IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v10y2022i2p45-d743610.html
   My bibliography  Save this article

Management of the Russian Interregional Investment Distribution Using the Autonomous Expenditure Multiplier Model

Author

Listed:
  • Sergey Nikolaevich Silvestrov

    (Institute for Economic Policy and Problems of Economic Security, Financial University under the Government of the Russian Federation, 125167 Moscow, Russia)

  • Sergey Alekseevich Pobyvaev

    (Institute for Economic Policy and Problems of Economic Security, Financial University under the Government of the Russian Federation, 125167 Moscow, Russia)

  • Stanislav Borisovich Reshetnikov

    (Institute for Economic Policy and Problems of Economic Security, Financial University under the Government of the Russian Federation, 125167 Moscow, Russia)

  • Dmitrii Vladimirovich Firsov

    (Institute for Economic Policy and Problems of Economic Security, Financial University under the Government of the Russian Federation, 125167 Moscow, Russia)

Abstract

An effective and competitive investment policy requires improvements to the existing tools. The ongoing COVID-19 crisis requires understanding as to how the recovery processes should be implemented. This study aims to develop a model for determining the autonomous expenditure multiplier (AEM) values, considering the investment accelerator action. The scientific novelty consists of proving that the AEM is not only an effects enhancer of the government and private investment, but also a tool to specify on the regional industrial map of Russia where investment projects will allow significant economic growth. The work’s practical significance consists of determining the possibility of applying the AEM as a tool to improve investment efficiency. The key research method was paired linear regression analysis. Based on the developed model, the AEM values for the economies of the five Central Federal District regions are calculated. Additionally, authors provide an explanation on how AEM values correlate to regional economic specialization. For example, atypically low AEM values for Moscow can be explained by high daily workforce movement among Moscow and the Moscow region. The information support difficulties of the proposed model are defined, and the directions to overcome them are proposed. Empirical results show significant differences in the AEM values of the researched regions, and that the AEM as a management tool for interregional investment distribution will help to invest the limited resources of both the state and private businesses more effectively. Additionally, authors establish that the achieved results fall in line with real macroeconomic situations within the regions, which proves that the proposed model reflects real world processes. Primary beneficiaries and end users of the study are government agencies, state-owned corporations, and members of broader scientific community.

