How to Ensure Growth in the Output of the Manufacturing Industry
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How to Ensure Growth in the Output of the Manufacturing Industry A. K. Korneva and S. I. Maksimtsovaa, * a
Institute of Economic Forecasting, Russian Academy of Sciences, Moscow, 117418 Russia *e-mail: [email protected] Received April 10, 2020; revised April 28, 2020; accepted May 4, 2020
Abstract—The unprepared opening of the Russian economy in the course of radical reforms has led to the liquidation of most of the manufacturing industry and de-industrialization of the economy. Reluctance to admit and correct the mistakes made, with only the incomes of extractive industries remaining, can lead to the loss of social order in the country. Keywords: manufacturing industry, investment engineering, extractive industry, consumer goods, deindustrialization of the economy, bankruptcy and liquidation of enterprises, vertically integrated intersectoral corporations, cost of production DOI: 10.1134/S107570072005010X
The development of the domestic economy in the postreform period is known to be accompanied by the degradation and extinction of manufacturing industry: its share in the economy is constantly decreasing, and production volumes are falling. At the same time, production volumes for each of the five large product groups of manufacturing industry have also decreased significantly. This indicates the general reasons for the decrease in production of this industry and their equal impact on the entire spectrum of its various products. The reasons for the decline in manufacturing. An analysis of the dynamics of production of five product groups shows that a decrease in the output of manufacturing industries occurs as a result of, primarily, reproductive factors. They come down to the impossibility of renewing and modernizing the active part of the fixed capital of manufacturing industries based on domestic technology at a sufficiently high technical level, as provided for in the economic development programs. One of these reproductive reasons is the degrading quality of the first group of key investment engineering industries, including their products, which did not receive any domestic investments or purchases of imported equipment in due time. These industries are called upon to constantly maintain their high technical level in order to provide the same level to the second group of investment engineering industries. Degradation of industries first in the first group and then the second group does not enable the production apparatus of the third group of manufacturing industries that make products for further industrial use to be renewed and modernized in an acceptable form. The fourth group of consumer goods production is represented by the same manufacturing sectors as in the third group, but they include civil engineering in
addition. The production apparatus of the fourth group of industries also proved impossible to be satisfactorily renewed and modernized based on the supply of domestic equipment. The fifth group of industries producing technically complex durable goods
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