INTRA-INDUSTRY FACTORS OF PROGRESS IN THE INTERNATIONAL DIVISION OF LABOR
The study aims to determine the factors that differentiate the spatial structure of the international division of labor (IDL) in various industries and to compare the results with modern theories in economic geography. After introducing a general model of the international trade mechanism the author describes key factors that transform its structure. The reconst a country's position in the IDL system of particular industry is determined by a sector of the industrial value-adding chain the country is specializing in, and by a market niche of the national product at the world market. Both the sector and the niche are shaped to a great extent by the state industrial policy. Therefore the changing list and parameters of available sectors and niches in combination with the state sectoral policy shape the IDL dynamics within particular industry. The conclusions are illustrated by examples from automotive, shipbuilding and other industries.