Subject The article analyzes opportunities and priorities for the Russian business environment development. Objectives The aim is to identify the impact of the main factors shaping the Russian business environment and increasing the entrepreneurial activity. Methods The study rests on the systems approach, using the elements of cluster and graphical analysis. Results We found that a significant number of the poor contributes to a decrease in the effective demand, and in combination with a flat rate of personal income tax and increased taxes on land and property of individuals – to a reduction in investment and savings. At the same time, the high value of the Gini index is not an encumbrance for the development of the business environment. We revealed the leading role of the Bank of Russia in the formation of business environment. Through changing the key interest rate, it will shift priorities from the effective demand, investments and savings to the stability of the banking system, profits of the banking sector, exporters and importers. Conclusions It is necessary to change the existing priorities for the Gini index, the personal income tax and the key interest rate. It is critical to start with the monetary policy of the Bank of Russia, the key interest rate, by raising the effective demand and stimulating investment. The next stage is to replace the flat rate of the personal income tax by a progressive scale, to reduce the tax on land and property of individuals.
Keywords: business environment, Gini index, cluster analysis, key interest rate, income tax
References:
Aganbegyan A.G. [Overcoming poverty and reducing the income and consumption inequalities in Russia]. EKO = ECO, 2017, no. 9, pp. 66–84. (In Russ.)
Aganbegyan A.G. [Social inequality is not limited to the difference in income and consumption, and includes other indicators of human wellbeing]. Finansy i biznes = Finance and Business, 2017, no. 4, pp. 3–21. URL: Link (In Russ.)
Livshits V.N., Livshits S.V. [Poverty and inequality in income of the population in Russia and abroad. Part 1]. Ekonomicheskaya nauka sovremennoi Rossii = Economics of Contemporary Russia, 2017, no. 3, pp. 70–86. (In Russ.)
Glaz'ev S.Yu. [On a new paradigm in the political economy]. Gosudarstvennoe upravlenie. Elektronnyi vestnik, 2016, no. 56, pp. 5–39. (In Russ.) URL: Link
Polterovich V.M. [Where to go: Twenty four theses]. Ekonomicheskaya nauka sovremennoi Rossii = Economics of Contemporary Russia, 2014, no. 3, pp. 7–17. URL: Link (In Russ.)
Livshits V.N., Livshits S.V. [Poverty and inequality in income of the population in Russia and abroad. Part 2]. Ekonomicheskaya nauka sovremennoi Rossii = Economics of Contemporary Russia, 2018, no. 1, pp. 49–68. (In Russ.)
Andrianov V. [Welfare is not for everyone]. Obshchestvo i ekonomika = Society and Economics, 2018, no. 1, pp. 67–95. (In Russ.)
Benson R.A. Gini Ratios: Some Considerations Affecting Their Interpretation. American Journal of Agricultural Economics, 1970, vol. 52, no. 3, pp. 444–447. URL: Link
Berrebi Z.M., Silber J. The Gini Coefficient and Negative Income: A Comment. Oxford Economic Papers, 1985, vol. 37, iss. 3, pp. 525–526. URL: Link
Fawcett R.H., Thornton P.K. Mean-Gini Dominance in Decision Analysis. IMA Journal of Management Mathematics, 1989, vol. 2, iss. 4, pp. 309–317. URL: Link
Yitzhaki Sh. Relative Deprivation and the Gini Coefficient: Reply. The Quarterly Journal of Economics, 1980, vol. 95, iss. 3, pp. 575–576. URL: Link
Hey J.D., Lambert P.J. Relative Deprivation and the Gini Coefficient: Comment. The Quarterly Journal of Economics, 1980, vol. 95, iss. 3, pp. 567–573. URL: Link
Huang J., Rios J. Optimal Tax Mix with Income Tax Non-Compliance. Journal of Public Economics, 2016, vol. 144, pp. 52–63. URL: Link
Goodall C. Minding America's Business: The Decline and Rise of the American Economy. International Affairs, 1983, vol. 59, iss. 3, pp. 551–552. URL: Link
Hanson Ph. The Russian Economic Puzzle: Going Forwards, Backwards or Sideways? International Affairs, 2007, vol. 83, iss. 5, pp. 869–889. URL: Link
Gordon R.H., Kopczuk W. The Choice of the Personal Income Tax Base. Journal of Public Economics, 2014, vol. 118, pp. 97–110. URL: Link
Dong Y., Li Ch. Economic Sanction Games among the US, the EU and Russia: Payoffs and Potential Effects. Economic Modelling, 2018, vol. 73, pp. 117–128. URL: Link
Hofer A. The “Curiouser and Curiouser” Legal Nature of Non-UN Sanctions: The Case of the US Sanctions against Russia. Journal of Conflict and Security Law, 2018, vol. 23, iss. 1, pp. 75–104. URL: Link