IDEAS home Printed from https://ideas.repec.org/a/nea/journl/y2018i38p164-170.html
   My bibliography  Save this article

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

    Download full text from publisher

    File URL: http://www.econorus.org/repec/journl/2018-38-164-170r.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robert Ferber, 1967. "Determinants of Investment Behavior," NBER Books, National Bureau of Economic Research, Inc, number ferb67-1, October.
    2. Dale Jorgenson, 1967. "The Theory of Investment Behavior," NBER Chapters, in: Determinants of Investment Behavior, pages 129-175, National Bureau of Economic Research, Inc.
    3. 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.
    4. 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.
    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. Schimmelpfennig, Axel, 1998. "The celtic tiger faces the factor price frontier: Labour market adjustment in Ireland," Kiel Working Papers 855, Kiel Institute for the World Economy (IfW Kiel).
    2. Krysiak, Frank C., 2006. "Stochastic intertemporal duality: An application to investment under uncertainty," Journal of Economic Dynamics and Control, Elsevier, vol. 30(8), pages 1363-1387, August.
    3. Jorge Navas Rodenes & Jesus Marin Solano, 2006. "A comment on the cost of capital for investments with non-homogeneous components," Working Papers in Economics 146, Universitat de Barcelona. Espai de Recerca en Economia.
    4. Diao, Xinshen & McMillan, Margaret, 2018. "Toward an Understanding of Economic Growth in Africa: A Reinterpretation of the Lewis Model," World Development, Elsevier, vol. 109(C), pages 511-522.
    5. Baldwin, Elizabeth & Cai, Yongyang & Kuralbayeva, Karlygash, 2020. "To build or not to build? Capital stocks and climate policy∗," Journal of Environmental Economics and Management, Elsevier, vol. 100(C).
    6. Dirk Kiesewetter & Tobias Steigenberger & Matthias Stier, 2018. "Can formula apportionment really prevent multinational enterprises from profit shifting? The role of asset valuation, intragroup debt, and leases," Journal of Business Economics, Springer, vol. 88(9), pages 1029-1060, December.
    7. Abdallah, Abed AL-Nasser & Abdallah, Wissam, 2019. "Does cross-listing in the US improve investment efficiency? Evidence from UK firms," The Quarterly Review of Economics and Finance, Elsevier, vol. 72(C), pages 215-231.
    8. Olawunmi Omitogun & Farouq Adekunle Akanni & Adedayo Emmanuel Longe & longeemmanuel28@gmail.com, 2019. "Disaggregated Government Expenditure and Education Enrolment in Nigeria," Business & Management Compass, University of Economics Varna, issue 4, pages 309-326.
    9. Larrye Huckins, 1989. "Capital Labor Substitution in Municipal Government," Public Finance Review, , vol. 17(4), pages 357-374, October.
    10. Edward M. Miller, 1988. "Used Capital: Implications for Isoquants, Production Functions, and Shepard's Lemma," Eastern Economic Journal, Eastern Economic Association, vol. 14(2), pages 141-152, Apr-Jun.
    11. Diao, Xinshen & McMillan, Margaret S., 2014. "Towards understanding economic growth in Africa: A reinterpretation of the Lewis Model:," IFPRI discussion papers 1380, International Food Policy Research Institute (IFPRI).
    12. Hrubovcak, James M. & Durst, Ron L., 1986. "The Impact Of Tax Reform On Implicit Rental Rates For Farm Capital," 1986 Annual Meeting, July 27-30, Reno, Nevada 278497, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Hagos, Hosaena Ghebru & Holden, Stein, 2013. "Links between tenure security and food security: Evidence from Ethiopia:," IFPRI discussion papers 1288, International Food Policy Research Institute (IFPRI).
    14. Fabio Petri, 2013. "Neglected implications of neoclassical capital-labour substitution for investment theory:another criticism of Say's Law," Department of Economics University of Siena 687, Department of Economics, University of Siena.
    15. Karl Ove Moene & Asbjorn Rodseth, 1991. "Nobel Laureate: Trygve Haavelmo," Journal of Economic Perspectives, American Economic Association, vol. 5(3), pages 175-192, Summer.
    16. Elizabeth Baldwin & Yongyang Cai & Karlygash Kuralbayeva, 2018. "To Build or Not to Build? Capital Stocks and Climate Policy," CESifo Working Paper Series 6884, CESifo.
    17. Robert J. Hill & Miriam Steurer & Sofie R. Waltl, 2019. "Owner-Occupied Housing, Inflation, and Monetary Policy," Graz Economics Papers 2019-05, University of Graz, Department of Economics.
    18. Anderson, Michael A. & Goldsmith, Arthur H., 1997. "Mr. Keynes' theory of investment: Do forward looking expectations and weight really matter?," Journal of Economic Psychology, Elsevier, vol. 18(5), pages 547-573, September.
    19. Kieran McQuinn & Teresa Monteiro & Conor O’Toole, 2021. "House Price Expectations, Labour Market Developments and the House Price to Rent Ratio: A User Cost of Capital Approach," The Journal of Real Estate Finance and Economics, Springer, vol. 62(1), pages 25-47, January.
    20. Henrekson, Magnus & Sanandaji, Tino, 2016. "Owner-Level Taxes and Business Activity," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 12(1), pages 1-94, March.

    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

    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:nea:journl:y:2018:i:38:p:164-170. 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: Alexey Tcharykov (email available below). General contact details of provider: https://edirc.repec.org/data/nearuea.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.