufacturing in the wind and solar power sectors of China and India

This study examines how technological characteristics influence the impacts of policy on innovation with respect to wind turbine and solar photovoltaic (PV) manufacturing industries in China and India. The analysis draws on patent applications and government policies in the aforementioned industries from 2000–2017. Wind power and solar PV patents in China have increased rapidly since the mid-2000s, whereas patent numbers in India have remained low. Between 2000–2017, wind turbine was a design-intensive and cost-competitive technology. Consequently, building innovation capabilities in the wind turbine industry required technology-push policies to support research and development and tacit knowledge transfer, and demand-pull policies to create a sizeable, predictable, and performance-oriented domestic market. Solar PV was considered to be a manufacturing-intensive and more expensive technology. Thus, the PV manufacturing industry benefited from technology-push policies that promoted export-oriented manufacturing. While the domestic market played a supplementary role, demand-pull policies that focused on guaranteed investment returns (feed-in tariffs) helped to improve the innovation performance in solar PV. China balanced the implementation of technology-push and demand-pull policies that met these technology-specific requirements. On the contrary, India’s inadequate technology-push policies led to a lag in innovation in wind power and solar PV. Thus, policymakers need to strike a balance between technology-push and demand-pull policies, particularly by integrating innovation policies into a policy mix, and focus on technological characteristics as they determine the nature of the technological learning required to develop innovation capabilities.

Foreign demand for agricultural commodities drives virtual carbon exports from Cambodia

Rapid deforestation is a major sustainability challenge, partly as the loss of carbon sinks exacerbates global climate change. In Cambodia, more than 13% of the total land area has been contracted out to foreign and domestic agribusinesses in the form of economic land concessions, causing rapid large-scale land use change and deforestation. Additionally, the distant drivers of local and global environmental change often remain invisible. Here, we identify hotspots of carbon loss between 1987–2017 using the dynamic global vegetation model LPJ-GUESS and by comparing past and present land use and land cover. We also link global consumption and production patterns to their environmental effects in Cambodia by mapping the countries to which land-use embedded carbon are exported. We find that natural forests have decreased from 54%–21% between 1987 and 2017, mainly for the expansion of farmland and orchards, translating into 300 million tons of carbon lost, with loss rates over twice as high within economic land concessions. China is the largest importer of embedded carbon, mainly for rubber and sugarcane from Chinese agribusinesses. Cambodian investors have also negatively affected carbon pools through export-oriented products like rubber. The combined understanding of environmental change and trade flows makes it possible to identify distant drivers of deforestation, which is important for crafting more environmentally and socially responsible policies on national and transnational scales.

Preconditions of seeds' production enhancement: a case study

The article reveals the current state of selection and seed production of grain crops in the Russian Federation. There were considered the barriers of the development of the subsector in the conditions when one of the priorities is the creation of export-oriented grain production, which is not possible without well-developed plant breeding and seed production. There were revealed the features of selection and seed production of grain crops in modern conditions: underfunding of organizations engaged in selection, lack of breeding laboratories in the field of genetic technologies, imperfection of legislation in the country, low level of material and technical support of seed production, illegal seed trafficking, lack of financial opportunities of agricultural producers to conduct timely the variety exchange and variety renewal. There were proposed the measures to improve the system of state regulation in the field of selection and seed production of grain crops to solve these problems.

Determinants of the Indonesia's current account balance: an error correction model approach

This study aims to investigate the relationship between exchange rate, Domestic Money Supply (M2), real Gross Domestic Product (GDP), and Foreign Direct Investment (FDI) on Indonesia’s current account balance (CAB) in the short and long term. For the purpose of this study, the Error Correction Model (ECM) is used. It uses data during the period 2000-2017. The result showed that (a) M2, real GDP, and FDI in the short-term have not significant effect on Indonesia’s current account but exchange rate has a significant negative effect; (b) in the long-term exchange rate, M2, and real GDP have not significant effect on Indonesia’s CAB, while FDI has a negative significant effect on Indonesia’s CAB. Policy recommendation for government as an implication of this study (a) stabilize the exchange rate in order to decrease current account deficit (CAD); (b) improve the investment climate and issue incentive policies for local investor; (c) increase the competitiveness of export-oriented products and reduce dependence on imports.

