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Priority Areas for the Support and Promotion of Import Substitution in the Construction Industry

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  • Kotlyarova, S. N.

Abstract

The issues of import dependency and import substitution are major factors in the development of Russian economy. The subject matter of this study is the import dependency of the construction industry in the area of technology, while the goal of the study is to identify the scale of the problem and justify the mechanisms to overcome it. The article substantiates the signi cance and importance of import substitution in the production of construction materials and equipment. In the construction industry, the import substitution can be implemented in two main areas that require different approaches in support and promotion. First, this is the import substitution of construction products aimed at minimizing the risks of disruption in the supply of imported construction products and preferential use of domestic analogs of imported construction products. Second, this is the import substitution of technologies used for construction products manufacturing, when such a substitution is focused on promoting the development of competitive domestic production and technological and managerial modernization in the construction materials industry and construction industry. In the construction industry, the processes of import substitution have a number of constraints. The article examines the capabilities and factors that limit import substitution. Particular attention is paid to the practice of building regional construction clusters as a tool for implementing the import substitution policy. The author critically examines the goals and principles in the establishment of clusters, proactive sources, transfer systems, and the use of knowledge and innovation. The article makes a conclusion on the need for the strategic development of new products for the construction sector and domestic Research and Development within not only sectoral but also a cross-sectoral framework. The author provides a rationale for the basic forms of state support required for implementing the import substitution policy in the construction industry. This includes organizational, administrative, and economic measures, the implementation of which during the transition to import substitution could reduce the cost of construction materials, products, and structures. At the end of the article, the author formulates the priority areas for support under the policy aimed at promoting import substitution in the construction industry. The conclusions and recommendations proposed in this paper can be used by federal and regional authorities in the elaboration and adoption of strategic documents for the development of construction industry and in the planning of spatial development of the territories as well.

Suggested Citation

  • Kotlyarova, S. N., 2016. "Priority Areas for the Support and Promotion of Import Substitution in the Construction Industry," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 2(4), pages 460-468.
    • Handle: RePEc:aiy:journl:v:2:y:2016:i:4:p:460-468
    DOI: 10.15826/recon.2016.2.4.042
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    References listed on IDEAS

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    1. Henry J. Bruton, 1998. "A Reconsideration of Import Substitution," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 903-936, June.
    2. Barkley, David L. & Henry, Mark S., 2001. "Advantages And Disadvantages Of Targeting Industry Clusters," REDRL Research Reports 18792, Clemson University, Regional Economic Development Research Laboratory (REDRL).
    3. Audretsch, David B & Feldman, Maryann P, 1995. "Innovative Clusters and the Industry Life Cycle," CEPR Discussion Papers 1161, C.E.P.R. Discussion Papers.
    4. Barkley, David L. & Henry, Mark S., 2001. "Advantages and Disadvantages of Targeting Industry Clusters," UCED Research Reports 113337, Clemson University, University Center for Economic Development.
    5. Bruton, H.J., 1998. "A Reconsideration of Import Substitution," Center for Development Economics 156, Department of Economics, Williams College.
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