IDEAS home Printed from https://ideas.repec.org/a/aiy/jnjaer/v19y2020i4p419-440.html
   My bibliography  Save this article

Influence of Expenditures in the Development of the Digital Economy on the Volume of Russia's GDP

Author

Listed:
  • S.P. Petrov
  • M.P. Maslov
  • A.I. Karpovich

Abstract

The purpose of this work is to assess the effectiveness of achieving planned investment indicators within the framework of the national program «Digital Economy of the Russian Federation» and the adequacy of investments in the digitalization of the economy to form positive dynamics of Russia's GDP. The hypothesis is tested about the presence of influence, along with the indicators of the functioning of traditional sectors of the economy, of indicators of digital sectors of the economy and indicators of investments in digital transformation in Russia. The methodology for such calculation is based on the theory of elasticity, which can be used to analyze the efficiency of resources (investments) in the case of alleged underfunding of a certain economic entity, that took place in the case of the specified program. This technique involves the construction of a Cobb-Douglas production function. The data of Russian statistical compilations in the regional context for the period from 2015 to 2018 were used as an information base for calculating and constructing a production function. Within the adopted specification of the cross-sectional regression model, the parameters of the production function were determined for each year within the specified period. Also, the predicted values ​​of the indicators of the used information base for 2019 and 2020 were determined using the linear regression method, and, proceeding from them, parameters of the production function were determined. Due to the incompatibility of data on the indicator of internal costs for the development of the digital economy in the program «Digital Economy of the Russian Federation» and the statistical indicator of the cost of information and communication technologies, it was necessary to calculate the ratio between these indicators. The solution to this problem showed that these indicators are in good agreement with each other with a difference of only a few percent. The final result of the study is an assessment of GDP losses while maintaining the dynamics of digitalization costs observed in 2015-2018, suggesting continuation of the trend towards the Digital Economy of the Russian Federation program being underfunded in 2019 and 2020.

Suggested Citation

  • S.P. Petrov & M.P. Maslov & A.I. Karpovich, 2020. "Influence of Expenditures in the Development of the Digital Economy on the Volume of Russia's GDP," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 19(4), pages 419-440.
    • Handle: RePEc:aiy:jnjaer:v:19:y:2020:i:4:p:419-440
    DOI: http://dx.doi.org/10.15826/vestnik.2020.19.4.020
    as

