The impact of state support on the development of non-resource exports in the Russian Federation

About the authors:

Lyudmila M. Simonova, Dr. Sci. (Econ.), Professor, Department of Management and Business, University of Tyumen, Tyumen, Russia; l.m.simonova@utmn.ru

Anastasiia O. Dorokhova, Postgraduate Student, Department of Management and Business, Financial and Economic Institute, University of Tyumen; anna.tpp-to@mail.ru

Abstract:

This article aims to study the role of government instruments supporting export-oriented enterprises, which specialize in the production of non-resource and non-energy goods and services. In view of the increasing importance and potential of small and medium-sized enterprises, the authors, using economic analysis of the data of the Russian Federal Customs Service and the statistics of the Russian Export Center, have confirmed the need of such enterprises being the central element of the national system of support and development of exports.
The results prove that the majority of export-oriented small and medium enterprises show interest in starting export activities, increasing its share, and seeking to expand the geography of their supplies. However, a number of factors prevent the foreign economic strategy, including lack of confidence and employees with export competencies, financial limitations, as well as complete inexperience when interacting with foreign counterparts and markets in general.
The authors have determined that the insufficient level of competitiveness on part of the Russian producers requires a full-fledged support of the state authorities to stimulate non-resource and non-energy export. The statistical analysis of the recent years shows that the indicator of Russian competitiveness on foreign markets has not undergone serious changes due to the low competitiveness of the Russian exported goods, as well as insufficient knowledge and skills of export-oriented enterprises in terms of strengthening their position on new markets.
The world experience shows that each nation puts their own priorities on the choice of export development direction. Based on a comparative analysis and classification of support measures in the European Union, the authors have identified the possibility of approximating the existing mechanisms for supporting small and medium export-oriented enterprises in the Russia.
The results have revealed a linear relationship between the launch of programs to support export-oriented enterprises and the growth of foreign economic activity in general, as well as the relationship between such activities as the interaction with relevant ministries and agencies, the cooperation with key industry and business organizations, and the improvement of export conditions in Russia.

References:

1. Russian Export Center Database. Accessed 5 September 2019. https://www.exportcenter.ru/international_markets/regions_export/ [In Russian]

2. World Bank database “World Development Indicators”. Accessed 5 September 2019. https://data.worldbank.org/products/wdi [In Russian]

3. Balandina G. V., Ponomarev Yu. Yu., Sinelnikov-Murylev S. G., Tochin A. V. 2018. “Customs administration in Russia: what to do?”. Report of CCP. February. Accessed 5 September 2019. https://www.csr.ru/uploads/2018/02/20180228_Tamozhnya-doklad.pdf [In Russian]

4. Volchkova N. 2018. “How Russia should diversify its exports”. Vedomosti. Accessed 5 September 2019. https://www.vedomosti.ru/opinion/articles/2018/06/13/772522-diversifitsirovat-eksport (05.09.2019).

5. Knobel A., Firanchyuk A. 2017. “Foreign trade in 2016: stabilization of exports and imports”. Monitoring of Russia’s Economic Outlook, no 4 (42), March, pp. 10-17. [In Russian]

6. Koval A., Levashenko A. 2017. “Russian export support system: comprehensive approach”. Russian Economic Development, no 12 (24), pp. 10-14. [In Russian]

7. Koval A. A., Levashenko A. D., Sinelnikov-Murylev S. G., Trunin P. V. 2018. “Currency regulation and control reform in Russia”. Report of the Central Soviet Socialist Republic, March. Accessed 5 September 2019. https://www.csr.ru/uploads/2018/02/20180228_Tamozhnya-doklad.pdf [In Russian]

8. The Central Bank of the Russian Federation. 2016. Talking Trends. Macroeconomics and Markets, no 7 (06), June, pp. 52-53. Accessed 5 September 2019. https://www.cbr.ru/Collection/Collection/File/19700/bulletin_19-03.pdf [In Russian]

9. Orlova M. S., Dedkova E. G. 2018. “Problems of non-resource export development in Russia”. In: Youth Science in Regional Development. Vol. 1, pp. 302-304. [In Russian]

10. Petrykina I. N. 2015. “Indicators of development and usage level of human capital of the region”. Proceedings of Voronezh State University. Series: Economics and Management, no 3, pp. 112-115. [In Russian]

11. Spartak A. N. 2017. “Prospects for Russia’s export expansion and its state support”. Russian Foreign Economic Journal, no 5, pp. 3-18. [In Russian]

12. Spartak A. N. 2017. “Perestroika in Russian Export”. Russian Foreign Economic Journal, no 4, pp. 3-13. [In Russian]

13. Spartak A. N., A Knobel. Yu., Flegontova T. A., Ismagilova O. D., Koval A. A., Levashenko A. D., Pyzhikov N. S., Sneg M. L., Khokhlov A. V., Yakubovsky I. V. 2018. “Prospects of the Russian non-resource export growth”. In: Economic Development, pp. 132. [In Russian]

14. Spartak A. N., Khokhlov A. V. 2016. “Improvement of methodological approaches towards Russia’s exports analysis”. Russian Foreign Economic Journal, no 5, pp. 3-13. [In Russian]

15. Yakushev N. O. 2017. “High-Technology Export of Russia and Its Territorial Aspects”. Problems of Territory’s Development, no 3 (89), pp. 62-77. [In Russian]

16. World Economic Forum. 2017. “Impact of the Fourth Industrial Revolution on Supply Chains. System Initiative on Shaping the Future of Production”. Accessed 5 September 2019. http://www3.weforum.org/docs/WEF_Impact_of_the_Fourth_Industrial_Revolution_on_Supply_Chains_pdf

17. International Monetary Fund. Accessed 5 September 2019. http://www.imf.org/EXTERNAL/PUBS/FT/WEO/2017/01/WEODATA/weoselgr.aspx

18. National Export Initiative/NEXT, NEI/NEXT. Accessed 5 September 2019. https://www.trade.gov/export-solutions