Аuthors:

Natalya Yu. Yaroshevich, Cand. Sc. (Econ.), Associate Professor of Enterprises Economics Dept. Ural State University of Economics

Vasily V. Migunov, Postgraduate of Enterprises Economics Dept. Ural State University of Economics

Abstract:

In the context of economic sanctions, there emerges an acute problem of finding optimal industry-specific policy mechanisms. Implementation of certain managerial decisions at the industry-specific level is largely dependent on the market development specificities. The study theoretically substantiates and empirically tests the hypothesis that sustainable development of industry-specific markets implies effective competition present in them. The theoretical framework includes the concepts of sustainable development and competition. The research methods are dynamic, statistical and industry analyses. We developed a set of methodological tools that provides for a dynamic complementary assessment of the industry-specific market parameters, namely the sustainabile development and the presence of effective competition. The first parameter was examined using the industry average annual growth rate, the second one – by analyzing the indicators of absolute leadership in costs, turbulence in market shares, and the Bain index. The empirical data of the work was retrieved from 10 industry-specific mechanical engineering markets in the Russian Federation for 2000–2020. The findings indicate a significant differentiation in the field in question: the hypothesis of the study was confirmed only for three industries of mechanical engineering; the rest of the markets are characterized by both unstable growth dynamics and a low level of effective competition. The proposed methodological approach is universal and can be used to analyze other industrial markets.

Keywords:

effective competition; sustainable development; industry-specific markets; industrial markets; mechanical engineering; cost leadership.

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