Journal of Applied Economic Research
ISSN 2712-7435
Study of the Profit Distribution Dynamics of Mining and Manufacturing Enterprises in Russia in the Imperatives of Industrial Changes
Inna K. Shevchenko, Yuliya V. Razvadovskaya
Southern Federal University, Rostov on Don, Russia
Abstract
Dynamic transformations in the economic, technological, social and political contours of global development adds a number of weighty arguments in favor of industrial changes in the domestic economy, involving the development of its own production potential. The purpose of this article is to study the relationship between the dynamics of profit distribution and the affiliation of enterprises in the industrial sector of the economy to various technological groups of industries and forms of ownership. The authors formulate a hypothesis that in the context of industrial changes at the present stage of economic development, the distribution of profitability of companies in the industrial sector implies more intensive structural shifts in the manufacturing industries, mainly in the high-tech sector. The methodology used in this study makes it possible to identify key structural asymmetries in the process of industrial changes in the Russian economy, including in the system of distribution of ownership of capital between state and private companies. To do this, the article uses data on the profit of industrial companies before tax and net profit presented in SPARK for 225,148 privately owned companies, as well as 1,178 state-owned companies for the period from 2011 to 2020. The authors formulate a conclusion about the dominant role of profit in the process of structural inertia of industrial changes in the national economy under conditions of limited invariance. Unlike previous studies, the article proves the presence of features in the distribution of profitability of industrial sectors of various technological groups, as well as the relationship between the form of ownership, net profit and the level of manufacturability of production. The theoretical significance of the study lies in supplementing the main provisions of the theory of industrial development of the economy, including the development of theoretical foundations for assessing the key parameters of the development of industries. The practical significance of the results obtained in the study is determined by the possibility of their application in the system of state incentives for the development of high-tech industries.
Keywords
industrial changes; structural shift; institution of property; profit; mining sector; high-tech production; rent; industrial policy.
JEL classification
L16, H25References
1. Pogosov, I.A. (2012). Tendentsii vosproizvodstva v Rossii i problemy modernizatsii ekonomiki [Production trends in Russia and economic modernization problems]. Moscow, St Petersburg, Nestor-Istoriia. Available at: opac.ntbminprom.ru/opac/index.php. (In Russ.).
2. Fishman, L.G., Martyianov, V.S., Davydov, D.A. (2019). Rentnoe obshchestvo: v teni truda, kapitala i demokratii [Rental society: In the shadow of labour, capital, and democracy]. Moscow, Higher School of Economics. Available at: id.hse.ru/books/298351706.html. (In Russ.).
3. Pasinetti, L.L. (1981). Structural Change and Economic Growth. A Theoretical Essay on the Dynamics of the Wealth of Nations. Cambridge, Cambridge University Press. Available at: www.cambridge.org/ru/academic/subjects/economics/economic-development-and-growth/structural-change-and-economic-growth-theoretical-essay-dynamics-wealth-nations.
4. Nelson, R., Winter, S. (1982). An Evolutionary Theory of Economic Change. Cambridge, Massachusetts, Harvard University Press. DOI: 10.2307/3114818.
5. Arthur, W.B., Landesmann, M., Scazzieri, R. (1991). Dynamics and structures. Structural Change and Economic Dynamics, Vol. 2, 1–7. DOI: 10.1007/s11067-021-09519-8.
6. Landesmann, M.A., Scazzieri, R. (1990). Specifications of structure and economic dynamics. In: The Economic Theory of Structure and Change. Edited by M. Baranzini, R. Scazzieri. Cambridge, Cambridge University Press, 95–121. DOI: 10.1007/978-1-349-22728-0_9.
7. Foster, J. (1991). The institutionalist (evolutionary) school. In: A Modern Guide to Economic Thought: An Introduction to Comparative Schools of Thought in Economics. Edited by D. Mair, A.G. Miller, Aldershot, Edward Elgar. Available at: librarysearch.stthomas.edu/discovery/fulldisplay.
8. Dopfer, K., Potts, J. (2004). Evolutionary realism: A new ontology for economics. Journal of Economic Methodology, Vol. 11, Issue 2, 195–212. DOI: 10.1080/13501780410001694127.
9. Eaton, J., Kortum, S. (2002). Technology, geography, and trade. Econometrica, Vol. 70, Issue 5, 1741–1779. Available at: www.jstor.org/stable/3082019.
