Improving the effectiveness of Russia’s investment and industrial policy

Abstract

sanction pressure on Russian enterprises and taking into account the key role of industry in providing national economic security, the question of improving the efficiency of the country’s investment-industrial policy has become topical. The aim of the article is to elaborate an economic-mathematical model that will make it possible to make quick and effective managerial decisions in Russia’s investment-industrial sphere. The article considers a multi-model based on three methods: dynamic programming, Cobb–Douglas production function, and interindustry balance. The hypothesis made during the empirical study of the possibility of constructing one production function for several Russian industries, was confirmed. That is why, in our case, based on the general Cobb–Douglas production function, production capacity (gross production output) of several sectors of the national industrial complex are evaluated objectively. The first and second models are based on data from, respectively, seven and six industries of Russia for 2011–2016. Dynamic programming makes it possible to form an optimal plan (securing a maximum possible additional gross production output) of distributing the limited public investment resources among the sectors of the national industrial complex. The maximum possible growth of Russian industries’ gross value added is determined by means of the interindustry balance method. The study is the scientific basis for updating the provisions of the Russian investment and industrial policy.