Economic Analysis: Theory and Practice

Economic analysis of business entities' sustainable development under cyclicality

Vol. 17, Iss. 1, JANUARY 2018

Received: 11 December 2017

Received in revised form: 27 December 2017

Accepted: 10 January 2018

Available online: 29 January 2018


JEL Classification: O12, Q01

Pages: 4–17

Lyubushin N.P. Voronezh State University, Voronezh, Russian Federation

ORCID id: 0000-0002-4493-2278

Babicheva N.E. Voronezh State University, Voronezh, Russian Federation

ORCID id: 0000-0003-1933-1558

Lylov A.I. Voronezh State University, Voronezh, Russian Federation

ORCID id: not available

Importance The development of economic systems influenced by the law of cyclical development cannot be supported by permanent growth rate of target indicators thus ensuring a transition to a new level of development and business continuity. The article explores this contradiction.
Objectives The purpose is to clarify conditions, which will facilitate the modeling of processes under investigation with regard to resource conservation and the law of cyclic development. This will enable to develop models considering the impact of the law of cyclic development on going concern, resource conservation and sustainable development of economic systems.
Methods The study draws on analysis and synthesis, grouping and comparison, abstraction, generalization, analogy, and modeling.
Results The study shows that a succession of stages and phases of life cycle in the synchronized interaction of production capital, financial capital and institutional environment provides for implementation of the law of cyclic development, the concept of sustainable development and going concern. We developed models, which consider the impact of the law of cyclic development on business continuity, resource conservation and sustainable development of economic systems.
Conclusions Economic systems cannot develop under constant economic growth. According to the law of cyclic development, the sustainable development of economic systems can be achieved at each stage of life cycle only on condition of synchronization of interaction between industrial capital, financial capital and institutional environment.

Keywords: economic system, going concern, sustainable development, law of cyclic development, life cycle


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January 2018