10. Swiecki, T. (2014). Determinants of structural change. Review of Economic Dynamics, Vol. 24, 95–131. DOI: 10.1016/j.red.2017.01.007.
11. Betts, C., Giri, R., Verma, R. (2017). Trade, reform, and structural transformation in South Korea. IMF Economic Review, Vol. 65, Issue 4, 745–791. DOI: 10.1057/s41308-017-0031-7.
12. The Oxford Handbook of Structural Transformation. Edited by C. Monga, J. Yifu Lin (2019). Oxford University Press. DOI: 10.1093/oxfordhb/9780198793847.013.1.
13. Henley, A. (1987). Labour's shares and profitability crisis in the US: recent experience and post-war trends. Cambridge Journal of Economics, Vol. 11, 315–330. Available at: www.jstor.org/stable/23597096.
14. Michl, T.R. (1998). The two-stage decline in U.S. nonfinancial corporate profitability, 1948–1986. Review of Radical Political Economics, Vol. 20, Issue 4, 1–22. Available at: econpapers.repec.org/article/saereorpe/v_3a20_3ay_3a1988_3ai_3a4_3ap_3a1-22.htm.
15. Wolff, E.N. (1992). Structural change and the movement of the rate of profit in the U.S. In: International Perspectives on Profitability and Accumulation. Edited by F. Moseley, E.N. Wolff. Aldershot, Edward Elgar. Available at: www.worldcat.org/title/international-perspectives-on-profitability-and-accumulation/oclc/24219243.
16. Dumenil, G., Lévy, D. (1990). Post depression trends in the economic rate of return for U.S. manufacturing. Review of Economics and Statistics, Vol. 72, No. 3, 406–413. DOI: 10.2307/2109348.
17. Torrini, R. (2005). Profit Share and returns on capital stock in Italy: the role of privatisations behind the rise of the 1990s. CEP Discussion Paper, No. 671. London, Centre for Economic Performance. Available at: www.researchgate.net/publication/4808211_Profit_Share_and_Returns_on_Capital_Stock_in_Italy_the_Role_of_Privatisations_Behind_the_Rise_of_the_1990s.
18. Glassman, J. (2001). Economic crisis in Asia: the case of Thailand. Economic Geography, Vol. 77, No. 2, 122–147. DOI: 10.2307/3594061.
19. Freeman, A. (1991). National accounts in value terms: the social wage and the profit rate in Britain 1950–1986. MPRA Paper 52760. Germany, University Library of Munich. Available at: econpapers.repec.org/paper/pramprapa/52760.htm.
20. Dumenil, G., Glick, M., Rangel, J. (1987). The rate of profit in the United States. Cambridge Journal of Economics, Vol. 11, 331–359. Available at: www.jstor.org/stable/23597097.
21. Moreton, D. (1991). Marxian crisis theory and the rate of profit in the UK Economy 1957–1985. In: Quantitative Marxism. Edited by P. Dunne. Cambridge, Blackwell. Available at: resistir.info/livros/quantitative_marxism.pdf.
22. Vander, V.R. (2002). Cost and profit efficiency of financial conglomerates and universal banks in Europe. Journal of Money, Credit, and Banking, Vol. 34, No. 1, 254–282. DOI: 10.1353/mcb.2002.0036.
23. Hauner, D. (2005). Explaining efficiency differences among large German and Austrian banks. Applied Economics, Vol. 37, Issue 9, 969–980. DOI: 10.1080/00036840500081820.
24. Mercan, M., Reisman, A., Yolalan, R., Emel, A.B. (2003). The effect of scale and mode of ownership on the financial performance of the Turkish banking sector: Results of a DEA-based analysis. Socio-Economic Planning Sciences, Vol. 37, Issue 3, 185–202. DOI: 10.1016/S0038-0121(02)00045-9.
25. Boardman, A.E., Vining, A.R. (1989). Ownership and performance in competitive environments: a comparison of the performance of private, mixed, and state-owned enterprises. The Journal of Law and Economics, Vol. 32, Issue 1, 1–33. Available at: econpapers.repec.org/article/ucpjlawec/v_3a32_3ay_3a1989_3ai_3a1_3ap_3a1-33.htm.
26. Vickers, J., Yarrow, G. (1991). Economic perspectives on privatization. Journal of Economic Perspectives, Vol. 5, Issue 2, 111–132. DOI: 10.1257/jep.5.2.111.
27. Megginson, W.L., Netter, J.M. (2001). From state to market: a survey of empirical studies on privatization. Journal of Economic Literature, Vol. 39, No. 2, 321–389. Available at: www.jstor.org/stable/2698243.