Consumption and Internationalization: Determinants for the Development of the Dairy Market in Poland

Purpose: The aim of this study is to evaluate selected factors determining the development of the dairy sector production in Poland in view of integration with the European Union. Design/Methodology/Approach: This explanatory research uses secondary data obtained from Statistics Poland (GUS) and materials from the Institute of Agricultural and Food Economics (IERiGŻ) in Warsaw. The research covers the years 2004-2018. Data analysis techniques include dynamic indices, correlation analysis and internationalisation index. Findings: The results demonstrate that for the development of the analysed sector in recent years export sales proved more important than the level and dynamics of domestic consumption. In terms of the internationalisation structure of the dairy sector, a high position of cheeses and cottage cheese can be observed as the main, in terms of value, product group in exports. Among negative tendencies, there are high dynamics of foreign sales of unprocessed products, poor promotion of Polish brands on foreign markets, and accepting sales without own brand. This area exhibits a clear potential for further development of the sector. Practical Implications: The findings give us an interesting signal for building strategies for the internationalisation of the Polish dairy sector, both in terms of institutional support and business decisions. Originality/Value: The study provides recommendations for the dairy sector in Poland needed to boost the quality of export-oriented product groups. Dairy sector companies must attentively observe the market and boost internal demand to better compete with imported products.

ТЕОРЕТИЧНІ ЗАСАДИ ФОРМУВАННЯ КОНКУРЕНТОСПРОМОЖНОСТІ ЯК ЕКОНОМІЧНОЇ КАТЕГОРІЇ В РОЗРІЗІ ПІДПРИЄМСТВА ТА ЕКСПОРТНОЇ ПРОДУКЦІЇ

The article identifies various theoretical approaches to the interpretation of the concepts of and products competitiveness. On the basis of the conducted research, the definition of the concept of export products competitiveness is proposed. It is proved that the competitiveness of export products means the ability of an enterprise to take into account foreign economic aspects of influence on the price of production, political instability in the country of the manufacturer and at the same time ensuring stable competitive advantages of goods by means of acceptable economic and technological indicators and convenience in delivery of the goods to the final consumer. The properties that are inherent in the categories and products are substantiated. The structural components of the competitiveness of metallurgical products are identified, which shape the competitive opportunities and advantages of the enterprise and are interrelated with each other. The relative quality has been calculated for the main technical parameter on the target market for metal products. Foreign economic aspects of the impact should be attributed to the duty rates of the importing countries, as well as the possibility of using trade preferences. For this purpose it is necessary to establish whether the goods comply with the rules of origin, that is, whether the goods are considered to be made in Ukraine, to prepare documents confirming its origin and to observe the rules of direct transportation of the goods. It is necessary to take into account the technical factors that affect the competitiveness of metallurgical products: in particular, the parameter of the yield strength of rebar, which is the most important among the competitive parameters of export-oriented products. It was investigated that the strongest competitor is the Australian company ONE STEEL, where the relative quality index was 1.04, which is significantly higher than that of PJSC ArcelorMittal. The proposal to increase the competitiveness of the rebar is to take into account other technical indicators of the reinforcing steel of PJSC “ArcelorMittal Kryviy Rih”, which are competitive. This will be the subject of our further research.

B2B sphere as an element of the exports potential development in the agricultural sector of the region

A key driver for the B2B sector development in Russia is agriculture. The main problem is the transition from import substitution to export-oriented production. Today, Russian production is in great demand, as it has established itself as an organic and high-quality product. Krasnoyarsk krai is a region rich in its natural resources. The presence of high-quality raw materials has the opportunity to produce an environmentally friendly product especially appreciated today in the foreign market.

Operation of high-technology product development based on functions and value

The sector of military-industrial enterprises was the most state supported in recent years. It is obvious that success of strategic initiatives is defined by efficiency of the enterprises diversification and can provide bringing domestic products to the world market with the highest level of competitiveness. Military-industrial enterprises (as drivers of the economy development) have to provide the implementation of several national programs and projects: industry development, diversification, import substitution of hi-technology products, production of the export-oriented products, increase of labor productivity, digital economy. That’s why it is important to find effective solutions, which can provide achievement of several tasks. At the same time, effective development of civilian products is interfered by a number of organizational and economic conditions. For definition of the unique set of functionality and characteristics of a product on the basis of the unique customer needs (for competitive hi-tech export-oriented civilian products), the FSA was created. This model allows to provide the civilian products manufacture development due to paramount and constant orientation to requirements of the market and clients, and the production process improvements for cost reduction without damage to its quality.