scholarly journals Global trends and national goals: Russia approaches a new model of economic growth

2019 ◽  
Vol 5 (1) ◽  
pp. 27-45
Author(s):  
Vladimir A. Mau
Keyword(s):  
Economic Growth ◽  
Economic Policy ◽  
Social Performance ◽  
Supply Side ◽  
Demand Side ◽  
Institutional Reforms ◽  
Global Trends ◽  
Growth Policy ◽  
Current Concern ◽  
Fiscal And Monetary Policy

This paper deals with global trends and their influence on Russian economic and social performance. A new economic crisis is looming, and the lack of institutional reforms, which were put on the agenda by the crisis of 2008–2009, is a source of current concern. In 2018 Russian authorities announced a set of national goals and projects as the central point of social and economic policy for 2018–2024. The new economic growth policy includes the shift from the demand-side growth model to the supply-side one, broad implementation of project methods in economic policy, and continuation of conservative fiscal and monetary policy.

National goals and model of economic growth: New in the Russian socio-economic policy of 2018—2019

2019 ◽  
pp. 5-28 ◽  
Author(s):  
Vladimir A. Mau
Keyword(s):  
Economic Growth ◽  
Economic Policy ◽  
Supply Side ◽  
Demand Side ◽  
Institutional Reforms ◽  
Global Trends ◽  
Developed Economies ◽  
Growth Policy ◽  
Social And Economic Development ◽  
Fiscal And Monetary Policy

The paper deals with Russian social and economic development in the context of global trends. New economic crisis is looming ahead, but developed economies do not have sufficient fiscal and monetary instruments to mitigate it. The lack of institutional reforms, which were put on agenda by the crisis of 2008—2009, is another source of experts’ concerns. Russian authorities have announced a set of national goals and projects as the central point of social and economic policy for 2018—2024. The new economic growth policy includes the shift from the demand-side growth model to the supply-side one, broad implementation of project methods in economic policy, and continuation of conservative fiscal and monetary policy.

scholarly journals Macroeconomics of growth

2019 ◽  
pp. 59-91
Author(s):  
Deepak Nayyar
Keyword(s):  
Economic Growth ◽  
Degrees Of Freedom ◽  
Policy Instruments ◽  
High Growth ◽  
Supply Side ◽  
Demand Side ◽  
Macroeconomic Policies ◽  
Government Deficits ◽  
Inflation Rates ◽  
Investment Growth

Economic growth over fifty years in the Asian-14 has been stunning. Investment and savings, which rose rapidly, were the main drivers of growth. Education was also a sustained driver of growth on the supply-side. From the demand-side, growth was primarily private-consumption-expenditure led and investment led. The interaction between the supply-side and the demand-side suggests a virtuous circle of cumulative causation, where rapid investment growth coincided in time with rapid export growth, leading to rapid GDP growth. In macroeconomic management, the successful countries did not follow orthodox prescriptions of balanced budgets and price stability. Their primary macroeconomic objectives were economic growth and employment creation. Their macroeconomic policies were also more versatile in their use of policy instruments. Their success in maintaining high growth rates increased their degrees of freedom, which enabled them to finance government deficits and raise sustainable levels of government borrowing, while making higher inflation rates politically more acceptable, which would not have been possible if economic growth was slow.

scholarly journals Reflections on neo-Kaleckian growth regimes: a Marxian reproduction perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Feng Zhao ◽  
Jiahe Tian ◽  
Yuchen Duan
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Income Distribution ◽  
Technological Progress ◽  
Supply Side ◽  
Demand Side ◽  
Content Type ◽  
The Impact ◽  
Kaleckian Model

PurposeThe neo-Kaleckian model follows the ideas of Marx, Keynes and Kalecki, that investment is a key influencing factor in the dynamics of the capitalist mode of production. Through the discussion of different forms of investment decision function, this paper constructs the analysis framework of wage-led and profit-led economic growth regimes.Design/methodology/approachThe model has become an important theoretical paradigm for current Western heterodox economists regarding the research on the impact of functional income distribution on economic growth, and it has a very large impact on both theoretical and empirical research. Starting from Marx's reproduction theory, this article discusses the theoretical shortcomings of the neo-Kaleckian growth regime model.FindingsThis paper mainly focuses on three aspects: (1) the ideological legacy of “Smith's Dogma”; (2) neglecting the restrictions on income distribution from the organic composition of capital and the surplus value rate; (3) technological progress and the formation of a new long economic wave.Originality/valueThe authors believe that the neo-Kaleckian model unilaterally emphasizes the demand-side factors in the economy and, unconsciously or not, ignores the role of the supply-side, which makes it encounter certain limitations in explaining long-term growth. Even if some empirical conclusions are employed to bridge functional income distribution and technological progress, there is still a lack of a theoretical basis for accurately describing long-term economic changes using this model. In order to better promote high-quality economic development and accelerate the formation of a new pattern of economic development in which the domestic large-scale cycle is the mainstay and the domestic and international double cycles promote each other, the authors need to adopt a policy combination with the supply-side as the main and the demand-side as the supplement, and to work from both sides.

