Kudryavtseva T.Yu., Skhvediani A.E. ANALYSIS OF THE PARAMETERS OF THE MODIFIED POVERTY CYCLE MODEL

DOI: https://doi.org/10.15688/jvolsu3.2018.3.11

Tatyana Yu. Kudryavtseva

Candidate of Sciences (Economics), Associate Professor, Higher School of Public Administration and Finance Management, Peter the Great St. Petersburg Polytechnic University, Politekhnicheskaya St., 29, 195251 Saint Petersburg, Russian Federation, This email address is being protected from spambots. You need JavaScript enabled to view it. .

Angi E. Skhvediani

Assistant of Higher School of Public Administration and Finance Management, Peter the Great St. Petersburg Polytechnic University, Politekhnicheskaya St., 29, 195251 Saint Petersburg, Russian Federation, This email address is being protected from spambots. You need JavaScript enabled to view it. .

Abstract. Theoretical part of the research is dedicated to the development of the poverty cycle conception. We consider the capability of the socio-economic system to develop and introduce innovations as a basis for its development and, as a consequence, for increase in labor productivity. We discuss the following factors which determine the presence of this capability: the level of the scientist’s qualification, the level of the labor force qualification, the level of the production basis development, the level of the population’s purchasing power, the volume of the high technology exports and the level of cooperation between the main participants of the market. We conduct analysis of the interactions between these factors and suggest ways of breaking out poverty cycle. The obtained model allows controlling the labor productivity of socio-economic systems as a final indicator of its economic growth. We conduct comparative analysis of Russian and developed economies by such parameters as: labor productivity, GERD, volumes of consumption, savings and high technology exports. These parameters indicate the condition of the main elements of poverty cycle. In conclusion, we note that current volumes of considered parameters would not allow Russia to increase labor productivity and achieve level of the developed countries in short- and medium-term perspectives. We believe that in order to break out of the poverty cycle the government should develop the basis for enhancing long-term economic growth. This basis should consist of high technology and export-oriented sectors of the economy, which should be supported though government investments, foreign investments, developed institutional and physical infrastructure.

Key words: poverty cycle, economic growth, labor productivity, socio-economic development, R&D.

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