Digest Finance
 

A Study into Structural Effects of Mutual Investment Induction in Sectoral Economic Systems

Vol. 22, Iss. 3, SEPTEMBER 2017

PDF  Article PDF Version

Received: 7 February 2017

Received in revised form: 1 March 2017

Accepted: 31 March 2017

Available online: 21 September 2017

Subject Heading: INNOVATION AND INVESTMENT

JEL Classification: D92, L50, L52, L90

Pages: 274-285

https://doi.org/10.24891/el.22.3.274

Myakshin V.N. Northern (Arctic) Federal University named after M.V. Lomonosov, Arkhangelsk, Russian Federation mcshin@yandex.ru

Importance As mutual relations and the effect of cross-sectoral financial flows shall be taken into account, new approaches need to be designed to study cross-sectoral investment and structural interactions through the mechanism of mutual investment induction and its structural effects. The article focuses on mutual investment induction as an economic phenomenon and respective structural effects in sectoral economic systems.
Objectives The research identifies evident patterns of investment relations in sectoral economic systems arising from the mechanism of mutual investment induction and structural effects.
Methods The methodological framework includes general scientific methods, i.e. scientific abstraction, analysis, synthesis, generalization, and systems and dialectical approaches. Data analysis is based on the methods of economic statistics (structural and dynamic analysis) and economic mathematics (methods of cross-sectoral balance) and the method of expert assessment.
Results I prove the existence of the cause-and-effect relationship and patterns seen in arising structural effects of mutual investment induction. I also elaborate theoretical principles of structural effects of mutual investment induction, proposed a set of indicators for gauging them, determine the economic substance of the indicators, devise an assessment algorithm, and technique to evaluate the entire amount of mutual investment induction in line with its structural effects.
Conclusions and Relevance The proposed set of indicators constitutes a toolkit, which would allow quantifying investment relations among adjacent industries, forecast investment processes and structural changes in sectoral economic systems and formulate investment policies subsequently.

Keywords: mutual investment induction, structural effects, marginal rate, economic system, investment substitution, investment relations

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