IDEAS home Printed from https://ideas.repec.org/a/nos/voprec/y2020id2859.html
   My bibliography  Save this article

Public investment efficiency and monetary policy consequences: The case of investment ratio enhancing policy in Russia

Author

Listed:
  • S. A. Vlasov
  • A. A. Sinyakov

Abstract

The article analyzes the effects of measures to raise the investment rate from 21% to 25% of GDP up to 2024 on GDP growth and monetary policy. We conduct the analysis using an econometric general equilibrium model that reflects key features of the Russian economy. Achieving the target sequentially implies adding about 14 p. p. of GDP of public and/or private investment over 2019—2024 compared to the unchanged investment rate scenario. We find raising private investment to be the most efficient for stimulating GDP growth up to 2024. Among sources of public investment funding, using the sovereign wealth fund gives the highest GDP growth up to 2024. Nevertheless, given low public investment efficiency, a significant fraction of GDP growth becomes inflationary in this case. If the central bank minimizes the risk of inflation, inefficient public investment can lead the economy to equilibrium with higher private interest rates.

Suggested Citation

  • S. A. Vlasov & A. A. Sinyakov, 2020. "Public investment efficiency and monetary policy consequences: The case of investment ratio enhancing policy in Russia," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 9.
    • Handle: RePEc:nos:voprec:y:2020:id:2859
    DOI: 10.32609/0042-8736-2020-9-22-39
    as

    Download full text from publisher

    File URL: https://www.vopreco.ru/jour/article/viewFile/2859/2304
    Download Restriction: no
    File URL: https://libkey.io/10.32609/0042-8736-2020-9-22-39?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
    ---><---

    More about this item

    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:nos:voprec:y:2020:id:2859. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: NEICON (email available below). General contact details of provider: https://www.vopreco.ru .

    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.