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The Processes of Import Substitution in the Agro-Food Sphere: Success or Failure?

Author

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  • Tatiana Belova

    (Academy of Russian Federal Penitentiary Service)

Abstract

The article is aimed at assessing the results of the protectionist policy in the agro-food sphere. The consumer food market depends on the import substitution in agriculture. Apparantly, it is erroneous to build a modern model of the agro-food market on the basis of export of cheap agricultural raw materials (grain) and import of expensive commodities. I found evidence to support this hypothesis in the works of foreign and domestic scientists. As a method I use the tools of statistical analysis. The empirical base of the study is represented by statistical material on export, import and domestic production for the period from 2012 to 2017 both in the country and in a typical region in the context of foreign trade (Ryazan region). The results of the study have showed the imbalance and irrationality of Russian export, import, domestic production and consumption. Since August 2014 agricultural producers have received several preferences for the growth of production: an embargo on food imports, government support and the weakening of the national currency. On the other hand, consumer demand decreased due to rising prices and lower incomes. The outstripping rise in food prices and the increase in the share of food expenditures in household budgets reflect an uneven state of the market. A detailed analysis of the situation in the regional markets has shown that the decline in consumer demand and saturation of local markets with imported products leads to an escalation of the problem of domestic products sales. The results of import substitution policy at the regional level should be measured in terms of economic access to food and per capita consumption. As a tool for the regulation of agro-food markets I propose to use the model of optimal placement of agricultural production. The results of the study can be applied in the development of state economic policy for regulating agro-food markets.

Suggested Citation

  • Tatiana Belova, 2019. "The Processes of Import Substitution in the Agro-Food Sphere: Success or Failure?," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(1), pages 285-297.
    • Handle: RePEc:ura:ecregj:v:1:y:2019:i:1:p:285-297
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    References listed on IDEAS

    as
    1. Dmitriy Izotov, 2018. "Influence of Foreign Economic Activity on the Economic Growth of Russian Regions," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 1450-1462.
    2. Dmitriy Karkh & Venera Gaianova & Philip Imel, 2015. "Priority Directions of The Regional Food Complex Effectiveness Increase," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(2), pages 260-271.
    3. Loginova D. & Uzun Vasily, 2016. "Russian food embargo: minor losses in western countries," Russian Economic Development, Gaidar Institute for Economic Policy, issue 9, pages 32-37, September.
    4. Karkh, D. A. & Gayanova, V. M. & Aymel, P., 2015. "Priority Directions of the Regional Food Complex Effectiveness Increase," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 1(2), pages 315-324.
    5. Kseniya Yekimova & Irina Savelieva & Ilya Tsalo, 2016. "Assessment of the Impact of the Changes in the Situation of the World Markets on the Regional Processes," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(3), pages 670-683.
    6. Uzun, Vasiliy & Lerman, Zvi, 2015. "Outcomes of agrarian reform in Russia," Discussion Papers 290038, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
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    More about this item

    Keywords

    embargo; food markets; food exports; food imports; export and import duties; agricultural policy; protectionism; free trade; food security; regional specialization;
    All these keywords.

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

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