Mechanisms of Russia’s economic growth: “simple things economy” and the resonance effect
https://doi.org/10.55959/MSU0130-0105-6-60-4-6
Abstract
The purpose of the paper is to consider some of established mechanisms of economic growth in modern Russia and possible prospects for their development. Formation of these mechanisms is linked to an important specific feature of our country, i.e. preserved market nature of the economy (especially regarding price mechanism) combined with the growing role of the state as a regulator of economic activity, which provides direct support to certain industries or enterprises. Due to this combination, the economic growth has two “engines”. The first, the market one, is switched on by the reaction of economic agents (primarily entrepreneursinvestors and banks) to the changes in demand structure, caused by societal (especially demographic) development trends. The second, the state support one, is switched on by political decision of the government, which decides to support this or that industry or region. Normally these two engines do not work in the same direction, since generally it is unreasonable for the state to spend limited budget resources on supporting those who have successfully caught the trend and is actively growing on its own. Nevertheless, based on performance analysis of some state support programs, the paper claims that sometimes — due to either political decision or incomplete foresight — the state support contributes to growth in spheres that would grow even without such support. This results in the emergence of economic resonance, i.e. the combination of state support and market forces working in the same direction. Such resonance may lead to fast economic growth, especially in case when the state support involves “simple” mass investments, occurred in the economic sector defined as the “simple things’ economy”. Drawing on the Strategy of Spatial Development of Russia and relevant demographic trends, the paper makes certain forecasts on most probable effects of the economic resonance in the forthcoming years.
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Review
For citations:
Rozinsky I.A. Mechanisms of Russia’s economic growth: “simple things economy” and the resonance effect. Moscow University Economics Bulletin. 2025;(4):108-126. (In Russ.) https://doi.org/10.55959/MSU0130-0105-6-60-4-6
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