Methodological Approach to the Selection of Tools for Selective Industrial Policy: Dynamic Analysis of the Agricultural Machinery Market

Abstract

The proposed methodological analysis is based on a logical comparison of the type of industrial policy, the tools used and industry analysis reflecting the structural and dynamic features of the development of a particular branch of the economy. The implementation of the methodological approach takes place in three stages. At the first stage, the depth of the analysis is justified. At the second stage, a dynamic analysis of concentration indicators, monopoly power, assessment of the level of entry barriers and market turbulence is carried out. At the third stage, regulatory legal acts that form a selective industrial policy in terms of the main instruments of influence on the industry are analyzed. The combination of methods allows us to draw conclusions about the effectiveness of the industrial policy tools used in terms of sustainable growth. The approbation of the methodological approach is carried out on the example of the agricultural machinery industry. The results of the dynamic industry analysis showed the lack of sustainable growth in the industry, a low level of competition, market coordination mechanisms. Dynamic normative analysis has shown the predominant use of direct subsidies as an instrument of industrial policy. This makes it possible to define the existing industrial policy as reactionary, and the measures taken are considered temporary and ineffective. The proposed methodological approach is universal and can be used to analyze other industrial markets.