Substitution effect in high-tech industry in the USA in foreign trade share and domestic market protection

Abstract

The transition to the sixth technological order, characterized by the systemic elements of the information revolution, requires a comprehensive analysis of the aggregate dynamic processes trade operations in the context of the respective commodity groups. Using the traditional methods of the statistical and economic method, in general terms, reduced to the formula: "domestic production + import - export", the relative quantitative indicators of the share of imports and exports of products of the leading high-tech industries of the United States were calculated for specific periods of time in the period 1951–2020, correlated with domestic production for the same period. Thus, an assessment of the impact of the "substitution effect" in the high-tech industry of the United States is given in relation to the volume of exports and imports in the context of certain groups of analyzed industries. The empirical results obtained contributed to the identification of trends in the regulation of American imports of high-tech industry products to protect the domestic market under the influence of the substitution effect in US foreign trade in the period under consideration. The main conclusion is that the priority in the focus of American foreign trade policy in terms of protecting the domestic market of high-tech industrial products, was and remains a flexible, expedient (in terms of substitution and integration vectors) combination of tariff and non-tariff restrictions on imports.