CONTENTS

A.E. Abramov, M.I. Chernova, A.G. Kosyrev
Private and Collective Direct Investments in Popular Shares of Russian Companies, p. 8-26
Abstract
The arrival of tens of millions of private investors to the stock exchange and their involvement in direct stock trading increases the relevance of empirical studies of the effectiveness of their strategies. The article analyzes for the first time the return and risks of the so-called people's portfolio published by the Moscow Exchange. The aim is to study the profitability and risks associated with investing in the most popular stocks on the Russian market, which are highlighted by the publication of the people's portfolio. This study confirms the phenomenon of “wisdom of the crowd” in the domestic stock market, as it shows that the yield of the people's portfolio is comparable with or even higher than that of the widely used Moscow Exchange indices. We reveal similar patterns in the investment preferences of private investors among Russian and American brokers. At the same time, the risk of herding behavior of private investors keeps increasing along with the concentration of their trades in a narrow range of high-profile stocks. In contrast to traditional mechanisms of increasing the risk of investors’ herding behavior through social networks and online brokerage applications, we show that popularization of people's portfolio by the stock exchange can have a similar effect. The returns of the people's portfolioare significantly lower than more diversified portfolios of Russian companies, which increases private investors’ risks from active trading strategies. The growing popularity of exchange-traded mutual funds does not yet allow private investors to take advantage of broader diversification, as the assets of these funds are dominated by the same stocks as in the people's portfolio. Investing in more diversified passive factor strategies could significantly improve the performance of both private investors and exchange-traded funds compared to investing in people's portfolio stocks. It would also help to improve the financing of new and growing companies on the Moscow Exchange.
Keywords: people’s portfolio, stock market, private investor, factor strategies, mutual investment funds, diversification
JEL: G10, G11, G17, G40
Funding: The article was prepared within the framework of the RANEPA state assignment research program.
For citation: Abramov A.E., Chernova M.I., Kosyrev A.G. (2025). Private and Collective Direct Investments in Popular Shares of Russian Companies. Financial Journal, 17 (1), 8–26 (in Russ.). https://doi.org/10.31107/2075-1990-2025-1-8-26.
© Abramov A.E., Chernova M.I., Kosyrev A.G., 2025

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V. I. Bartenev
Guarantee Instruments in International Development Finance: Factors, Dynamics and Prospects, p. 27-44
Abstract
This paper examines the role of guarantee instruments in the modern system of international development finance and unveils the key factors affecting the dynamics and prospects of their use. The analysis shows that these instruments have existed for decades, but have gained prominence in the XXI century. Their recognition as indispensable tools for mitigating risks to private capital, particularly political risks, has been reflected in more mentions in milestone policy documents, organizational and intellectual efforts to revise statistical reporting rules and larger volumes of private finance mobilized. However, available OECD data show insufficient use of guarantees for development purposes, extreme disproportions in mobilized finance among providers (both bilateral and multilateral), beneficiary countries and sectors and a high portfolio heterogeneity. The prospects of the distribution of guarantees will be influenced by new statistical reporting principles and a number of powerful economic and noneconomic factors, such as: 1) a lack of progress on the Sustainable Development Goals; 2) worsening budgetary constraints in developed countries, hindering the increase in official development assistance; 3) intensifying geopolitical rivalries. A possible increase in the provision of development guarantees can only be welcomed. However, if it is accompanied by a reduction in funding for traditional aid programs affecting the fundamental factors of commercial and non-commercial risks, as well as prioritization of less vulnerable but more strategically important countries, the positive effect will fall short of expectations.
Keywords: guarantees, political risk insurance, development finance, official development assistance, statistical reporting, international financial institutions, private sector
JEL: F21, F35, F52, F53
Funding: This research was financially supported by the Russian Science Foundation, project No. 23-28-01060, https://rscf.ru/en/project/23-28-01060/.
For citation: Bartenev V.I. (2025). Guarantee Instruments in International Development Finance: Factors, Dynamics, and Prospects. Financial Journal, 17 (1), 27–44 (in Russ.). https://doi.org/10.31107/2075-1990-2025-1-27-44.
© Bartenev V.I., 2025

