Fixed Investment in Russia in 2017

Abstract

The macroeconomic aspect of the investment model is determined by dynamics and structure of major indexes of the real sector and by monetary and financial markets as well as by characteristics of reproduction and usage of principal factors of production economy wide by types of economic activity. This allows not only to assess the investment potential of the economy from the point of view of mobilization of internal development reserves but also to reveal constraints and possibilities for raising the investment attractiveness for the Russian and foreign capital. Institutional environment, norms and rules of regulation the investment activity, development of financial and credit system, risks of changes in social and political, economic, infrastructure and organization and managerial factors represent another feature of the investment model. The investment model being a complex system includes a third aspect – mechanism of interaction of different subjects of the investment process (state sector, corporate sector, households, foreign investors) and investment decision making by economic entities. One should also take into consideration specific features of the investment model depending on time-frame. In short-term perspective, economic growth can be determined by a system of non-capital intensive development factors, in particular, decline in inflation, reduction of costs, and shutdown of inefficient products. In medium- and long-term perspective, the role of investments notably increases due to the need to resolve deep structural issues of modernization of production and raising competitiveness of the economy.

Keywords: Russian economy, fixed investments, investment resources

JEL Classification: E20, E21, E22, E60