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National Interests: Priorities and Security
 

Simulation scenarios of economic dynamics management in the context of growing external risks

Vol. 10, Iss. 46, DECEMBER 2014

Available online: 6 December 2014

Subject Heading: THREATS AND SECURITY

JEL Classification: 

Pages: 48-59

Gorid'ko N.P. Vyatka Social and Economic Institute, Kirov, Russian Federation
horidko@mail.ru

Nizhegorodsev R.M. Trapeznikov Institute of Control Science of RAS, Moscow, Russian Federation
bell44@rambler.ru

Importance At present, the Russian economy development dynamics, as well as the entire global economy, in general, is unstable, since it is characterized by a number of the negative trends. In addition, our country is influenced by the growing external threats, both the military and political ones, which could considerably undermine the national economy.
     Objectives The article aims to model scenarios for control of the economy depending on the growth of risks and managing impacts applied by the State.
     Methods Using the cognitive maps constructed using the language of symbol-oriented graphs, we have received a model for the country's GDP dynamics which takes into account the influence of various internal and external macroeconomic indicators. Owing to the specialized software application, developed at the Institute of Control Sciences of the RAS, we have modelled the pulses at certain graph nodes that permitted to trace the mutual influence of factors imbedded in the model. We have identified five basic scenarios: stagnation, inertial, evolutionary, insolating, and the innovative ones. We have determined that two of them, which do not envisage the managing State impacts, are absolutely unfavorable.
     Results According to other scenarios, the State regulation will permit, in some cases, to counteract the negative external influence, and carrying out a balanced investment policy will lead to a modernization breakthrough.
     Conclusions and Relevance We conclude that the tightening of sanctions against certain sectors of our economy could lead to relative isolation of its local markets and will disrupt the evolutionary development of the Russian economy. Innovation is the only scenario that would completely reach the goals facing our economy.

Keywords: external threats, economic development, dynamics, simulation, oriented graph, cognitive maps, control activation, scenario analysis

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