The Role of Infrastructure Investment in Economic Growth and Balanced Regional Development
https://doi.org/10.26794/2587-5671-2023-27-2-50-63
Abstract
The authors of the paper estimated infrastructure’ impact to economic growth, which affects the regional balanced development. The relevance of the research is substantiated by the growing dynamics of investment of public funds in infrastructure development of regions. The purpose of the research is to determine the impact of infrastructure investments on economic growth and balanced regional development. The objectives of the research are: assessment of the impact of investment in infrastructure, assessment of GRP, price index in the regions, assessment of the ratio of population by regions of Russia with average per capita incomes, wages, investment in infrastructure, renewal of fixed assets and assessment of parameters for the balanced development of regions. The authors used statistical research methods (panel data, regression analysis) to identify cause-effect relationships in the process of growth and balance of the regional economy. The scientific novelty of this paper is the identification of disproportions in development of regions in comparison with the contribution of infrastructure to the regional economy. The results suggest that the volatility of infrastructure investment across regions remains high, with the contribution of infrastructure to economic growth and balanced development (p-values from 0.6363 to 0.9552). The authors concluded that the importance of infrastructure investments is one of the most important factors in achieving socio-economic development of the region. Infrastructure investment needs to be supported to reduce regional imbalances.
Keywords
balanced development,
economic growth,
infrastructure,
infrastructure investment,
regional development
JEL: R13, C15, O40
About the Authors
N. V. Kapustina
Russian University of Transport (MIIT)
Russian Federation
Competing Interests:
Russian Federation
Nadezhda V. Kapustina - Dr. Sci. (Econ.), Prof., Department of Economic Security and Risk Management, Faculty of Economics and Business
Moscow
Competing Interests:
The authors have no confl icts of interest to declare
A. I. Sadykov
Russian University of Transport (MIIT)
Russian Federation
Competing Interests:
Russian Federation
Albert I. Sadykov - postgraduate student
Moscow
Competing Interests:
The authors have no confl icts of interest to declare
J. Podhorský
Institute of Expert Education and Research at University of Žilina
Slovakia
Competing Interests:
Slovakia
Ján Podhorský - Assoc. Prof.
Žilina
Competing Interests:
The authors have no confl icts of interest to declare
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For citations:
Kapustina N.V., Sadykov A.I., Podhorský J. The Role of Infrastructure Investment in Economic Growth and Balanced Regional Development. Finance: Theory and Practice. 2023;27(2):50-63. https://doi.org/10.26794/2587-5671-2023-27-2-50-63
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