scholarly journals Investment policy of the state as a tool for economic growth of the country

2020 ◽  
Vol 18 (3) ◽  
pp. 245-254 ◽  
Author(s):  
Valentyna Makohon ◽  
Yurii Radionov ◽  
Iryna Adamenko
Keyword(s):  
Economic Growth ◽  
Capital Investment ◽  
Developed Countries ◽  
The State ◽  
Fixed Capital ◽  
Investment Policy ◽  
Raw Material ◽  
State Investment ◽  
Fixed Capital Investment ◽  
The Impact

The investment policy of the state is an important tool for diversifying the economy. This paper analyzes the share of capital investment in GDP, the index of fixed capital investment for 2015–2019, and assesses the investment policy determinants of the state of developed countries and emerging countries. Correlation-regression analysis methods were used to determine the relationship between real GDP, the share of industrial output in GDP, and the index of fixed capital investment in countries with economies in transformation. As a result, it was determined that in the vast majority of countries studied, the increase in investment in fixed assets contributes to the acceleration of economic growth, and the level of economic growth determines the investment potential of countries; that the heterogeneity of the impact of investment on the level of economic growth in countries with transformational economies is due to their raw material orientation, insufficient level of validity and predictability of the implemented investment policy of the state; the state’s investment policy is an important tool for ensuring macroeconomic stability and stimulating economic growth in a recession. Using the data of the panels for the period from 2015 to 2019, it is substantiated that the creation of conditions for macroeconomic balance will increase business activity of enterprises, which is the result of purposeful influence of state investment policy on economic processes by ensuring quality transformation and innovation of the national economy. The obtained results show that the level of influence of the state investment policy on the level of economic growth varies significantly depending on the level of development of financial institutions in the country and the infrastructure of the financial market.

scholarly journals ASSESSMENT OF THE IMPACT OF INCOME INEQUALITY ON ECONOMIC GROWTH IN RUSSIAN REGIONS

2021 ◽  
Vol 2 ◽  
pp. 106-110
Author(s):  
Rogneda Vasilyeva ◽  
Oleg Mariev ◽  
Elena Ignatieva ◽  
Alla Serkova
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Income Inequality ◽  
Capital Investment ◽  
Cultural Development ◽  
Russian Regions ◽  
Socio Economic Development ◽  
Per Capita ◽  
Fixed Capital Investment ◽  
The Impact

Inequality in the distribution of income of the population has a certain impact on different aspects of the economic and socio-cultural development of countries and regions. This inequality arises due to a number of factors as the current nature of the production specialization, the availability of production and economic infrastructure, the achieved level of development of the social sphere, socio-cultural, demographic, and other factors. The main objective of this study is to assess the nature and extent of the impact of income inequality in the Russian regions for the subsequent justification of the directions of socio-economic development. We conducted an econometric analysis of the impact of intraregional income inequality (the Gini coefficient), fixed capital investment per capita, and average per capita consumer spending on one of the main indicators of regional economic growth (GRP) per capita was carried out. The model is based on panel data for the period 2012-2018 for 85 regions of the Russian Federation. The results of the study confirm two of three hypotheses. As prospects for further research, it is proposed to consider the impact of inequality in the distribution of household income on economic growth for different groups of regions, including resource-type regions and regions with a predominance of manufacturing industries, as well as for leading regions and regions with a relatively low level of socio-economic development.

scholarly journals Defence Spending and Economic Growth: Re-examining the Issue of Causality for Pakistan and India

1995 ◽  
Vol 34 (4III) ◽  
pp. 1109-1117 ◽  
Author(s):  
Rizwan Tahir
Keyword(s):  
Economic Growth ◽  
Capital Investment ◽  
Growth Models ◽  
Empirical Studies ◽  
Positive Association ◽  
Developed Countries ◽  
Trade Offs ◽  
Defence Spending ◽  
Using Data ◽  
The Impact

What is the impact of carrying a heavy defence burden on the country’s economic development and growth? Views expressed in the literature1 argue that national defence is a consumption good which reduces economic growth by reducing saving and capital investment. A number of empirical studies have investigated the possible trade-offs between defence spending and other government expenditures like health and education. Empirical evidence concerning the relationship between defence spending and economic growth for developed countries is not inconsistent with the view that defence reduced the resources available for investment and hurts economic growth. See, for example, Benoit (1973). The evidence for developing countries, however, has not been entirely consistent or conclusive.2 Benoit (1978), using data on 44 less developed countries (LDCs) for the period 1950–65, found a strong positive association between defence spending and growth of civilian output per capita. Fredericksen and Looney (1982), using data for the period 1960–78 on a large cross-section, concluded that increased defence spending assists economic growth in resource-rich countries and not in resource-constraint ones. Using a sample of 54 LDCs pertaining to the period 1965–73, Lim (1983) found that defence spending hurts economic growth. Biswas and Ram (1986) in a sample of 58 LDCs for time-periods 1960–70 and 1970–77, using conventional and augmented growth models, concluded that military expenditures neither help nor hurt economic growth to any significant extent.

