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National Interests: Priorities and Security
 

Analyzing the current effectiveness of the Russian economy's design

Vol. 16, Iss. 8, AUGUST 2020

Received: 13 April 2020

Received in revised form: 30 April 2020

Accepted: 16 May 2020

Available online: 14 August 2020

Subject Heading: SUSTAINABLE DEVELOPMENT OF ECONOMY

JEL Classification: C81, E20, F40, Q11

Pages: 1476–1496

https://doi.org/10.24891/ni.16.8.1476

Smirnov V.V. I.N. Ulianov Chuvash State University (ChuvSU), Cheboksary, Chuvash Republic, Russian Federation
v2v3s4@mail.ru

https://orcid.org/0000-0002-6198-3157

Subject. The article discusses Russia’s economy and analyzes its effectiveness.
Objectives. The study attempts to determine to what extent Russia’s economy is effective.
Methods. The study is based on the systems approach and the statistical analysis.
Results. I discovered significant fluctuations of the structural balance due to changing growth rates of the total gross national debt denominated in the national currency, and the stability of growth rates of governmental revenue. Changes in the RUB exchange rate and an additional growth in GDP are the main stabilizers of the structural balance, as they depend on hydrocarbon export. As a result of the analysis of cash flows, I found that the exports slowed down. Financial resources are strongly centralized, since Moscow and the Moscow Oblast are incrementing their share in the export of mineral resources, oil and refining products and import of electrical machines and equipment.
Conclusions and Relevance. The fact that the Russian economy has been effectively organized is proved with the centralization of the economic power and the limits through the cross-regional corporation, such as Moscow and the Moscow Oblast, which is resilient to any regional difficulties ensuring the economic growth and sustainable development. The findings would be valuable for the political and economic community to outline and substantiate actions to keep rates of the economic growth and sustainable development of the Russian economy.

Keywords: volatility, stabilization of economy, trans-regional corporation

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