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I.I. Yakovleva
Restrictions on Cross-border Capital Flows: Evolution of the IMF’s Position and Key Trends, p. 45-61
Abstract
The article describes the evolution of the International Monetary Fund’s position regarding restrictions on cross-border capital flows. The prerequisites of transition from one stage of evolution to another are discussed. Specific attention is paid to the adjustments of the IMF’s position after the Asian financial crisis and the global financial crisis of 2008–2009. There has been a revision of perceptions about the benefits and risks of moving towards a more open capital account. Particular attention is paid to the period after 2012, when the institutional approach to capital controls was proposed. Since then, it has defined the IMF's position with some additions and adjustments. Taking into account this institutional view, the experience of individual countries’ imposition of cross-border capital flow restrictions during the COVID-19 pandemic is examined. Moreover, using data from AREAER reports and de jure capital mobility indices, this paper attempts to identify the main trends in capital account restrictions for different groups of countries depending on their income levels and initial capital mobility. Conclusions are drawn about the possible reasons for changes in the IMF’s stance, as well as on the specifics of capital mobility faced by particular groups of countries. This is particularly relevant for Russia due to the capital controls introduced in 2022.
Keywords: capital controls, cross-border capital flows, institutional view, institutional approach, International Monetary Fund, capital inflow, capital outflow, liberalization
JEL: B27, F02, F32, F38
Funding: The article was prepared as part of the research project under the state assignment of RANEPA.
For citation: Yakovleva I.I. (2025). Restrictions on Cross-border Capital Flows: Evolution of the IMF’s Position and Key Trends. Financial Journal, 17 (1), 45–61 (in Russ.). https://doi.org/10.31107/2075-1990-2025-1-45-61.
© Yakovleva I.I., 2025

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A.I. Votinov, Ju.A. Polshchikova, K.A. Nersisyan
Macroeconomic Modeling in Post-pandemic Times, p. 62-73
Abstract
Recent trends in the global world (the financial and coronavirus crises, global geopolitical uncertainty, etc.) put macroeconomic modeling in front of the need to consider crisis phenomena in models. In this paper we try to answer the question of what has changed in macroeconomic modeling due to the coronavirus crisis and other shocks that the global economy has faced recently. Based on the literature review, the current directions in the implementation of the main classes of macroeconomic models in the pandemic and post-pandemic periods are examined. First, approaches to forecasting in crisis conditions are analyzed. Then the emphasis is shifted to nowcasting and projections for short periods of time. Mathematical chaos theory is also considered in the context of forecasting under specific and large shocks. We also discuss general equilibrium models and the relevance of incorporating heterogeneity and epidemiologic concepts into the structure of such models. Finally, we point out to a multiscenario approach to analyzing fiscal sustainability through models in the context of the unprecedented increase of government burdens faced by many countries during crisis.
Keywords: macroeconomic modeling, coronavirus crisis, COVID-19, forecasting, projections, dynamic and static general equilibrium models, public debt sustainability analysis
JEL: E10
For citation: Votinov A.I., Polshchikova Ju.A., Nersisyan K.A. (2025). Macroeconomic Modeling in Post-pandemic Times. Financial Journal, 17 (1), 62–73 (in Russ.). https://doi.org/10.31107/2075-1990-2025-1-62-73.
© Votinov A.I., Polshchikova Ju.A., Nersisyan K.A., 2025

