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Application of Multiplicative Effects to Manage the Formation of the Region's Resource Potential

Author

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  • Eremin, Vladimir V.

    (Financial University under the Government of the Russian Federation)

  • Nikitskaya, Elena F.

    (Plekhanov Russian University of Economics)

Abstract

The article is devoted to the analysis of multiplier effects generated as part of the formation of the resource potential of the region. The relevance of the study is due to the need for the development of Russian regions in the difficult conditions of the modern economy. The new challenges for the Russian economy that have emerged in 2022 necessitate the search for new approaches to overcoming them. One of these approaches is proposed in this article the use of an investment multiplier to influence the process of forming the resource potential of the region. The research carried out in the article showed that the effect of the investment multiplier can have both a stimulating and a restraining effect on this process. Changing the volume of this influence will make it possible to manage the formation of regional resource potential. To implement this proposal in practice, it is necessary to manage the value of the regional investment multiplier. As a basis for such a management system, the article proposes a model that formalizes the multiplicative process, taking into account the stages of its distribution in the regional economy. Results: based on the proposed author's model, the values of investment multipliers for the Nizhny Novgorod and Novgorod economies were calculated. The obtained multiplier values were compared with the structure of the economies of the analyzed regions. A conclusion is made about the practical possibility of influencing the value of the regional investment multiplier through influencing the parameters of the multiplicative process and changing the structure of the regional economy.

Suggested Citation

  • Eremin, Vladimir V. & Nikitskaya, Elena F., 2024. "Application of Multiplicative Effects to Manage the Formation of the Region's Resource Potential," Journal of Modern Competition, Synergy University, vol. 18(3), pages 48-66.
  • Handle: RePEc:snr:mdrcmp:v:18:y:2024:i:3:p:48-66
    DOI: 10.37791/2687-0657-2024-18-3-48-66
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