Import Substitution as a Form of Effective Socio-Economic Policy of the State

Abstract

The article is devoted to an urgent problem, the solution of which will improve the existing tools and approaches to import substitution in Ukraine. The article describes the process of import substitution as a kind of state policy. The main features of the process of import substitution and directions of implementation based on the criteria of economic, social and strategic expediency are given. The possibilities and limitations of the implementation of the import substitution policy as a method of stabilizing the economy are revealed. The necessity of applying the policy of protectionism, deregulation by the state to obtain a socio-economic effect has been substantiated. The study identifies the elements of the implementation of approaches to import substitution in Ukraine and proposes the directions of the organizational and economic mechanism for regulating import substitution. Import substitution should be considered not only in the commodity sense, but also in its resource component, institutional aspect, the degree of influence on the rights of access to resources and markets, and the like. Taking these aspects into account makes it possible to systematically and comprehensively understand the scale of the import dependence of the domestic market and more effectively implement the import substitution policy. Numerous studies of recent years indicate that the policy of import substitution is considered in the context of the problem of ensuring economic growth of the national economy, is constrained by the restriction of the balance of payments, and therefore, to support it, it is necessary either to increase exports or restrict imports. The import substitution policy must be implemented based on the criteria of economic, social and strategic expediency. The result of the use of import substitution should be an increase in the competitiveness of domestic products by stimulating the modernization of production, increasing its efficiency and the development of new competitive types of products with a relatively high added value. This will allow the country to increase the level of gross domestic product production and compete on equal terms with developed industrial countries.