Basis for selecting sectors and industries to diversify and stimulate the country's economic growth

Drobot E.V.1,2, Makarov I.N.3
1 Первое экономическое издательств
2 Центр дополнительного профессионального образования
3 Финансовый университет при Правительстве Российской Федерации (Липецкий филиал), Russia

Journal paper

Journal of International Economic Affairs (РИНЦ, ВАК)
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Volume 13, Number 3 (July-september 2023)

Citation:

Indexed in Russian Science Citation Index: https://elibrary.ru/item.asp?id=54628430
Cited: 1 by 30.01.2024

Abstract:
The article analyzes the features of the application of the latest techniques focused on the choice of sectors and industries for industrial development. The objectives and instruments of industrial policy focused on the development of selected sectors and industries for the purpose of diversification and modernization of the economy are substantiated. The analysis of the six stages of the Growth Identification and Facilitation Framework is carried out. An assessment of the possibilities of applying the theory of product space for the diversification of the country's economy and its export basket is given. Limitations in determining the goals of industrial policy are highlighted. It is proved that industrial development is associated with the transformation of the economy structure both from the point of view of diversification of production and export baskets and from the standpoint of increasing the level of complexity and uniqueness of individual products. At the same time, in order to succeed, it is not enough for a country to simply follow its comparative advantages, but it is necessary to switch to the production and export of more complex goods, with the help of which it is possible to diversify and modernize the economy.

Keywords: production diversification, national industrial policy, product space, Growth Identification and Facilitation Framework, economic development, economic growth

JEL-classification: L52, O14, O25, O47

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