Economic Growth and Financial Institutions: Influence on Macro- and Micro-levels

Oleg S. Sukharev ()
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Oleg S. Sukharev: Institute of Economics, Russian Academy of Sciences, Moscow 117218, Russia

Finansovyj žhurnal — Financial Journal, 2017, issue 2, 76-90

Abstract: The problem of the influence of the resource allocation structure, in particular, financial resources, the size of the money supply on economic growth, is investigated in this article. The author obtains theoretical correlations that clarify the possible influence degree of the growth rate of individual sectors and the number of agents on the amount of money necessary for the development, which also demonstrate the importance of the “resource allocation” factor for economic development. The formation of a reasonable financial policy is the determining instrument in organization of the Russian economy growth. A strict theoretical condition on the necessary financial resources is formulated in terms of the third sector appearance in the two-sector model of the economy, and this sector can symbolize the development of innovations. Moreover, the author obtains another correlation for the development of the economic system, with a limited financial resource and makes an assessment of the financial institutions influence on the development of the economic system. Specifically, the article shows such influence at the micro-level, when solving the problem of allocating funding for basic research, where the applied criteria fulfill the role of institutions (rules for allocating financial resources).

Keywords: economic growth; economic structure; finance; money supply; fiscal policy; the model of R. Mandell (search for similar items in EconPapers)
JEL-codes: E47 E51 E61 G01 G18 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:fru:finjrn:170207:p:76-90

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