The Role of State Support for Enterprises in the Implementation of the Import Substitution Process

This work examines the impact of state support on the behavior of importing enterprises, including those engaged in import substitution, being one of the latest studies evaluating the effectiveness of state support for import substitution and comparing the availability of state support for importing enterprises and other firms. The data used in this work was collected as a part of the research project “Factors of Competitiveness and Growth of Russian Manufacturing Enterprises” implemented in 2018 within a framework of the Basic Research Program at the National Research University Higher School of Economics (HSE). The results of the analysis revealed both positive aspects of the current import substitution strategy, indicating its effectiveness, and imperfections that require adjustment. Thus, according to the study, import-dependent enterprises have a wider access to state support compared to other firms, which indicates the presence of attention from the government to such companies. Among the factors hindering the implementation of an effective import substitution policy, the following were identified: insufficient support for exporting enterprises implementing import substitution; the lack of a positive impact on import substitution provided by tax support and support at the local government level. The findings suggest the need to attract more government attention to the microeconomics of import substitution. This study can be continued as part of a more in-depth study of the impact of state support on the dynamics of import substitution by expanding the list of dependent dynamic variables, analyzing state support not only by levels of government, but also in the context of its content (financial or organizational).