Economic growth and the politics of entitlement

2009 ◽  
Vol 55 ◽  
pp. 97-125
Author(s):  
Robin Osborne
Keyword(s):  
Economic Growth ◽  
Human Nature ◽  
Supply Side ◽  
Aggregate Productivity ◽  
Demand Side ◽  
The Face ◽  
Minimum Number ◽  
Per Capita ◽  
Default Assumption ◽  
Over Time

Discussions of economic growth in antiquity have been primarily concerned with whether or not it occurred. Can we, from the array of unsystematic and often random information we have about individual and community wealth, and in the face of our very considerable ignorance about even such basic matters as population levels, find ways of measuring either aggregate or per capita growth? The second focus of scholarly energy has been on how growth might have been achieved, on levels of productivity and what limited them, on how institutions might have impeded or facilitated growth, and on the degree to which barriers may have been deliberately removed over time and growth consciously encouraged. This paper is not directly interested in either of those sets of questions. It is interested in who wanted growth in the first place.The default assumption in discussions of growth often seems to be, at least implicitly, that it is brought about either by need or by greed. The desire of individuals to satisfy their needs more fully leads to an increase in, at the very least, aggregate productivity, and might be expected inevitably to drive growth from the supply side. The desire of individuals to increase their consumption drives growth from the demand side. The default assumptions tend to stop there, as ifwhat counts as need is absolute, a matter of a certain minimum number of calories or ‘wheat equivalent’ a day, and as if greed is simply part of human nature.

scholarly journals Structural change and economic transformation

2019 ◽  
pp. 92-114
Author(s):  
Deepak Nayyar
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Structural Transformation ◽  
Weak Link ◽  
Economic Transformation ◽  
Supply Side ◽  
Demand Side ◽  
Services Sector ◽  
Productivity Increase ◽  
Growth Promoting

Development in Asia has been associated with a structural transformation of economies. In this process, economic growth drove structural change from the demand-side as incomes rose and production activities followed, while structural change drove economic growth from the supply-side as labour moved from low-productivity to higher-productivity activities. Such labour transfer between sectors was growth-promoting in earlier stages, while productivity increase within sectors was growth-promoting in later stages. There was an exit of labour from agriculture everywhere, while the services sector progressively became the largest employer, with the highest output-share, across Asia. The process of structural transformation remains incomplete. In many countries it is necessary to address the neglect of agriculture and renew the emphasis on manufacturing, just as it is essential to exploit the synergies between manufacturing and services. Economic growth cannot be sustained and structural transformation cannot be completed even if one of three sectors is a weak link in the chain.

scholarly journals DAMPAK INFLASI TERHADAP PERTUMBUHAN EKONOMI DI INDONESIA

2012 ◽  
Vol 1 (2) ◽  
pp. 123
Author(s):  
Doni Satria
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Inflation Rate ◽  
Output Growth ◽  
The Other ◽  
Annual Data ◽  
Supply Side ◽  
Demand Side ◽  
Long Run ◽  
Causality Relationship

The long run relationship between inflation and economic growth has been recognized by macroeconomist in the last three decades. For developing countries inflation effect on economic growth is more supply side phenomena than demand side or economic fluctuation (Basu, 2000). On the other hand stable and low inflation rate in the long run will promote higher output growth. I found significance two way causality between inflation and growth in Indonesia. The result has shown a non linier causality relationship from inflation to economic growth using Indonesian annual data from 1981 to 2010. The data reveals there is long run non linier relationship between inflation and growth.

Structural Change and the Role of Demand

2021 ◽  
pp. 95-112
Author(s):  
Ricardo Azevedo Araujo ◽  
Joanílio Rodolpho Teixeira
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Productivity Growth ◽  
Technological Progress ◽  
Structural Changes ◽  
Supply And Demand ◽  
Supply Side ◽  
Demand Side ◽  
Sector Model

Structural economic dynamics is an approach that provides insights into the process of structural change, offering a synthesis between traditional supply and demand views of economic growth, with the supply side characterized by technological progress and the demand side driven by the Engel’s law. However, adequately considering structural change requires a framework for more fully accounting for the role of demand, and not leaving it as merely exogenous. With this inquiry dimensions of endogenous patterns of demand are selectively embedded in a Pasinetti multi-sector model, thus rendering structural changes endogenous. This stream of research provides a more inclusive and comprehensive panorama of the role of demand for structural change, connecting the evolving patterns of the demand with productivity growth.

Price Distortions, Exports, and Economic Growth: Evidence from the Non-Oil Sectors of Nigeria

2013 ◽  
Vol 3 (1) ◽  
pp. 1-15
Author(s):  
Benedict N Akanegbu
Keyword(s):  
Economic Growth ◽  
Production Function ◽  
Aggregate Demand ◽  
Negative Influence ◽  
Supply Side ◽  
Demand Side ◽  
Model Based ◽  
Oil Exports ◽  
Price Distortions

This study examines the effects of price distortions on output in the non-oil sectors of the Nigerian economy. Specifically, the study tests the hypothesis: that price distortions are inversely related to non-oil output on the supply side; and also inversely related to the aggregate demand component such as non-oil exports on the demand side. The study adopts a model based on a modified neoclassical production function where non-oil exports are taken as production input. The analysis confirms the view that price distortions have significant negative influence on the non-oil sectors of the Nigerian economy.

Economic Policy in 2007: Success and Risks

2008 ◽  
pp. 4-25 ◽  
Author(s):  
V. Mau
Keyword(s):  
Economic Growth ◽  
Economic Policy ◽  
Law Enforcement ◽  
Institutional Reforms ◽  
Investment Boom

Economic growth and investment boom should not shadow the lack of institutional reforms, emerging fiscal populism as well as inefficiency of law enforcement system. The important forthcoming problem is the possibility of macroeconomic destabilization as a result of global depression. The current Russian economic policy is concentrated on stimulating economic growth (at any price) while it should now pay more attention to anti-cyclical measures. Another challenge for stability will come from inflation.

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