Sectoral and Territorial Specifics of Value-Added Chains in Russia: the Input-Output Approach

Abstract

This paper shows the growing role of domestic demand in the development of the modern economy. We consider the capacity of domestic markets of the largest countries of the world. We prove that the low volume of domestic demand inhibits economic dynamics and worsens the quality of socio-economic development of the Russian Federation. We consider that a promising direction for expanding domestic consumer and investment demand is the implementation of state policy to increase the incomes of the population, companies and the state in the framework of lengthening their own value-added chains that produce goods and services for final use. In this regard, the goal of this study is to analyze the existing value-added chains, assess the degree of their fragmentation, sectoral and territorial specifics. The input-output theory serves as a methodological basis for our study. The information source is represented by basic input-output tables and the data of the Unified Interdepartmental Statistical Information System. The novelty of the research consists in adjusting the multidisciplinary approach to the assessment of fragmentation of production to suit the needs of the regional level and in identifying modern patterns in the functioning of Russian value-added chains on the basis of the approbation of the approach on the materials of Russian regions. According to the results of the calculations we reveal the average position of 125 branches of the Russian economy in the supply and sales chains. We substantiate the degree of fragmentation of production chains of various industries; we substantiate the factors that determine the length of a production process. We calculate the average distance along the sales chain, which the goods cover to the moment of their use by the end consumer. We consider regional fragmentation of production in Russia. We reveal a number of statistically significant dependencies between the position of regions in the value-added chains and their socio-economic development performance

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