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Model of Import Substitution as a Strategy of National Production

Student: Egiazaryan Edmon

Supervisor: Evgeny M. Krasavin

Faculty: Faculty of Economics

Educational Programme: Economics (Bachelor)

Year of Graduation: 2016

In this paper, import substitution was considered as one of the measures to increase the efficiency of the economy, as well as an intermediate step in the transition to export. Tangible is a global shortage of empirical studies that have analyzed the possibility of import substitution on a regional scale and national scale. The aim of this study is to investigate the possibility of introducing the policy of import substitution as an example of the Nizhniy Novgorod region. Despite this, the most important trading partner of the Nizhny Novgorod region in the far abroad in Germany currently. Moreover, in Germany the import of the commodity nomenclature wide, including a significant proportion of products with high added value. Commodity structure of imports in the Nizhny Novgorod region is mainly formed by machinery, equipment, vehicles (more than 40% of total supply) and chemical production (about 30%) and metals and products from them (about 15%). These form the basis of the Nizhny Novgorod branch of the economy, indicating the possibility of wide import substitution in these areas. the state of the industry have been analyzed further in the region in the context of selected niches for isportozamescheniya. Despite the increase in the volume of goods shipped in 2014, the profitability decreases as balancing financial result. The main recommendations for the implementation of import substitution strategies were identified: 1) the revision of the legal framework to ensure the region's exchange rate policy sonopravlennosti federal policy; 2) focus on the priority of the local manufacturers of machines, equipment and vehicles with the participation of state and municipal procurement; 3) to provide a multiplier effect in related industries.

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