+7 495 989 9610, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»






Finance and Credit

Analyzing the financial and economic development of contemporary Russia

Vol. 26, Iss. 9, SEPTEMBER 2020

Received: 18 May 2020

Received in revised form: 22 June 2020

Accepted: 6 July 2020

Available online: 29 September 2020

Subject Heading: Financial system

JEL Classification: Е44, Е60, Е69, G20, G32

Pages: 2116–2137


Smirnov V.V. I.N. Ulianov Chuvash State University (ChuvSU), Cheboksary, Chuvash Republic, Russian Federation


Subject. The article addresses the financial and economic development of Russia.
Objectives. The focus is on identifying the essence of and conditions for financial and economic development of Russia.
Methods. The study rests on the systems approach, using the method of statistical analysis.
Results. The performed analysis unveiled an increase in the growth rate of reserve assets due to the negative growth rate of net errors and omissions. This enabled to maintain the growth rate of the current account (with the exception of reserves and related items), increase the issue and coupon yield of federal loan bonds, and reduce the growth of nominal GDP and investments, and a fall in domestic demand. The study found that against a backdrop of a decrease in the specific weight of M0 in M2, there was an increase in the number of credit institutions that generate profit, as well as negative growth rates in the financial account, derivative financial instruments (except for reserves), stock options, capital flows, and credit. I revealed a negative trend in the decline of the current account indicators caused by the active use of derivative financial instruments (except for reserves) and stock options.
Conclusions. The essence of and conditions for Russia's financial and economic development are determined by the activities of the Central Bank and the Ministry of Finance, which apply an accounting approach to eliminating the manifestations of global changes in the current form of the world order.

Keywords: capital flow, activities, systems approach, growth rate, financial and economic development


  1. Kavya T.B., Shijin S. Economic development, financial development, and income inequality nexus. Borsa Istanbul Review, 2020, vol. 20, iss. 1, pp. 80–93. URL: Link
  2. Wu C.-F., Huang S.-C., Chang T. et al. The nexus of financial development and economic growth across major Asian economies: Evidence from bootstrap ARDL testing and machine learning approach. Journal of Computational and Applied Mathematics, 2020, vol. 372, article 112660. URL: Link
  3. Rongwei X., Xiaoying Z. Is financial development hampering or improving the resource curse? New evidence from China. Resources Policy, 2020, vol. 67, article 101676. URL: Link
  4. Redmond T., Nasir M.A. Role of natural resource abundance, international trade and financial development in the economic development of selected countries. Resources Policy, 2020, vol. 66, article 101591. URL: Link
  5. Yang F. The impact of financial development on economic growth in middle-income countries. Journal of International Financial Markets, Institutions and Money, 2019, vol. 59, pp. 74–89. URL: Link
  6. Botev J., Égert B., Jawadi F. The nonlinear relationship between economic growth and financial development: Evidence from developing, emerging and advanced economies. International Economics, 2019, vol. 160, pp. 3–13. URL: Link
  7. Chu L.K. Financial structure and economic growth nexus revisited. Borsa Istanbul Review, 2020, vol. 20, iss. 1, pp. 24–36. URL: Link
  8. Demir A.U., Hall S.G. Financial structure and economic development: Evidence on the view of ‘new structuralism’. International Review of Financial Analysis, 2017, vol. 52, pp. 252–259. URL: Link
  9. Allen F., Bartiloro L., Gu X., Kowalewski O. Does economic structure determine financial structure? Journal of International Economics, 2018, vol. 114, pp. 389–409. URL: Link
  10. Mollaahmetoğlu E., Akçalı B.Y. The Missing-Link between Financial Development and Economic Growth: Financial Innovation. Procedia Computer Science, 2019, vol. 158, pp. 696–704. URL: Link
  11. Bucci A., Torre D.L., Liuzzi D., Marsiglio S. Financial contagion and economic development: An epidemiological approach. Journal of Economic Behavior & Organization, 2019, vol. 162, pp. 211–228. URL: Link
  12. Phan D.H.B., Iyke B.N., Sharma S.S., Affandi Y. Economic policy uncertainty and financial stability – Is there a relation? Economic Modelling. In press, corrected proof. Available online 29 February 2020. URL: Link
  13. Huang J., Luo Y., Peng Y. Corporate financial asset holdings under economic policy uncertainty: Precautionary saving or speculating? International Review of Economics & Finance. In press, corrected proof. Available online 20 November 2019. URL: Link
  14. Song C.-Q., Chang C.-P., Gong Q. Economic growth, corruption, and financial development: Global evidence. Economic Modelling. In press, corrected proof. Available online 20 February 2020. URL: Link
  15. Ferreira de Mendonça H., Nascimento N.C. Monetary policy efficiency and macroeconomic stability: Do financial openness and economic globalization matter? The North American Journal of Economics and Finance, 2020, vol. 51, article 100870. URL: Link

View all articles of issue


ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 27, Iss. 9
September 2021