Import substitution in the manufacturing industries and its impact on the state of the domestic market (on the example of the North caucasian Federal District of Russia)

Abstract

Purpose: of the study is to reveal the potential of individual manufacturing industries of the North Caucasian Federal District of Russia in import substitution.Methods: the study is based on the use of a systematic approach, the use of methods of economic and statistical analysis, scientific abstraction, analogies and scientific generalizations, the macroeconomic and geopolitical context was taken into account, and methods of predictive analytics were used.Results: an analysis of the state of the clothing, footwear, woodworking and processing industries using the methods of predictive analytics shows that the district has the potential and resources for import substitution. To do this, it is necessary to revive these industries on a new technological basis and expand the legal, economic and financial freedom of action for existing actors. To intensify production processes in industries and increase the productivity of production factors, it is advisable to include individual operations in technological value chains carried out in other regions or create clusters or a group of clusters with the participation of enterprises from related industries.Conclusions and Relevance: in the North Caucasian Federal District of Russia, it is possible to implement an import substitution policy in the textile, clothing, footwear, woodworking and processing industries. The implementation of such a policy will reduce the level of import dependence, replace imported products with domestic counterparts. This statement is based on the availability of raw materials, technologies and labor resources in the district. The implementation of import substitution measures will have an important social and economic effect, which consists in the fact that it becomes possible to reduce unemployment in the district and create new jobs, as well as replenish regional budgets.