The role of chains in the Russian retail sector

Over the recent 15 years, Russian retail sector has moved from independent stores to chain structures since such trade organization is more competitive due to a single procurement policy, economies of scale, more developed logistics, own distribution centers, greater brand recognition, etc. However, the increase in the market power of retail chains is often considered as a threat for the free market and competition. This work represents an attempt to determine the degree of concentration on the Russian food retail market within the context of economic downfall, as well as the competitiveness of such forms of business organization as retail chains. The goal of the study is to test the research hypothesis that in the context of the Russian economy’s recession some players leave the food retail market, thereby increasing the market concentration, while the market power of retail chains that are more competitive increases. To test the hypothesis of the study, relevant statistical data were analyzed for the period of 2010-2015. The estimation of the monopolization indicators made it possible to make conclusions about the concentration in the industry. The following indicators for the Russian Federation were analyzed: distribution of retail trade turnover by forms of trade; the share of retail trade networks in the formation of retail trade turnover; and the turnovers of major food retailers. The concentration indices were calculated as well. The role of mergers and acquisitions in the retail food market as a factor of increasing the concentration was highlighted herein. The players leaving the market were specified. According to the results of the study, two trends have been identified: The share of retail chains on the retail food market increased and the market concentration in the sector divided by retail chains increased.peer-reviewe

Model for integrating monetary and fiscal policies to stimulate economic growth and sustainable debt dynamics

This article examines the main integration trends of the state's monetary and fiscal policy in influencing economic growth and maintaining the sustainability of public debt. It is argued that the relationship between these trends of macroeconomic regulation is predetermined, on the one hand, by the potentially negative impact of fiscal expansion from the point of view of inflation, and by the negative impact of a likely state default in failing to refinance the debt from the Ministry of Finance, on the other hand. The paper studies the selected array of statistical data using the fiscal policy multipliers concept, the relationship between the effect of increase/decrease in budget expenditures, the slowdown in economic activity and the efforts by the Central Bank to offset fiscal measures, on the one hand, and the ratio of an increase/decrease in budget revenues and debt expenditures used to finance the budget investments, on the other hand. It is revealed that the investments are effective if implementing budget expenditures in the presence of the GDP gap and unrealized expectations of economic agents, while reducing spending in such a situation will intensify the recession. The GDP growth determined by these investments should provide the tax effect sufficient to cover the expenses. Otherwise, there can be negative effects of debt that establishes the need for measures to refinance public debt by the Central Bank. The conclusions of the paper can be used to assess the possible integration of monetary and fiscal policy based on various states.peer-reviewe

The country's economic growth models and the potential for budgetary, monetary and private financing of gross domestic product growth

This article examines the financing of GDP growth within the framework of catch-up, evolutionary and dynamic models of economic development. Methods/statistical analysis: using the principles of the Solow model and the Cobb-Douglas function, an analysis of the nature of the models has been carried out, considering the processes of capital accumulation, the rate of growth of the workforce, and various aggregate factor productivities. With the help of historical logic and statistical evaluation, examples of countries relating to each of the models examined are reviewed. Based on the analysis, the main ways of financing economic growth are noted: both the state ones, due to budgetary and monetary policy measures, and private ones. It has been proven that with the transition from catch-up to an evolutionary or dynamic model, the role of the state as a centralizing force is diminishing. At the same time, the specificity of a dynamic model is due to the country's objective ability to be among the technological leaders, which is predetermined by the high values of current GDP, per capita GDP, and population size. Countries with an evolutionary model of development are constrained in their ability to maintain a comparable pace of development only within separate "growth points". The main result of the work is the assessment of Russia's potential from the viewpoint of one of the models considered, based on a comparative analysis of several capital indicators, as well as a logical analysis of data on the level of GDP and population with other countries. This makes it possible to make recommendations for financing the country's GDP growth in the medium to long term. Scope/Improvements: The findings can be used in the development of Russia's financial and economic strategy up to 2030.peer-reviewe