scholarly journals Perspectives of state investment policy in Russia

2018 ◽  
Vol 170 ◽  
pp. 01083 ◽  
Author(s):  
Anna Rumyantseva ◽  
Oleg Smeshko
Keyword(s):  
Economic Growth ◽  
Growth Rates ◽  
Process Development ◽  
The State ◽  
Investment Policy ◽  
Investment Climate ◽  
State Investment ◽  
Economic Growth Rates

The state investment policy is an important mechanism for the country economy development. The main elements of the state investment policy allow us to outline the ways of this process development in order to increase the economic growth rates and overcome the investment climate complexities.

scholarly journals Investment as a factor of economic security of the region

2019 ◽  
Vol 110 ◽  
pp. 02021 ◽  
Author(s):  
Dmitri Loginov ◽  
Elena Karanina
Keyword(s):  
Federal District ◽  
Economic Security ◽  
The State ◽  
Investment Policy ◽  
Insufficient Attention ◽  
State Investment ◽  
The Impact ◽  
Regional Governments

Investment in the economy determines the effectiveness of economic security. Currently, insufficient attention is paid to assessing the impact of investment processes on the formation of economic security in the region. The results of the study show that the uneven investment processes in different regions of the Volga Federal district may indicate a different level of economic security of individual regions. The authors of the study propose to improve the state investment policy of regional governments in the direction of increasing the contribution of investment processes to the economic security of the region.

scholarly journals Possibilities and challenges of inclusive economic growth in countries

2021 ◽  
Vol 244 ◽  
pp. 10039
Author(s):  
Mavluda Askarova ◽  
Toir Saddulaev ◽  
Bunyod Radjabov
Keyword(s):  
Economic Growth ◽  
Socioeconomic Development ◽  
Growth Index ◽  
Well Being ◽  
Developed Countries ◽  
The State ◽  
Inclusive Growth ◽  
The World ◽  
The Republic ◽  
The Impact

The purpose of the study of this topic is inclusive growth and inclusive economic growth in the territory of the Republic of Uzbekistan. Using the theoretical method of analysis, the results of the developed countries of the world, as well as the state of the economy of Central Asia, in particular the Republic of Uzbekistan, are analyzed. The observation method reveals the impact of inclusive economic growth on the standard of living and well-being of the world’s population. The article compares data on the impact of the global economic and financial crisis on the economies of the world and the Republic of Uzbekistan, which began in 2019, and its consequences are reflected on inclusive economic growth. Projections of social development up to 2030 are made, this development factor plays an important role in inclusive economic growth. The result of this study is the conclusion about the importance of the inclusive growth index, which can replace the GDP indicator. Index of inclusive analysis of information on various aspects of society. This index can also be used to predict the socioeconomic development of the state.

scholarly journals On the Relationship between Bank Lending Indicators and General Economic Indicators

2021 ◽  
Vol 91 ◽  
pp. 01011
Author(s):  
Yury Korobov ◽  
Sergey Bogomolov ◽  
Larisa Ilyina ◽  
Marina Plotnikova
Keyword(s):  
Economic Growth ◽  
Capital Investment ◽  
Bank Lending ◽  
Fixed Capital ◽  
Bank Loans ◽  
Economic Indicators ◽  
Physical Volume ◽  
Fixed Capital Investment ◽  
The Relationship ◽  
Legal Entities

One of the most important tasks of any state is to ensure stable economic growth. Banks can play an important role in performing this task, primarily by providing loans. The purpose of the study is to identify the relationship between indicators of banks’ lending activity and general indicators of economic development. Index of physical volume of GDP and index of physical volume of fixed capital investment were selected as resultant economic indicators, and growth rate of debt on bank loans (overall and by loan types), the share of loans in fixed capital investment, and the ratio of debt on bank loans to GDP were used as factor variables. The study of the dynamics of these indicators showed that the trajectory of economic indicators has a general tendency to decrease their values; the dynamics of economic indicators depends more on bank lending to legal entities than on lending to individuals, and often reflects the change in the share of loans in fixed capital investment with a time lag; economic growth is more strongly influenced by bank lending to legal entities than by lending to individuals. The revealed patterns indicate the need to develop a monetary policy aimed at stimulating corporate lending and moderate curbing consumer lending.

