The Role of External and Internal Markets in the Economic Growth Models of Belarus and Russia

The article analyzes the contribution of external and internal markets to the growth of real GDP and changes in the foreign trade balance of Belarus and Russia using methodology developed by the author, which takes into account the gross value added obtained by industries from final markets, both directly and as part of the production and sales chains. Statistical data and model tools of input–output tables were employed. Taking into account the positive impact of the domestic market on GDP growth and its negative impact on the foreign trade balance (when intermediate imports are used in the output of domestic products and when finished imports are consumed), the possibilities and limitations are shown for the model of growth attained by stimulating domestic demand in different structural conditions of the two countries. Understanding the potentials and limitations of the models implemented at the current stage by the two countries makes it possible to identify opportunities for combining state economic policies, to outline strategic solutions for mutually beneficial cooperation in order to accelerate growth rates, and ensure their sustainability.