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I.K. Klioutchnikov, T.V. Saakyan
Economic Foundations of Rationality and Efficiency of State Subsidies to Business Entities, p. 74-91
Abstract
Subject. Rationality and efficiency of budgeting state subsidies to business entities. Objectives. To develop a science-based system for assessing the rationality and effectiveness of the process of state subsidization of business entities. Results. The interrelation of rationality and efficiency of the process of budgeting subsidies to business entities is substantiated. Determination of the logic of conceptual justifications of rationality of subsidies budgeting and efficiency of their provision as a single process allowed to open a new research space for modeling and studying the effectiveness of the impact of subsidies both on business entities and on the budget. The schemes of interaction between the state and commercial organizations are analyzed. A modification of ideas about the principles of rationality and efficiency of neoclassical economic theory is proposed. Conclusions. Scientific views on the rationality and efficiency of subsidy budgeting are changing in the process of theory development, economic transformations and clarification of development goals. Model constructions of subsidies movement after their provision from the budget are developed, which will allow us to move to the assessment of the rationality and efficiency of the impact of subsidies on commercial organizations.
Keywords: subsidies, rationality, effectiveness, budgeting, financial assistance
JEL: H21, H25
For citation: Klioutchnikov I.K., Saakyan T.V. (2025). Economic Foundations of Rationality and Efficiency of State Subsidies to Business Entities. Financial Journal, 17 (1), 74–91 (in Russ.). https://doi.org/10.31107/2075-1990-2025-1-74-91.
© Klioutchnikov I.K., Saakyan T.V., 2025

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B.I. Alekhin
Ruble Debt Burden, p. 92-107
Abstract
The burden of ruble debt is measured by a ratio between the amount of rubles that Russians borrowed from their banks and their monetary income. Why ruble debt only? The share of foreign currency credit to Russian households has been declining quite steadily and remained insignificant in recent years. Even in the peak of 2010 it fluctuated around 10%. The purpose of this study is to analyze the size, dynamics and determinants of debt burden. To achieve this purpose, a panel for 81 regions of the Russian Federation for 2000–2022 was assembled on the basis of official statistics. All variables proved to be non-stationary which allowed to use panel dynamic least squares (DOLS) to estimate the parameters of the cointegrating equation. The estimates proved the existence of long-term, equilibrium relationship between debt burden and explanatory variables. To support our empirical search for drivers of debt burden we relied on the theories of life-cycle, liquidity constraints and behavioral finance. The first two proved to be useful, while the role of behavioral finance remained unclear as it was impossible to operationalize such a murky concept as financial literacy. In accordance with the life-cycle theory, the share of working-age population in the region’s entire population proved to be the main driver of debt burden growth. We also found out that debt burden is positively related to housing prices and liquidity constraints measured by the income required to get the bank loan approved. Finally, the cycle of economic activity also adds to the dynamics of debt burden with the latter increasing in bad times. All these variables are cointegrating partners of debt burden in Russia.
Keywords: mortgage and consumer loans, debt burden, cointegration, regions, Russia
JEL: G51, G21, C58
For citation: Alekhin B.I. (2025). Ruble Debt Burden. Financial Journal, 17 (1), 92–107 (in Russ.). https://doi.org/10.31107/2075-1990-2025-1-92-107.
© Alekhin B.I., 2025