Fiscal powers of municipalities in Russia’s resource-rich regions and fixed capital investment

2020 ◽  
pp. 129-146
Author(s):  
Evgeny N. Timushev
Keyword(s):  
Economic Development ◽  
Capital Investment ◽  
Fiscal Decentralization ◽  
Local Level ◽  
Private Investment ◽  
Optimal Level ◽  
General Purpose ◽  
Fixed Capital ◽  
Fixed Capital Investment ◽  
The Impact

The article considers the nature and limits of the impact local fiscal decentralization exerts on private fixed capital investments in resource-rich Russia’s regions. The relevance of this topic is due, firstly, to the fact that sufficient expenditure and revenue powers at the local level ensure sustainable economic development, and secondly, the lack of research on relationship between investments and local fiscal decentralization in Russia. The study confirms the existence of an inverted U-shaped curve in the investment-decentralization association for the group of resource-rich regions as well as the superiority of revenue decentralization over expenditure decentralization in terms of its impact on economic development. For 2009—2016, investments were the highest when local fiscal decentralization was 46—47% and 43—51% in expenditure and revenue aspects, respectively (for Russia as a whole, 35—36% and 33—34%). Tax revenues in those figures do not exceed 30 p.p., the rest is occupied by earmarked grants (subsidies) and, especially, general-purpose grants (“dotatsii”). The excess of the optimal level of revenue decentralization over the expenditure one in resource-rich regions is explained by drivers of relatively large local powers there — less dependence on federal transfers, low regional tax burden, and greater elasticity of regional fiscal policy to external factors. The overall excess of optimal levels in comparison to Russia as a whole is explained by high local demand for both differentiation of expenditures and intraregional intergovernmental redistribution in those regions. Reduction of fiscal decentralization for 2008—2018 curbed private investment. The greatest losses were incurred by lack of revenue decentralization in the resource-rich regions, which could have reached more than 80% of the median investments.

Towards New Policy Incentives for Fixed Capital Investment and Technological Upgrades in Russia

2011 ◽  
pp. 43-56
Author(s):  
A. Apokin
Keyword(s):  
Economic Policy ◽  
Capital Investment ◽  
Empirical Studies ◽  
Fixed Capital ◽  
Policy Framework ◽  
Private Companies ◽  
Russian Economy ◽  
Technological Modernization ◽  
Fixed Capital Investment ◽  
Policy Incentives

The paper approaches the problem of private fixed capital underinvestment in Russia. The author uses empirical studies of the Russian economy and cases of successful technological modernization to outline several groups of disincentives for private companies to perform fixed capital investment in Russia. To counter these constraints, a certain incentive-based economic policy framework is developed.

Reducing the Risks of the Financial Sector to Ensure Sustainable Growth of the Russian Еconomy

2019 ◽  
Vol 12 (3) ◽  
pp. 86-92
Author(s):  
T. I. Minina ◽  
V. V. Skalkin
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Financial Sector ◽  
Developed Countries ◽  
Sustainable Growth ◽  
Necessary Condition ◽  
Real Sector ◽  
Financial Instruments ◽  
The Real ◽  
The Impact

Russia’s entry into the top five economies of the world depends, among other things, on the development of the financial sector, being a necessary condition for the economic growth of a developed macroeconomic and macro-financial system. The financial sector represents a system of relationships for the effective collection and distribution of economic resources, their deployment according to public demand, reducing the risk of overproduction and overheating of the economy.Therefore, the subject of the research is the financial sector of the Russian economy.The purpose of the research was to formulate an approach to alleviating the risks of increasing financial costs in the real sector of the economy by reducing the impact of endogenous risks expressed as financial asset “bubbles” using the experience of developed countries in the monetary policy.The paper analyzes a macroeconomic model applied to the financial sector. It is established that the economic growth is determined by the growth and, more important, the qualitative development of the financial sector, which leads to two phenomena: overproduction in the real sector and an increase in asset prices in the financial sector, with a debt load in both the real and financial sectors. This results in decreasing the interest rate of the mega-regulator to near-zero values. In this case, since the mechanisms of the conventional monetary policy do not work, the unconventional monetary policy is used when the mega-regulator buys out derivative financial instruments from systemically important institutions. As a conclusion, given deflationally low rates, it is proposed that the megaregulator should issue its own derivative financial instruments and place them in the financial market.

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