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Fundamental Conditions for Innovative Development of The Economy

Fundamental Conditions for Innovative Development of The Economy

Journal of Economic Regulation, , Vol. 13 (no. 2),

Narrative-based study of the Russian innovation system makes it possible to identify the institutional and historical patterns of its development. In modern conditions, innovative development is the only acceptable option for economic orders that ensure a high level of well-being of the population. Innovative development is defined as the improvement of the economic and social living conditions of the population, which is based on the generation and use of new knowledge and new technologies in the process of value creation. The article demonstrates that the very possibility of innovative development arises and is maintained under three simultaneous fundamental conditions: 1) economic and political stability; 2) entrepreneurial initiative; 3) mechanisms of increasing returns. In addition to the mentioned fundamental conditions there are two critical prerequisites that serve as a kind of link between these conditions: market infrastructure development and science and education development. Innovative development is impossible and social order is getting stagnant in case at least one of these fundamental conditions is not fulfilled. Ensuring the three fundamental conditions depends on economic policy, which must take into account the historical, cultural and institutional features of the particular social order development.

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Factors in The Development of Construction in The Russian Federation in 1992–2019 (or a Story About Unsuitable Russian Economic Statistics)

Factors in The Development of Construction in The Russian Federation in 1992–2019 (or a Story About Unsuitable Russian Economic Statistics)

Journal of Economic Regulation, , Vol. 13 (no. 2),

The article analyzes the factors in the development of the construction industry in 1992–2019. This analysis is important not only for understanding the nature of the development of the Russian economy during this period, but also for determining the prospects for its development. The factors are difficult to analyze because the statistics of the construction industry in the post-Soviet period (as well as in the Soviet period) was the most inaccurate among the statistics of all other branches of material production. Therefore, much attention is drawn to determining the actual volume and the dynamics of all general indicators in the building statistics. In some cases, it is inevitable to use indicators of official statistics. Since the reliability of individual indicators is doubtful, where applicable, it is necessary to rely on the indicators related to macroeconomic statistics and other sectors of the economy, including foreign trade statistics. The errors are identified in the use of official statistics related to the volume and structure of capital investments in construction, price policy in construction, and to the system of national accounts. An alternative assessment is determined for the volume and dynamics of building production and labor productivity, capital-labor ratio for the whole period and for individual subperiods. Much attention is paid to determining the actual financial conditions of the construction industry. This analysis makes it possible to identify a much larger reduction in the volume of production and labor productivity in construction than according to official statistics. The author emphasizes the need for a radical improvement in the quality of official economic statistics in order to provide scientific research with reliable data and to develop a sound economic policy. The author has come to the conclusion that based on the current state of construction, the industry tends to grow in the coming years. However, it is utterly insufficient to provide multiple growth of capital investments required for the modernization of the economy.

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Poverty in The New Normal: Institutional Traps

Poverty in The New Normal: Institutional Traps

Journal of Economic Regulation, , Vol. 13 (no. 2),

In the conditions of a new normality, in which the modern economic system is forced to function, the problem of poverty is becoming increasingly relevant for research. It can be observed that the number of poor in the Russian economy is growing, the level of inequality in income distribution is also growing. All this is a consequence of market exchanges in the national economy. The institutional environment of the Russian economy, under the influence of a strong "binding effect" and dependence on the previous path of development, failed to reorganize without consequences, which led to the presence of institutional traps, which were expressed in the redistribution of income in the conditions of an increasing trend of inequality development. This article is a comprehensive study in which the search for institutional traps that develop poverty is combined with the justification of the further path of institutional evolution in terms of solving this problem. The analysis of the measures that the state is taking today to solve the problem, an assessment of their quality and effectiveness is being carried out. The study raises the question of finding fundamental universal solutions to overcome the poverty crisis in the context of combating the rut effect on the basis of a representative example of the Russian economy.

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A Comparison of Income Inequality in China and Russia and The Impact on Human Capital

A Comparison of Income Inequality in China and Russia and The Impact on Human Capital

Journal of Economic Regulation, , Vol. 13 (no. 2),

Both China and Russia in economic transition are facing the risk of widening income gap and increasing inequality. This paper analyzes the degree of income inequality between the two countries from the perspectives of Gini coefficient, income quintile and decile. The income distribution system aimed at maintaining the stability has failed to curb the expansion of income inequality. Instead, it has resulted in an unfair distribution of educational opportunities and huge differences in family education investment, which increasingly affects the quality of education, especially the acquisition of high-quality higher education resources. So income inequality has become the main obstacle to the accumulation and development of human capital. Only by controlling income inequality within a reasonable range through a more inclusive system and giving individuals fair educational opportunities can the stock and quality of human capital be improved.

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On The Mismatch Between The Form and Content of Modern Science in The Era of Digital Capitalism

On The Mismatch Between The Form and Content of Modern Science in The Era of Digital Capitalism

Journal of Economic Regulation, , Vol. 13 (no. 2),

Importance. The text is devoted to presenting the author's vision of the solution to a topical problem for modern social sciences – the representation of the dialectics of being of "transformed" forms based on the mismatch of form and content of science in the era of digital capitalism. Objectives. The research purpose is to investigate and systematize the main aspects of the theory of "transformed" forms in relation to science in the epoch of digital capitalism development which is based on the dissonance of form and content. Methods. The presented research is based on the cognitive potential of the dialectical method, the method of ascent from the abstract to the concrete, supplemented by some elements of the formational approach, which allowed to qualitatively determine and fix the systemic features and contradictions between the form and content of the modern sphere of science, as applied to the phase of being of digital capitalism.Results. The system of arguments that the contradictions between the form and content of the modern science sphere are nothing but a dialectical contradiction between the real and "transformed" form is given in the paper. In addition, the notions of "transformed" form and the "age of digital capitalism" are specified in relation to the stated subject of research. The main forms of "transformations" in the system of economic relations, as applied to the period of digital capitalism, are shown. Conclusions and Importance. The conclusion of the presented research systematizes the main results in relation to the solution of the stated goal, which in the future may become the scientific and methodological basis for subsequent research work on the evolution of complex weakly structured quasiobjects and macrosystems.

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The Role of Universities in The Development of High-Tech Industry: Conceptualization and Empirical Analysis

The Role of Universities in The Development of High-Tech Industry: Conceptualization and Empirical Analysis

Journal of Economic Regulation, , Vol. 13 (no. 2),

The article examines the relationship between the development of modern universities and high-tech industry, and try to find the role of universities in the development of high-tech industries. The author takes Zhongguancun Science Park in China as a case, to establish a correlation analysis between high-tech industries and universities. The results show that the correlation between the number of graduates and the output value of high-tech industries is not significant. The correlation between the number of universities and the output value of high-tech industries is significant at the level of 0.05, with a coefficient of 0.663. Other indicators such as R&D expenditures, R&D projects, published scientific papers, patents and so on, are highly correlated with the output value of high-tech industries, while they are all significant at the 0.01 level. It is fully demonstrated that there is a high degree of correlation between high-tech industries and universities. Universities provide high-tech industries with talent and intellectual support, financial support and continuous power, the development of high-tech industries are inseparable from universities.

Views: 126

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