The Impact of the Financial Sector on Economic Growth
https://doi.org/10.26794/1999-849X-2024-17-2-6-16
Abstract
The subject of the study is the influence of the financial sector and relevant parameters characterizing the financial sector of the economy on Russia’s economic growth. The objectives of the work are to identify the main problems in assessing the impact of finance on economic growth, as well as to establish the degree of impact exerted by financial investments and wealth on the dynamics of the Russian economy at a selected time interval. The result of the study confirms the position that financial investments in Russia had a retarding effect on economic growth. The general conclusion of this study is that the basic imperative of financial markets should be the coordinated development of various economic sectors aimed at ensuring sustainable economic growth. The Russian financial sector significantly restrained economic growth at a certain stage, and a decrease in the interest rate led to a multiple increase in investments in fixed assets of the real sector. To achieve sustainable growth at a relatively high rate, it is necessary to solve the problem of purposefully providing finance for relevant types of economic activities based on plans for the structural organization of the national economy and management of changes in this structure. Budget planning is only one type of plan and cannot replace both indicative and general strategic planning and national economic plans. The modern theory of behavioral finance and financial mathematics does not take into account either the effects of panic, or the stochastics of the financial market, or the required ways of regulating it, which encourages scientists to develop new models of the financial sector and financial theory.
About the Author
O. S. Sukharev
Institute of Economics of the Russian Academy of Sciences
Russian Federation
Russian Federation
Oleg S. Sukharev — Dr. Sci. (Econ.), Prof., Chief Researcher
Moscow
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Review
For citations:
Sukharev O.S. The Impact of the Financial Sector on Economic Growth. Economics, taxes & law. 2024;17(2):6-16. (In Russ.) https://doi.org/10.26794/1999-849X-2024-17-2-6-16
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