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The Impact of Imports on the Dynamics of the Regional Manufacturing Industry Development

Author

Listed:
  • Igor Grebenkin

    (Udmurt division of Institute of Economics, Ural Branch of the Russian Academy of Science)

  • Igor Botkin

    (Udmurtia Branch of the Institute of Economics, Ural Branch of the Russian Academy of Sciences)

Abstract

The aim of the study is to identify regions with the highest dependence on imports and assess the impact of imports on the dynamics of the manufacturing industry’s growth. The methodological framework of the study involves the use of well-known processing methods of regional static data. The paper presents an empirical study of imports volume and structure in the regional manufacturing industry for the period from 2005 to 2014, and groups them on the basis of the assessment of sustainability indicators. At the regional level, intermediate imports are characterized by a high heterogeneity both in absolute and relative terms. The significant volumes of imports are concentrated in few regions with a high industrial concentration. It allows to allocate regions with the greatest risks for the manufacturing sector in negative external environment. The study demonstrates the relationship of the intermediate imports with the growth dynamics of the manufacturing industry in a certain set of macroeconomic conditions, assuming the economic growth with the stable exchange rate and relatively high growth rate of the producer prices on the domestic market. We also found a positive impact of imports on the growth rate of manufacturing industry in this period due to the effects of market substitution. Thus, the limitation of import substitution in specialized regions at preservation of the basic external factors is emphasized. The obtained results can be used for strategic planning at various levels of management, defining the model and direction for growth of the industrial sector of the region and improving the methodological tools for further empirical research.

Suggested Citation

  • Igor Grebenkin & Igor Botkin, 2016. "The Impact of Imports on the Dynamics of the Regional Manufacturing Industry Development," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(3), pages 703-713.
    • Handle: RePEc:ura:ecregj:v:1:y:2016:i:3:p:703-713
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    References listed on IDEAS

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    Cited by:

    1. Igor Grebenkin, 2018. "The Influence of Diversification on Innovative Activity in Regional Manufacturing Industry," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(2), pages 600-611.
    2. Vadim Islamutdinov, 2018. "Factors Affecting the Development of the Machine-Building and Metal-Working Industry in the Khanty-Mansi Autonomous Okrug — Yugra," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 1424-1437.

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