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Investment and Economic Growth: the Case of the Russian Far East

Author

Listed:
  • Belousova, A.

    (Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences, Khabarovsk, Russia)

  • Isaev, A.

    (Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences, Khabarovsk, Russia)

Abstract

The article describes the characteristics of investment processes in the Far East and their relationship with the dynamics of the macro-region's gross product. Trends in investment dynamics are assessed with the identification of individual periods. The time-limited effect of investment multipliers is shown in connection with the concentration of investment flows in the resource-producing sectors of the regional economy and in the sector of large national infrastructure facilities' construction. The investment function for the Far East is estimated on the basis of which it is shown that the accelerated development of the economy of the Far East (exceeding the national growth rate by about 1,5% per year) until 2025 will require an increase in the volume and rate of investment (while maintaining their structure). These amounts are not adequate to the real investment potential not only of the region and state budgets, but also of the interregional resource allocation system.

Suggested Citation

  • Belousova, A. & Isaev, A., 2018. "Investment and Economic Growth: the Case of the Russian Far East," Journal of the New Economic Association, New Economic Association, vol. 38(2), pages 164-170.
    • Handle: RePEc:nea:journl:y:2018:i:38:p:164-170
    as

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    References listed on IDEAS

    as
    1. Dale Jorgenson, 1967. "The Theory of Investment Behavior," NBER Chapters, in: Determinants of Investment Behavior, pages 129-175, National Bureau of Economic Research, Inc.
    2. L.V. Melnikova (Lolita@ieie.nsc.ru), 2010. "Assessing the geography of investment flows," Journal "Region: Economics and Sociology", Institute of Economics and Industrial Engineering of Siberian Branch of RAS, vol. 3.
    3. Pavel Minakir, 2017. "«Turn to the East» Policy: Expectations and Reality," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 1016-1029.
    4. Robert Ferber, 1967. "Determinants of Investment Behavior," NBER Books, National Bureau of Economic Research, Inc, number ferb67-1.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    investment; economic growth; Russian Far East; infrastructure; investment function;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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