Theoretical Basis of Import Substitution in the Agro-Industrial Complex

I.L. Vorotnikov, M.V. Muravyova, K.A. Petrov
European Research Studies Journal, Volume XXI, Issue 3, 751-759, 2018
DOI: 10.35808/ersj/1098

Abstract:

The authors consider the relevance of import substitution and the need for its theoretical justification. This is followed by a summary of international experience of implementing import substitution policy at the macrolevel, based on the national theories. The paper examines approaches to the definition of import substitution and classifies them according to the procedural and structural principle. Based on the analysis of the most accessible data sources, the authors give their own definition of the concept, considering specific industry characteristics. The study provides a general mathematical formulation of diversified import substitution in the agro-industrial complex based on all its three main spheres (production of means of production, agriculture, processing industry). The authors define import substitution policy in the agrarian sector of economy and highlight its special features. To form a theoretical basis for further modeling, the authors allocate different types of import substitution and highlight the need to develop a methodological basis of accounting for import substitution as a process with the elaboration of narrow-branch indicators based on the example of food balance sheets.


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