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Yu.G. Lavrikova, E.O. Wegner-Kozlova, O.N. Buchinskaia
Organizational and Economic Barriers to the Development of Sustainable
Finance (on the Example of Large Industrial Businesses in the Ural Region), p. 108-125
Abstract
Despite the fact that the green finance market in Russia is actively developing, its growth rates still lag behind foreign countries. In order to create incentives to include ESG agendas in the strategic plans of the industrial sector, as well as to adapt financial market participants to new types of risks associated with sustainable development, it is necessary to identify and solve a number of organizational and economic problems. In particular, it is necessary to determine barriers to the development of sustainable investment in ESG projects from the perspective of the real economy sector, which determines the relevance of the study. The purpose of the study was to identify the reasons for the low spread of ESG projects in the activities of the large industrial sector of the Ural region in order to adapt the implementation of the ESG agenda to the needs of enterprises and the national interests of the Russian Federation. The objectives of the study included identifying the attitude of large industrial enterprises in the Ural region to the ESG agenda in terms of corporate and legal issues and operational activities and attitudes to the climate and environmental agenda, as well as determining the readiness of large businesses to use green finance and to disclose information about non-financial reporting and risks. The methodological basis of the study was the results of a questionnaire survey of management personnel responsible for consolidating ESG policy at large industrial enterprises in the Ural region. The results are as follows. All the companies surveyed expressed concerns that disclosure of information in ESG reporting could be used by unfriendly countries for political purposes or by other entities as an instrument of unfair competition. At the same time, the respondents demonstrated significant attention to the negative environmental impact of production activities. In the matters of the climate agenda, respondents are currently guided by legislative requirements. Insufficient attention is also paid to ESG training of personnel. The findings can be useful for creating incentives to include the ESG agenda in the strategic plans of the industrial sector, as well as for adapting green finance market players to new types of risks associated with sustainable development.
Keywords: ESG agenda, ESG reporting, green finance, disclosure, green transition challenges
JEL: D22, G32, L53
For citation: Lavrikova Yu.G., Wegner-Kozlova E.O., Buchinskaia O.N. (2025). Organizational and Economic Barriers to the Development of Sustainable Finance (on the Example of Large Industrial Businesses in the Ural Region). Financial Journal, 17 (1), 108–125 (in Russ.).
https://doi.org/10.31107/2075-1990-2025-1-108-125.
© Lavrikova Yu.G., Wegner-Kozlova E.O., Buchinskaia O.N., 2025

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CONTENTS

I.A. Yakovlev, A.A. Tikhonova, V.Yu. Cherkasov
Cross-border Transactions: Challenges and Possible Solutions for BRICS, p. 8-23
Abstract
The article critically examines the idea of a supranational accounting and settlement unit of BRICS. The theoretical and historical excursion brings us closer to understanding the nature of modern money and leads to the conclusion about the reasons why the national fiat unit serves as a means of international liquidity. The experience of European monetary integration is analyzed through the prism of the theory of the optimal currency area. The bottlenecks of international settlements and possible infrastructural solutions based on a central bank digital currency or multilateral clearing are considered. It is proved that multilateral clearing is an effective means of addressing the challenges in cross-border settlements, while the solutions leading to currency integration are possible only if the economic benefits exceed the damage to national monetary sovereignty.
Keywords: BRICS, money, international liquidity, supranational currency, monetary integration, clearing, CBDC
JEL: B11, B12, E40, E42, E65, F33, F34, F36, N10, O31
Acknowledgments: The authors express their gratitude to their colleague Dr. Alexey Ponomarenko for the opportunity to present in the article his idea of a parsimonious settlement scheme on a digital platform using a notional supranational asset.
Note: This article expresses the opinion of the authors and should not be considered as a source reflecting the official position of Financial Research Institute.
For citation: Yakovlev I.A., Tikhonova A.A., Cherkasov V.Yu. (2024). Cross-border Transactions: Challenges and Possible Solutions for BRICS. Financial Journal, 16 (6), 8-23 (in Russ.). https://doi.org/10.31107/2075-1990-2024-6-8-23.
© Yakovlev I.A., Tikhonova A.A., Cherkasov V.Yu., 2024