Suggested Citation

  • Sergey Nikolaevich Silvestrov & Sergey Alekseevich Pobyvaev & Stanislav Borisovich Reshetnikov & Dmitrii Vladimirovich Firsov, 2022. "Management of the Russian Interregional Investment Distribution Using the Autonomous Expenditure Multiplier Model," Economies, MDPI, vol. 10(2), pages 1-18, February.
    • Handle: RePEc:gam:jecomi:v:10:y:2022:i:2:p:45-:d:743610
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/10/2/45/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/10/2/45/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Burfisher,Mary E., 2017. "Introduction to Computable General Equilibrium Models," Cambridge Books, Cambridge University Press, number 9781107584686, June.
    2. Gabriel Chodorow-Reich & Laura Feiveson & Zachary Liscow & William Gui Woolston, 2012. "Does State Fiscal Relief during Recessions Increase Employment? Evidence from the American Recovery and Reinvestment Act," American Economic Journal: Economic Policy, American Economic Association, vol. 4(3), pages 118-145, August.
    3. Robert J. Barro & Charles J. Redlick, 2011. "Macroeconomic Effects From Government Purchases and Taxes," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(1), pages 51-102.
    4. Arogundade, Sodiq & Bila, Santos & Jan Derkacz, Arkadiusz, 2021. "Autonomous Expenditure Multipliers and Gross Value Added in South Africa," MPRA Paper 111115, University Library of Munich, Germany.
    5. Burfisher,Mary E., 2017. "Introduction to Computable General Equilibrium Models," Cambridge Books, Cambridge University Press, number 9781107132207, June.
    6. Kameda, Taisuke & Namba, Ryoichi & Tsuruga, Takayuki, 2021. "Decomposing local fiscal multipliers: Evidence from Japan," Japan and the World Economy, Elsevier, vol. 57(C).
    7. Raut, Dirghau & Raju, Swati, 2019. "Size of Expenditure Multipliers for Indian States: Does the Level of Income and Public Debt Matter?," MPRA Paper 104947, University Library of Munich, Germany.
    8. Marko Lovec & Luka Juvančič, 2021. "The Role of Industrial Revival in Untapping the Bioeconomy’s Potential in Central and Eastern Europe," Energies, MDPI, vol. 14(24), pages 1-20, December.
    9. Elkhan Richard Sadik-Zada & Wilhelm Loewenstein & Yadulla Hasanli, 2021. "Production linkages and dynamic fiscal employment effects of the extractive industries: input-output and nonlinear ARDL analyses of Azerbaijani economy," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 34(1), pages 3-18, April.
    10. Orhan Gokmen, 2021. "The Relationship between Foreign Direct Investment and Economic Growth: A Case of Turkey," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 13(7), pages 1-85, June.
    11. Arkadiusz J. Derkacz, 2020. "Autonomous Expenditure Multipliers and Gross Value Added," JRFM, MDPI, vol. 13(9), pages 1-18, September.
    12. Levis Petiho Numbu & Zhanna S. Belyaeva, 2021. "The relationship between foreign direct investment and GDP in Cameroon (2000–2020)," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 7(3), pages 200-209.
    13. Sergey Sylvestrov & Vladimir Bauer & Vladimir Eremin, 2018. "Estimation of the Dependence of the Investment Multiplier on the Structure of the Regional Economy," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 1463-1476.
    14. Elkhan Richard Sadik-Zada, 2021. "Addressing the growth and employment effects of the extractive industries: white and black box illustrations from Kazakhstan," Post-Communist Economies, Taylor & Francis Journals, vol. 33(4), pages 402-434, May.
    15. Ali, Syed Riaz Mahmood & Mensi, Walid & Anik, Kaysul Islam & Rahman, Mishkatur & Kang, Sang Hoon, 2022. "The impacts of COVID-19 crisis on spillovers between the oil and stock markets: Evidence from the largest oil importers and exporters," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 345-372.
    16. Arkadiusz J. Derkacz, 2020. "Fiscal, Investment and Export Multipliers and the COVID-19 Pandemic Slowdowns Uncertainty Factor in the First Half of 2020," Risks, MDPI, vol. 8(4), pages 1-21, November.
    17. Niftiyev, Ibrahim, 2020. "The De-industrialization Process In Azerbaijan: Dutch Disease Syndrome Revisited," EconStor Conference Papers 227485, ZBW - Leibniz Information Centre for Economics.
    18. Valerie A. Ramey & Sarah Zubairy, 2018. "Government Spending Multipliers in Good Times and in Bad: Evidence from US Historical Data," Journal of Political Economy, University of Chicago Press, vol. 126(2), pages 850-901.
    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. Sheremirov, Viacheslav & Spirovska, Sandra, 2022. "Fiscal multipliers in advanced and developing countries: Evidence from military spending," Journal of Public Economics, Elsevier, vol. 208(C).
    2. Emi Nakamura & Jón Steinsson, 2018. "Identification in Macroeconomics," Journal of Economic Perspectives, American Economic Association, vol. 32(3), pages 59-86, Summer.
    3. Wataru Miyamoto & Thuy Lan Nguyen & Dmitriy Sergeyev, 2018. "Government Spending Multipliers under the Zero Lower Bound: Evidence from Japan," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(3), pages 247-277, July.
    4. Dupor, Bill & Guerrero, Rodrigo, 2017. "Local and aggregate fiscal policy multipliers," Journal of Monetary Economics, Elsevier, vol. 92(C), pages 16-30.
    5. Viacheslav Sheremirov & Sandra Spirovska, 2015. "Output response to government spending: evidence from new international military spending data," Working Papers 15-9, Federal Reserve Bank of Boston.
    6. Bill Dupor & Rodrigo Guerrero, 2021. "The Aggregate And Local Economic Effects Of Government Financed Health Care," Economic Inquiry, Western Economic Association International, vol. 59(2), pages 662-670, April.
    7. Christopher Biolsi, 2019. "Local Effects of a Military Spending Shock: Evidence from Shipbuilding in the 1930s," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 32, pages 227-248, April.
    8. Li, Rong & Zhou, Yijiang, 2021. "Estimating local fiscal multipliers using political connections," China Economic Review, Elsevier, vol. 66(C).
    9. James Cloyne & Òscar Jordà & Alan M. Taylor, 2020. "Decomposing the Fiscal Multiplier," Working Paper Series 2020-12, Federal Reserve Bank of San Francisco.
    10. Valerie A. Ramey, 2019. "Ten Years after the Financial Crisis: What Have We Learned from the Renaissance in Fiscal Research?," Journal of Economic Perspectives, American Economic Association, vol. 33(2), pages 89-114, Spring.
    11. Pennings,Steven Michael, 2020. "Cross-Region Transfers in a Monetary Union : Evidence from the US and Some Implications," Policy Research Working Paper Series 9244, The World Bank.
    12. Miyazaki, Tomomi & Hiraga, Kazuki & Kozuka, Masafumi, 2024. "Stock market response to public investment under the zero lower bound: Cross-industry evidence from Japan," Journal of the Japanese and International Economies, Elsevier, vol. 71(C).
    13. Auerbach, Alan & Gorodnichenko, Yuriy & McCrory, Peter B. & Murphy, Daniel, 2022. "Fiscal multipliers in the COVID19 recession," Journal of International Money and Finance, Elsevier, vol. 126(C).
    14. Joonkyu Choi & Veronika Penciakova & Felipe Saffie, 2021. "Political Connections, Allocation of Stimulus Spending, and the Jobs Multiplier," FRB Atlanta Working Paper 2021-13, Federal Reserve Bank of Atlanta.
    15. Ruhollah Eskandari & Morteza Zamanian, 2023. "Heterogeneous responses to corporate marginal tax rates: Evidence from small and large firms," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 38(7), pages 1018-1047, November.
    16. Rüth, Sebastian K. & Simon, Camilla, 2022. "How do income and the debt position of households propagate fiscal stimulus into consumption?," Journal of Economic Dynamics and Control, Elsevier, vol. 143(C).
    17. Ethan Ilzetzki, 2024. "Learning by Necessity: Government Demand, Capacity Constraints, and Productivity Growth," American Economic Review, American Economic Association, vol. 114(8), pages 2436-2471, August.
    18. Marcus Roller, 2023. "Estimation of direct net effects of events," Tourism Economics, , vol. 29(6), pages 1577-1597, September.
    19. Balázs Zélity, 2022. "Permanent income shocks and inflation," Economics Bulletin, AccessEcon, vol. 42(2), pages 476-493.
    20. Cardi, Olivier & Restout, Romain, 2023. "Sectoral fiscal multipliers and technology in open economy," Journal of International Economics, Elsevier, vol. 144(C).

    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:gam:jecomi:v:10:y:2022:i:2:p:45-:d:743610. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.