«Investment tunnel» of the Russian economy and the need to get out of it

Abstract

Investments are naturally regarded as the engine of economic growth. However, they are far from being of such importance in all areas of economic development. The aim of the study is to identify the "investment tunnel" in Russian economy, that is, the boundaries that outline the investment dynamics, showing the limits of the investment increase, which affects economic development. The methodology consists of structural, as well as empirical and regression analysis. The application of these methods makes it possible to obtain the result: a picture of the “investment tunnel” formed in the Russian economy 2008-2020, within which there was a fluctuation in investments in fixed capital, both in industry and in the economy as a whole. The boundaries of the tunnel remained unchanged, which confirms the implementation of the economic policy that restrains the development. To expand them and form an investment model of economic growth in Russia, it is not enough to search for sources of investment, which are usually expected to come from the National wealth fund, the banking system or foreign exchange reserves, but it is necessary to distribute resources between economic sectors, with the obligatory creation of incentives and conditions for intensifying domestic investment. Institutional changes will be required, commensurate with meeting the needs of various sectors and segments of the economy in development resources, taking into account the coordination of their interaction.