28. Wolf, C. (2009). Does ownership matter? The performance and efficiency of State oil Vs private oil (1987-2006). Energy Policy, Vol. 37, Issue 7, 2642–2652. DOI: 10.1016/j.enpol.2009.02.041.
29. Dewenter, K.L., Malatesta, P.H. (2001). State-owned and privately owned firms: an empirical analysis of profitability, leverage, and labour intensity. American Economic Review, Vol. 91, Issue 1, 320–334. DOI: 10.1257/aer.91.1.320.
30. Herrendorf, B., Rogerson, R., Valentinyi, Á. (2019). Growth and the Kaldor’s facts. Review, Federal Reserve Bank of St. Louis, Vol. 101, Issue 4, 259–276. DOI: 10.20955/r.101.259-76.
31. Laitner, J. (2000). Structural change and economic growth. The Review of Economic Studies, Vol. 67, No. 3, 545–561. Available at: www.jstor.org/stable/2566966.
32. Boppart, T. (2014). Structural change and the Kaldor facts in a growth model with relative price effects and non-gorman preferences. Econometrica, Vol. 82, Issue 6, 2167–2196. Available at: www.jstor.org/stable/43616910.
33. Lyakin, A.N. (2013). Strukturnye sdvigi v rossiiskoi ekonomike i promyshlennaia politika (The Structural Shifts in the Russian Economy and Industrial Policy). Vestnik Sankt-Peterburgskogo universiteta. Ekonomika (St Petersburg University Journal of Economic Studies,), No. 1, 39–52. Available at: economicsjournal.spbu.ru/article/view/2060. (In Russ.).
34. Varnavsky, V.G. (2019). Globalizatsiia i strukturnye sdvigi v mirovom proizvodstve (Globalization and structural changes in the world economy). Mirovaia ekonomika i mezhdunarodnye otnosheniia (World Eсonomy and International Relations), Vol. 63, No. 1, 25–33. DOI: 10.20542/0131-2227-2019-63-1-25-33. (In Russ.).
35. Rodionova, I.A. (2009). Promyshlennoe proizvodstvo regionov Rossii: strukturnye sdvigi (Industrial production of russian regions: structural shifts). Regionalnaia ekonomika: teoriia i praktika (Regional Economics: Theory and Practice), No. 21, 2–11. URL: cyberleninka.ru/article/n/promyshlennoe-proizvodstvo-regionov-rossii-strukturnye-sdvigi. (In Russ.).
About Authors
Inna Konstantinovna Shevchenko
Doctor of Economics, Rector of the Southern Federal University, Rostov-on-Don, Russia (344006, Rostov-on-Don, Bolshaya Sadovaya street, 105/42); ORCID 0000-0003-4157-9488; e-mail: ikshevchenko@sfedu.ru.
Yuliya Viktorovna Razvadovskaya
Candidate of Economics Sciences, Director of the Institute of Management in Economic, Environmental and Social Systems, Southern Federal University, Rostov-on-Don, Russia (344006, Rostov-on-Don, Bolshaya Sadovaya street, 105/42); ORCID 0000-0002-3831-6444; e-mail: yvrazvadovskaya@sfedu.ru.
For citation
Shevchenko I.K., Razvadovskaya Yu.V. Study of the Profit Distribution Dynamics of Mining and Manufacturing Enterprises in Russia in the Imperatives of Industrial Changes. Journal of Applied Economic Research, 2022, Vol. 21, No. 3, 576-603. DOI: 10.15826/vestnik.2022.21.3.020.
Article info
Received May 16, 2022; Revised July 14, 2022; Accepted August 12, 2022.
DOI: http://dx.doi.org/10.15826/vestnik.2022.21.3.020
Download full text article:
~2 MB, *.pdf
(Uploaded
28.09.2022)
Created / Updated: 2 September 2015 / 20 September 2021
© Federal State Autonomous Educational Institution of Higher Education «Ural Federal University named after the first President of Russia B.N.Yeltsin»
Remarks?
select the text and press:
Ctrl + Enter
Portal design: Artsofte
Contact us
Rector's Office
Rector, Dr. Victor Koksharov
Tel. +7 (343) 375-45-03, e-mail: rector@urfu.ru
Vice-Rector for International Relations, Dr. Maxim Khomyakov
Tel. +7 (343) 375-46-27, e-mail: Maksim.Khomyakov@urfu.ru