Models of economic development under unequal competition in the world market

• Mikhail S. Sergienko

  Mikhail S. Sergienko. Pacific National University. Khabarovsk. Russia

• Alexander E. Zubarev

  Alexander E. Zubarev. Pacific National University. Khabarovsk. Russia

• Krasova E.V.

  Elena V. Krasova. Vladivostok State University. Vladivostok. Russia

The article deals with issues of development of economies that are under sanctions restrictions, which create unequal competition conditions. For such economies, it’s very important to choose a development model in accordance with foreign trade policy: it can be export-oriented, import substitution models, or a combination of both. The purpose of the study is to identify the features of export-oriented and import-
substituting models of economic development under unequal competition in the world market. The article studies theoretical basics for these models, including for unequal competition conditions in the world market. The Iran and Russia examples show specifics of their development, manifested in foreign trade flows reorientation and activation of their own production in key industries. Both require significant efforts and realized under strong short-term shocks. However, the export orientation and import substitution combination is the best possible development option in unequal competition conditions, because it can compensate a significant part of losses from sanctions restrictions in the long-term period.
Keywords: economic development, sanctions restrictions, development models, foreign trade policy, unequal competition, world market, export orientation, import substitution.