Priority Selective Industrial Policy Instruments: Methodological Approach and Empirical Reasoning

The work is devoted to develop a methodological approach to the selection of selective industrial policy tools in accordance with the level and potential of development of individual industries and complexes, aimed at maintaining sustainable development in a highly turbulent environment. The research allowed us to propose the author’s classification of instruments of selective industrial policy, which is based on the principles of determining supportive and stimulating measures, as well as key production factors that form sustainable industrial development. The empirical study, presented within the framework of the case of agricultural machine building, revealed the prevalence of direct methods of selective industrial policy in the form of subsidies. The dynamic analysis of the industry production function presented for the period from 2012 to 2023 shows that the most significant factors in the formation of production results and sustainable development of the industry in this period are current assets (production factors) and labor remuneration (labor factor). At the same time, there are no significant changes in the structure of the production function, which allows us to speak about the supportive nature of the implemented instruments of selective industrial policy.