The Phenomenon of Hybrid State Capitalism in Emerging Market Economies: Present and Future
Arkady Martynov
Arkady Martynov, Institute for Social Development & Institute of Economics (Russian Academy of Sciences), Moscow, Russia.
Manuscript received on 01 May 2022 | Revised Manuscript received on 08 May 2022 | Manuscript Accepted on 15 May 2022 | Manuscript published on 30 November 2023 | PP: 24-33 | Volume-2 Issue-1, May 2022 | Retrieval Number: 100.1/ijef.B2536112222 | DOI : 10.54105/ijef.B2536.052122
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Abstract: The actual and complex topic of the transformation of a number of countries with emerging markets directly connects with the phenomenon of the ongoing formation of a new type of state capitalism. This study contributes to an increasingly relevant research concerning the problem of new state capitalism in relation to emerging market economies. Unlike referent previous publications, the object of the study presents transformation not individual national economies, but their conglomerate characterized by the prevalence of the state-capitalist order. A retrospective of the transformation of the entire enclave of emerging market econ-omies in a large number of countries has briefly presented. On this ground, the process of the reproduction of economic systems, distinguished by a hybrid structure with a prevailing state-capitalist order, in a separate conglomerate of post-developing and after socialist countries has analyzed in the last period. The fol-lowing main hypothesis has been verified: the relatively low cost of productive capital, labor, and especially primary resources, which distinguished the economies of hybrid state capitalism, displays in the inertial growth of production capital and employment, associ-ated with an accelerated increase in output and profit. Based on the empirical available evaluations, with regard to the conglomerate of considered national economies the most significant fundamental competitive advantage presents still the preservation of a relatively low cost of production factors. By the author’s argumentation, a vision of the prospect for the transformation of such national economies has supposed. The final conclusion concerns the possibility of successful adaptation of these economic systems to the positive fundamental changes, especially including those associated with the transition to sustainable overall social development.
Keywords: Competitive Advantage, Emerging Markets, National Economies, State-Capitalist Order
Scope of the Article: Corporate Finance