Scientific Journal of KubSAU

The meaning of the definition of "import substitution" is clarified, import and export item features of the national economy are discussed, special attention is paid to the possibilities of expanding domestic and international markets by enhancing the competitiveness of industrial economies, the development of production with a large number of processing and high added value, increasing the traditional segment of high-tech products. It is noted that modern export orientation expands not only the market share of domestic products on foreign markets, but also significantly improves the competitive position of producing organizations in the domestic market. Potential geographical areas and countries-consumers of products of domestic production enterprises are highlighted. The article emphasizes the advantages to be gained from a substitution in the short to medium term with moderate protectionism by the state. The problems and possibilities of import substitution in agriculture and also the impact of past crisis, devaluation of the ruble on the processes of import substitution and export orientation, the role of the implementation process of import substitution in the security of the country are discussed. We offer solutions which will contribute to more successful implementation of the strategy of import substitution in manufacturing industries of agriculture; we have also made prognoses about short, medium and long term positive and negative predictive effects of import substitution and export orientation using retrospective of development of these processes

The authors note, that the system of state regulation of agribusiness sets the rules and creates a relatively equal competitive opportunities for all market participants. The state support though is directed to increase efficiency of the state regulation of all agricultural subjects, including small-scale farming. Classics of retrospective of market relations’ development have shown that the manufacturing business can be quite successful in a self-regulatory market. Later, the practice of using the Marxist economic theory revealed the insolubility of the contradictions in the functioning of the classical market model. The Paradigm of the Keynesian school has confirmed the contradictions of the classical equilibrium theory of the free market. In the result, the strategy of the industrial markets development has swept in the direction of the neo-conservative models of regulation. Today, the integration models that are using synthesis of state-and market-based regulatory instruments are remaining the philosophy of many Worlds’ developed economies. At the same time, in our agrarian economy, the balanced and equilibrium proportions of the development are absent, what requires greater state involvement in the regulation of the agribusiness growth. The authors believe that the latest Western sanctions provide additional opportunities for the development of domestic agricultural production. The state should actively use its capabilities in the development and strengthening of domestic agricultural production and access to foreign commodity markets. After achieving adequate competitive position providing sustainable economic growth of the agricultural economy, the intervention of state protectionism can be reduced and, simultaneously, the role of the liberal approaches should be increased