Investments in the Transaction Sector and Financial Assets: Impact on Economic Growth

O. S. Sukharev

doi:10.26794/2587-5671-2020-24-3-60-80

Abstract

Investments are distributed unevenly in the economy. This distribution between economic sectors and activities (financial and non-financial) determines not only the dynamics of sectors, but also their contribution to economic growth. The aim of the article is to assess the impact of investments in the transaction and non-transaction sectors and the sectors themselves based on their gross value added on economic growth, as well as the impact of investments in financial assets on gross domestic product. The financial sector is an integral part of the transaction sector. Therefore, it is important to consider the impact of investments on economic growth, especially to compare it within countries. The research methodology employed the method of structural analysis, econometric modeling, and comparative analysis. The study resulted in structural models built to assess the GDP growth rate from investments in the transaction and nontransaction sectors, as well as changes in GDP from investments in financial and non-financial assets. The econometric models helped establish that the transaction sector and the investments in it make the largest contribution to the growth rate in the Russian economy, while financial investments largely weaken the economic dynamics, since the gap between financial and non-financial investments is rapidly increasing. In the other countries, the imbalance between financial and non-financial investments is less pronounced, which reduces the inhibitory effect of financial investments. The analysis of the countries provides the characteristics of their economic dynamics regarding the impact of investments in the transaction sector and financial assets. The general conclusion is that the economic growth policy in the Russian economy should consider the impact of investments in financial assets and attempt to narrow the gap with investments in non-financial assets. This will not only increase the sustainability of economic dynamics, but also the contribution of investments to economic growth.

Highlights

Investments are distributed unevenly in the economy
The aim of the article is to assess the impact of investments in the transaction and non-transaction sectors and the sectors themselves based on their gross value added on economic growth, as well as the impact of investments in financial assets on gross domestic product
The econometric models helped establish that the transaction sector and the investments in it make the largest contribution to the growth rate in the Russian economy, while financial investments largely weaken the economic dynamics, since the gap between financial and non-financial investments is rapidly increasing

Summary

ОРИГИНАЛЬНАЯ СТАТЬЯ

Применение эконометрических моделей позволило установить, что в российской экономике наибольший вклад в темп роста дает трансакционный сектор и инвестиции в него, а финансовые инвестиции во многом ослабляют экономическую динамику, так как резко растет разрыв между финансовыми и нефинансовыми инвестициями. Общий вывод сводится к тому, что в российской экономике политика экономического роста должна учитывать влияние инвестиций в финансовые активы и действовать в направлении сокращения разрыва с инвестициями в нефинансовые активы. Ключевые слова: трансакционный и нетрансакционный секторы; финансовые активы; инвестиции; экономический рост; инвестиционная функция; вклад инвестиций в темп роста; вклад секторов в темп роста; институциональное смещение финансового рынка. С. Инвестиции в трансакционный сектор и в финансовые активы: влияние на экономический рост.

Инвестиции в нефинансовые активы

Нетрансакционного Трансакционного