    Download full text from publisher

    File URL: https://journalaer.ru//fileadmin/user_upload/site_15934/2020/01_Petrov_Maslov_Karpovich.pdf
    Download Restriction: no
    File URL: https://libkey.io/http://dx.doi.org/10.15826/vestnik.2020.19.4.020?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Philippe Aghion & John Van Reenen & Luigi Zingales, 2013. "Innovation and Institutional Ownership," American Economic Review, American Economic Association, vol. 103(1), pages 277-304, February.
    2. Nina Czernich & Oliver Falck & Tobias Kretschmer & Ludger Woessmann, 2011. "Broadband Infrastructure and Economic Growth," Economic Journal, Royal Economic Society, vol. 121(552), pages 505-532, May.
    3. María García-Vega & Patricia Hofmann & Richard Kneller, 2012. "The Internationalisation of R&D and the Knowledge Production Function," Discussion Papers 12/02, University of Nottingham, GEP.
    4. Noha Mostafa & Walaa Hamdy & Hisham Alawady, 2019. "Impacts of Internet of Things on Supply Chains: A Framework for Warehousing," Social Sciences, MDPI, vol. 8(3), pages 1-10, March.
    5. A. A. Aletdinova & A. V. Koritsky, 2020. "Comparative Analysis of the Return on Human Capital in the European and Asian Regions of Russia," Regional Research of Russia, Springer, vol. 10(2), pages 213-219, April.
    6. Rinaldo Evangelista & Paolo Guerrieri & Valentina Meliciani, 2014. "The economic impact of digital technologies in Europe," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 23(8), pages 802-824, November.
    7. Dougherty, Christopher, 2016. "Introduction to Econometrics," OUP Catalogue, Oxford University Press, edition 5, number 9780199676828.
    8. Zoltan Acs & David Audretsch & Pontus Braunerhjelm & Bo Carlsson, 2012. "Growth and entrepreneurship," Small Business Economics, Springer, vol. 39(2), pages 289-300, September.
    9. Kraemer, Kenneth L. & Dedrick, Jason, 1994. "Payoffs from investment in information technology: Lessons from the Asia-Pacific region," World Development, Elsevier, vol. 22(12), pages 1921-1931, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stiebale, Joel, 2016. "Cross-border M&As and innovative activity of acquiring and target firms," Journal of International Economics, Elsevier, vol. 99(C), pages 1-15.
    2. Ajoy Ketan Sarangi & Rudra Prakash Pradhan, 2020. "ICT infrastructure and economic growth: a critical assessment and some policy implications," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 47(4), pages 363-383, December.
    3. Ponomareva, E., 2021. "Digitalization as a driver of economic growth: Does only infrastructure matters?," Journal of the New Economic Association, New Economic Association, vol. 51(3), pages 51-68.
    4. Lawrence Jin & Jang C. Jin, 2014. "Internet Education and Economic Growth: Evidence from Cross-Country Regressions," Economies, MDPI, vol. 2(1), pages 1-17, March.
    5. Maria Garcia-Vega & Oscar Vicente-Chirivella, 2019. "R&D and firm resilience during bad times," Discussion Papers 2019-13, University of Nottingham, GEP.
    6. MUGABE Roger & Liu Shulin & Byringiro Enock, 2021. "The Impact of ICT Investment and Diffusion on Economic Growth: Empirical Evidence from Rwanda," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 7(4), pages 23-36, October.
    7. Ndubuisi, Gideon & Otioma, Chuks & Tetteh, Godsway Korku, 2021. "Digital infrastructure and employment in services: Evidence from Sub-Saharan African countries," Telecommunications Policy, Elsevier, vol. 45(8).
    8. Tisdell, Clem, 2014. "Information Technology's Impacts on Productivity, Welfare and Social Change: Second Version," Economic Theory, Applications and Issues Working Papers 195701, University of Queensland, School of Economics.
    9. Rabab Benotsmane & György Kovács & László Dudás, 2019. "Economic, Social Impacts and Operation of Smart Factories in Industry 4.0 Focusing on Simulation and Artificial Intelligence of Collaborating Robots," Social Sciences, MDPI, vol. 8(5), pages 1-20, May.
    10. Leopoldo Fergusson & Carlos Molina, 2020. "Facebook Causes Protests," HiCN Working Papers 323, Households in Conflict Network.
    11. Lal, K., 1999. "Information Technology and Exports: A Case Study of Indian Garments Manufacturing Enterprises," Discussion Papers 280137, University of Bonn, Center for Development Research (ZEF).
    12. Timo Korkeamaki & Danielle Xu, 2015. "Institutional Investors and Foreign Exchange Risk," Quarterly Journal of Finance (QJF), World Scientific Publishing Co. Pte. Ltd., vol. 5(03), pages 1-33, September.
    13. Parvathi Jayaprakash & R. Radhakrishna Pillai, 2022. "The Role of ICT for Sustainable Development: A Cross-Country Analysis," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(1), pages 225-247, February.
    14. Hyoseok (David) Hwang, 2023. "The real effects of local mutual funds: Evidence from corporate innovation," International Review of Finance, International Review of Finance Ltd., vol. 23(2), pages 272-300, June.
    15. Yonggu Kim & Keeyoung Shin & Joseph Ahn & Eul-Bum Lee, 2017. "Probabilistic Cash Flow-Based Optimal Investment Timing Using Two-Color Rainbow Options Valuation for Economic Sustainability Appraisement," Sustainability, MDPI, vol. 9(10), pages 1-16, October.
    16. Martha Jiménez García, 2019. "The Impact of Information and Communication Technologies on Economic Growth in Mexico," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 9(2), pages 11-22, February.
    17. Yi Li, 2020. "Internet Development and Structural Transformation: Evidence from China," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 10(1), pages 1-8.
    18. Ren, Siyu & Hao, Yu & Xu, Lu & Wu, Haitao & Ba, Ning, 2021. "Digitalization and energy: How does internet development affect China's energy consumption?," Energy Economics, Elsevier, vol. 98(C).
    19. Oliver Falck & Constantin Mang & Ludger Woessmann, 2018. "Virtually No Effect? Different Uses of Classroom Computers and their Effect on Student Achievement," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 80(1), pages 1-38, February.

    More about this item

    Keywords

    digital economy; production function; expenditures on digital economy development; expenditures effectiveness;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aiy:jnjaer:v:19:y:2020:i:4:p:419-440. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Natalia Starodubets (email available below). General contact details of provider: https://edirc.repec.org/data/seurfru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.