Economic Analysis: Theory and Practice
 

Analyzing the domestic investment demand in the Russian economy: Indicators, determinants, trends

Vol. 16, Iss. 12, DECEMBER 2017

Received: 28 September 2017

Received in revised form: 30 October 2017

Accepted: 15 November 2017

Available online: 22 December 2017

Subject Heading: INVESTMENT ANALYSIS

JEL Classification: Е21, Е22, G2

Pages: 2270–2289

https://doi.org/10.24891/ea.16.12.2270

Igonina L.L. Financial University under Government of Russian Federation, Krasnodar Branch, Krasnodar, Russian Federation
LLIgonina@fa.ru

Importance Stirring up the domestic investment demand is a key factor to implement priority goals of sustainable growth and structural balance of the Russian economy under external financial and economic constraints.
Objectives I perform a systems analysis of changes in and the current status of domestic investment demand in the Russian economy.
Methods The study applies principles of systems approach, methods of logical, comparative, structural-dynamic and economic-statistical analysis, tabular and graphical data visualization.
Results The paper investigates specific aspects of shaping the domestic investment demand in the Russian economy for 2000–2016, unveils quantitative characteristics, and justifies the choice of indicators of domestic investment demand. It includes an analysis of development trends in the investment sphere and the current status of investment demand in Russia, considering the impact of internal and external determinants, namely, economic dynamics, money income of economic agents operating in the saving sectors of the economy, and their distribution profile, expected changes in business activity, the structure of sources of investment financing, the profitability level to interest rate ratios, alternative investment opportunities, and others.
Conclusions Building and stimulating domestic investment demand to ensure sustainable economic growth requires an integrated approach. It implies setting and following the strategic priorities of financial and investment policy that ensure a growth in gross savings alongside with an increase in the efficiency of capital flow mechanisms and elimination of deformations in the saving and investment behavior of economic agents.

Keywords: domestic investment demand, indicator, determinant, economic dynamics

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