Foreign trade of Russia: facilitating production processes

Vladimir Petrovich Obolenskiy
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Vladimir Petrovich Obolenskiy: Institute of Economics, RAS, Moscow, Russia; Primakov Research Institute of World Economy and International Relations RAS, Moscow, Russia

Russian Foreign Economic Journal, 2019, issue 9, 7-22

Abstract: The article analyzes the role of exports and imports of goods and services in facilitating production processes, income and revenue generation, and saving jobs over the past years, as conditions for Russia's foreign trade have become more challenging. It is noted that reliance on external demand enables enterprises of the mining, iron and steel, chemical and timber processing industries, the defense-industrial complex and the service sector to maintain their production levels. It is shown that exports of finished products stimulate greater output in manufacturing industries than in mining industries and promote the manufacturing recovery. It is stressed that in the context of increased protectionism and continued sanctions pressure from Western countries the relevance of state support for exports in all forms is increasing. It is stated that all sectors of Russia's economy, including households, have been affected by a significant reduction in imports. The article draws attention to the fact that despite the weaker rouble and implementation of import substitution projects, most domestic industrial enterprises are still forced to import equipment, raw materials and components due to the lack of production in the territory of the Russian Federation of the necessary equipment, components and raw materials, as well as low quality of domestic products. Based on the analysis, it is concluded that the growth of foreign trade and its impact on production in the near future will largely depend on state support for exports at the federal, regional and sectoral levels, as well as on the implementation of measures aimed at expanding domestic demand and promoting imports of intermediate and investment goods.

Keywords: Export; import; state support; import substitution; impact on production (search for similar items in EconPapers)
Date: 2019
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