Home  Journals  Finance and Credit  6(810) - 2021 June

The Russian degree of the coherence of finance and economy

Received: 4 February 2021

Received in revised form: 18 February 2021

Accepted: 4 March 2021

Available online: 29 June 2021

Subject Heading: Financial system

JEL Classification: Е50, Е58, Е59, G21, G24

Pages: 1356–1380

https://doi.org/10.24891/fc.27.6.1356

Subject. The article discusses the extent to which finance and economy are bound in Russia.
Objectives. The study determines the cohesion of finance and economy in Russia.
Methods. The study is based on the systems approach and methods of statistical, neural network and cluster analysis.
Results. The paper determined the extent to which finance and economy are connected in Russia, considering the decay in the world economic order affecting the structural consistency of the Russian economy. The connection of finance and economy in Russia was found to tend to a lower profit margin from the difference of weighted average rates and the exchange rate, which pushes the financial sector to mortgage lending. To smooth any disparities in the lending market and eliminate causes of the housing bubble, the Russian Ministry of Finance has to increment the domestic debt ? RGBI. Analyzing the dynamics of RGBI, RTSI, USDRUB, NGG2021, BRG2021, I found out that USDRUB exceeded RGBI, RTSI and BRG2021. Natural gas (NGG2021) remains the only mechanism for sustaining the volume and return on RGBI. The U.S. sanctions against the Russian gas sector force to increase the volume of RGBI. The existing degree of the cohesion of finance and economy in Russia fuels an economic collapse than can be compared with 2008.
Conclusions and Relevance. Studying the extent to which finance and economy are bound in Russia, it is possible to guide stakeholders of financial institutions, allowing them to increase the efficiency of lending for the real economy and using the potential of the resource structure of the Russian economy. The findings contribute to the available knowledge and competence of governmental officials and employees of financial institutions for choosing growth drivers of the Russian economy and seizing opportunities for this.

Keywords: banking sector, government bonds, mortgage lending, structural functionality, financial institutions

References:

1. Aganbegyan A.G. [Crisis as a window of opportunities for socio-economic development]. Nauchnye trudy Vol'nogo ekonomicheskogo obshchestva Rossii = Scientific Works of the Free Economic Society of Russia, 2020, vol. 223, no. 3, pp. 47–69. (In Russ.) URL: Link
2. Mau V.A., Drobyshevskii S.M., Pavlov P.N. et al. Ekonomicheskaya politika Rossii. Turbulentnoe desyatiletie 2008–2018: monografiya [Economic policy of Russia. The turbulent decade of 2008–2018]. Moscow, Gaidar Institute for Economic Policy Publ., 2020, 760 p.
3. Dynkin A.A. [International turbulence and Russia]. Vestnik Rossiiskoi akademii nauk = Herald of the Russian Academy of Sciences, 2020, vol. 90, no. 3, pp. 208–219. (In Russ.)
4. Glaz'ev S.Yu., Mityaev D.A., Ageev A.I. et al. [Local currency settlement between China and Russia in the post-COVID-19 era: Current state, challenges and solutions. Part 1]. Ekonomicheskie strategii = Economic Strategies, 2020, vol. 22, no. 8, pp. 6–15. (In Russ.) URL: Link
5. Nekipelov A.D. [On the potential of macroeconomic policy in overcoming the pandemic induced crisis]. Nauchnye trudy Vol'nogo ekonomicheskogo obshchestva Rossii = Scientific Works of the Free Economic Society of Russia, 2020, vol. 223, no. 3, pp. 37–46. (In Russ.) URL: Link
6. Ivanter V.V. [Economic growth potential in Russia]. Nauchnye trudy Vol'nogo ekonomicheskogo obshchestva Rossii = Scientific Works of the Free Economic Society of Russia, 2019, vol. 218, no. 4, pp. 70–80. URL: Link (In Russ.)
7. Ishaev V.I. Rossiya i dal'nii vostok: istoriya, ekonomika, politika. Monografiya. Tom 1. Izbrannye trudy v trekh tomakh [Russia and the Far East: history, economics, politics: Monograph. Vol. 1. Selected works in 3 volumes]. Moscow, MAKS Press Publ., 2018, 136 p.
8. Hasan I., Horvath R., Mares J. Finance and Wealth Inequality. Journal of International Money and Finance, 2020, vol. 108, 102161. URL: Link
9. Dombi A., Grigoriadis T. State History and the Finance-Growth Nexus: Evidence from Transition Economies. Economic Systems, 2020, vol. 44, iss. 1, 100738. URL: Link
10. Wang C., Qiao C., Ahmed R.I., Kirikkaleli D. Institutional Quality, Bank Finance and Technological Innovation: A Way Forward for Fourth Industrial Revolution in BRICS Economies. Technological Forecasting and Social Change, 2021, vol. 163, 120427. URL: Link
11. Yuan S., Musibau H.O., Genç S.Y. et al. Digitalization of Economy is the Key Factor behind Fourth Industrial Revolution: How G7 Countries are Overcoming with the Financing Issues? Technological Forecasting and Social Change, 2021, vol. 165, 120533. URL: Link
12. Das P. Fiscal Financing Components in a Simple Model of Policy Interaction. Economic Modelling, 2021, vol. 96, pp. 257–276. URL: Link
13. Wellalage N.H., Fernandez V. Innovation and SME Finance: Evidence from Developing Countries. International Review of Financial Analysis, 2019, vol. 66, 101370. URL: Link
14. Liu Y., Sah N., Ullah B., Wei Z. Financing Patterns in Transition Economies: Privatized Former SOEs versus ab initio Private Firms. Emerging Markets Review, 2020, vol. 43, 100680. URL: Link
15. Makarov V.L., Bakhtizin A.R., Il'in N.I., Sushko E.D. [National security of Russia]. Ekonomicheskie strategii = Economic Strategies, 2020, vol. 22, no. 5, pp. 6–23. (In Russ.) URL: Link
16. Kuzyk B.N., Dobrokhleb V.G., Yakovets T.Yu. [Factors and prospects for overcoming the socio-demographic crisis in Russia]. Ekonomicheskie strategii = Economic Strategies, 2020, vol. 22, no. 5, pp. 74–81. (In Russ.) URL: Link

View all articles of issue

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

Journal current issue

Vol. 30, Iss. 3 March 2024

Archive