Investment activity in the Ural Federal District in the context of import substitution

Abstract

Subject. The article considers the investment activity in the regions of the Ural Federal District. Objectives. We analyze the impact of import substitution policy on investment activity by type of economic activity, using the regions of the Ural Federal District case. Methods. We employed methods of logic, statistical, and structural analysis. Results. We offer our own approach to the study of the impact of import substitution policy on the investment activity of regions. It rests on comparing the dynamics of Russian imports by major commodity group and the dynamics of investment in fixed assets by type of economic activity. The study revealed two trends. First, the development of substitute goods production. Second, the commodity sector development. It was found that in 2013–2019, investments in the sectors of mining and processing of mineral resources demonstrated faster growth. At the same time, investments in the production of import substituting goods did not show a stable positive dynamics. Thus, the enterprises of the Ural Federal District are more focused on the production of traditional export goods; the orientation of the import substitution policy to the domestic market and high-tech exports currently does not give the expected results and is local in nature. Conclusions. The results of the study can be used by Federal and regional authorities to assess the impact of import substitution policies on the investment activity of enterprises.

Opportunities and Threats for Innovative Import Substitution in Russia

“…Due to the sharp depreciation of the national currency, the value of imports increased; however, the complete replacement of imported goods with Russian ones is not possible yet. The items that were previously imported from Western Europe were replaced by goods produced in the countries that did not join Western sanctions, primarily in China and South American countries [20].…”