IDEAS home Printed from https://ideas.repec.org/a/ura/ecregj/v1y2016i3p703-713.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: http://economyofregion.ru/Data/Issues/ER2016/September_2016/ERSeptember2016_703_713.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jean Imbs & Romain Wacziarg, 2003. "Stages of Diversification," American Economic Review, American Economic Association, vol. 93(1), pages 63-86, March.
    2. Joseph Persky & David Ranney & Wim Wiewel, 1993. "Import Substitution and Local Economic Development," Economic Development Quarterly, , vol. 7(1), pages 18-29, February.
    3. B. Zamaraev & T. Marshova., 2015. "Production Capacity of Russian Industry: Potential of Import Substitution and Economic Growth," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 6.
    4. Gianluigi Coppola & Maria Rosaria Garofalo & Fernanda Mazzotta, 2002. "Industrial Localisation and Economic Development. A Case Study," CELPE Discussion Papers 71, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    5. Bruton, H.J., 1998. "A Reconsideration of Import Substitution," Center for Development Economics 156, Department of Economics, Williams College.
    6. Berezinskaya, Olga (Березинская, Ольга) & Vedev, Alexey (Ведев, Алексей) & Larionova, Dina (Ларионова, Дина), 2015. "Production Dependence on Imports of Russian Industry and Mechanism of Strategic Import Substitution [Производственная Зависимость От Импорта Российской Промышленности И Механизм Стратегического Имп," Published Papers mak11, Russian Presidential Academy of National Economy and Public Administration.
    7. Steven Cobb & David Weinberg, 1993. "The Importance of Import Substitution in Regional Economic Impact Analysis: Empirical Estimates from Two Cincinnati Area Events," Economic Development Quarterly, , vol. 7(3), pages 282-286, August.
    8. Henry J. Bruton, 1998. "A Reconsideration of Import Substitution," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 903-936, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yilmaz Akyuz, 2005. "The WTO Negotiations on Industrial Tariffs: What is at Stake for Developing Countries?," Working Papers 2005/8, Turkish Economic Association.
    2. Yadong Luo & Huan Zhang & Juan Bu, 2019. "Developed country MNEs investing in developing economies: Progress and prospect," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 633-667, June.
    3. Cohen, Joseph N., 2008. "Managing the Faustian bargain: monetary autonomy in the pursuit of development in Eastern Europe and Latin America," MPRA Paper 22435, University Library of Munich, Germany.
    4. Wen Li Cheng & Jeffrey Sachs & Xiaokai Yang, 2005. "An Inframarginal Analysis Of The Ricardian Model," World Scientific Book Chapters, in: An Inframarginal Approach To Trade Theory, chapter 6, pages 87-107, World Scientific Publishing Co. Pte. Ltd..
    5. Cohen, Joseph N, 2010. "Neoliberalism’s relationship with economic growth in the developing world: Was it the power of the market or the resolution of financial crisis?," MPRA Paper 24527, University Library of Munich, Germany.
    6. Inkyo Cheong & Valijon Turakulov, 2022. "How Central Asia to Escape from trade isolation?: Policy targeted scenarios by CGE modelling," The World Economy, Wiley Blackwell, vol. 45(8), pages 2622-2648, August.
    7. Cohen, Joseph N & Linton, April, 2010. "The historical relationship between inflation and political rebellion, and what it might teach us about neoliberalism," MPRA Paper 22522, University Library of Munich, Germany.
    8. Bianchi, Ana Maria, 2002. "For Different Audiences, Different Arguments: Economic Rhetoric at the Beginning of the Latin American School," Journal of the History of Economic Thought, Cambridge University Press, vol. 24(3), pages 291-305, September.
    9. Tol, Richard S.J., 2012. "A cost–benefit analysis of the EU 20/20/2020 package," Energy Policy, Elsevier, vol. 49(C), pages 288-295.
    10. Cuervo-Cazurra, Alvaro, 2016. "Multilatinas as sources of new research insights: The learning and escape drivers of international expansion," Journal of Business Research, Elsevier, vol. 69(6), pages 1963-1972.
    11. Cuervo-Cazurra, Alvaro, 2007. "Sequence of value-added activities in the multinationalization of developing country firms," Journal of International Management, Elsevier, vol. 13(3), pages 258-277, September.
    12. Reinhardt, Nola & Peres, Wilson, 2000. "Latin America's New Economic Model: Micro Responses and Economic Restructuring," World Development, Elsevier, vol. 28(9), pages 1543-1566, September.
    13. Alvaro Cuervo-Cazurra & Luis Alfonso Dau, 2009. "Structural Reform and Firm Exports," Management International Review, Springer, vol. 49(4), pages 479-507, September.
    14. Andrey E. Shastitko & Anna I. Meleshkina & Olga A. Markova, 2021. "The market regulation triad: Antitrust, industrial policy and protectionism in the optical fiber market," Upravlenets, Ural State University of Economics, vol. 12(1), pages 47-61, March.
    15. Wen Li Cheng & Meng-Chun Liu & Xiaokai Yang, 2005. "A Ricardian Model With Endogenous Comparative Advantage And Endogenous Trade Policy Regimes," World Scientific Book Chapters, in: An Inframarginal Approach To Trade Theory, chapter 7, pages 109-130, World Scientific Publishing Co. Pte. Ltd..
    16. Mariateresa Fiocca, 2001. "Mediterraneo e Balcani: Due Aree di Crisi e di Opportunità alla periferia dell'unione Europea," ISAE Working Papers 19, ISTAT - Italian National Institute of Statistics - (Rome, ITALY).
    17. Sanjaya Lall, "undated". "FDI and Development: Policy and Research Issues in the Emerging Context," QEH Working Papers qehwps43, Queen Elizabeth House, University of Oxford.
    18. Head, Keith & Mayer, Thierry & Ries, John, 2010. "The erosion of colonial trade linkages after independence," Journal of International Economics, Elsevier, vol. 81(1), pages 1-14, May.
    19. Cooke, Stephen C. & Watson, Philip, 2011. "A Comparison of Regional Export Enhancement and Import Substitution Economic Development Strategies," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 41(1), pages 1-15.
    20. Juan Carlos Moreno Brid & Esteban Pérez Caldentey, 2010. "Trade and Economic Growth: A Latin American Perspective on Rhetoric and Reality," Chapters, in: Mark Setterfield (ed.), Handbook of Alternative Theories of Economic Growth, chapter 20, Edward Elgar Publishing.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ura:ecregj:v:1:y:2016:i:3:p:703-713. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alexey Naydenov (email available below). General contact details of provider: http://www.economyofregion.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.