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Industrial production and service sector as strategic business rivals

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  • Chernov, D.

    (HSE)

Abstract

The article considers the processes of progress in production and service sectors and answers the question how and thanks to what service sector of Russian economy left the productive one behind (concerning contribution in GDP of our country). The rates of development of service sector turned out to be so high firstly - as a reason of peculiarities of new Russian economy, which historically was built on the market principles and was developing in conditions of investment resources deficit, secondly - as a reason of system differences between «physical» goods and services as an object of sale. Nowadays Russia faces an unusual symbiosis: effective service companies, operating in hard competitive sphere with average profitability and non-affective from the point of management industrial companies, which thanks to monopolistic pricing have great profitability, providing profits of Russian budget and determining a macroeconomic situation.

Suggested Citation

  • Chernov, D., 2011. "Industrial production and service sector as strategic business rivals," Journal of Modern Competition, Synergy University, issue 5, pages 77-101.
  • Handle: RePEc:snr:mdrcmp:y:2011:i:5:p:77-101
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