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I.V. Naumov, A.A. Bychkova, N.L. Nikulina
Theoretical and Methodological Approach to Assessing the Probability of Bankruptcy of Enterprises in Economic Sectors, p. 24-41
Abstract
In the context of the rapidly changing geopolitical situation and sanctions pressure on the Russian economy, it is critically important to assess the financial stability of enterprises, forecast the risks of decline in their financial solvency and the probability of bankruptcy in order to make effective management decisions on the development of economic sectors in the constituent entities of the Russian Federation. Currently existing methodological approaches to analyzing the probability of enterprise bankruptcy do not allow to fully assess the financial condition of economic sectors in the regions of Russia. The purpose of the work is to identify the advantages and disadvantages of the methods used in practice to analyze the financial solvency of enterprises and their adjustment to forecast the probability of bankruptcy of enterprises in the constituent entities of the Russian Federation. The novelty of the developed methodological approach is the use of multidimensional discriminant analysis of the probability of bankruptcy of enterprises in a specific sector of the economy in a constituent entity of the Russian Federation according to the modified Altman model, which eliminates the factor characterizing the ratio of the market value of shares of all enterprises in the industry to the sum of all liabilities, as well as the calculation of integral values of the probability of bankruptcy of enterprises in the industry with a breakdown into large, medium and small enterprises to study the scale of threats to financial solvency, taking into account industry specifics. In the course of the research the following results were obtained: an original methodological apparatus for assessing the probability of bankruptcy of enterprises in various sectors of the economy was developed, including the calculation of individual threshold values for each sector in the region based on the dynamics observed over a long period of time; zones of probability of bankruptcy of enterprises were determined. The resulting methodology was tested at enterprises of water supply, wastewater disposal, waste collection and utilization and pollution elimination in the Sverdlovsk region. The analysis of their financial condition revealed an increased probability of their bankruptcy. Moreover, the most vulnerable were both the largest and small enterprises which have insufficient liquidity of assets, lack of working capital and developing mainly at the expense of borrowed funds and attracted loans. As a result of the study, not only the insufficient level of financial stability and solvency of water supply, wastewater disposal, waste collection and utilization and pollution control enterprises in the Sverdlovsk region, but also a decreasing in the level of asset turnover and especially accounts receivable, as well as a high level of their debt load, were identified/designated (as the first/main signs of the threat of bankruptcy). The methodology modified by the authors allows to timely determine the probability of bankruptcy for all enterprises (large, medium, and small) taking into account the industry specifics and to initiate appropriate measures to prevent the critical financial condition of enterprises.
Keywords: bankruptcy probability, bankruptcy models, financial stability, economic sectors, multivariate discriminant analysis
JEL: G33
Funding: The research was supported by the Russian Science Foundation grant №24-28-00704 "Scenario modeling and forecasting of bankruptcy risks of industries in the Sverdlovsk region" (https:// rscf.ru/project/24-28-00704/).
For citation: Naumov I.V., Bychkova A.A., Nikulina N.L. (2024). Theoretical and Methodological Approach to Assessing the Probability of Bankruptcy of Enterprises in Economic Sectors. Financial Journal, 16 (6), 24-41 (in Russ.). https://doi.org/10.31107/2075-1990-2024-6-24-41.
© Naumov I.V., Bychkova A.A., Nikulina N.L., 2024

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A.E. Abramov, M.I. Chernova
IPO of Russian Companies: Theory, Indicators, Trends and Prospects, p. 42-60.
Abstract
Since 2022, a new wave of IPO deals in Russia has shown that the stock market continues to successfully perform capital raising functions in a challenging environment. However, when analyzing current trends, the historical data on Russian IPOs accumulated since 1996 is often not taken into account. The purpose of the article is to identify the main trends in public offerings of Russian companies’ shares from 1996 to July 2024 and the features of the new wave of IPO deals since 2022. The analysis is based on a unique database on 185 IPOs and 88 SPOs. An extensive review of studies explaining the first trading day underpricing and subsequent cumulative abnormal returns (CAR) has revealed the importance of monitoring these indicators for assessing the performance of Russian IPOs. The empirical analysis has shown that the Russian IPO-SPO stock market in 2023–2024 is significantly inferior to deals in the previous historical period in terms of volume and size. However, the size of underpricing and CAR for the first 100 and 250 trading days of the new wave of IPOs is significantly higher, which indicates the greater efficiency of current deals for investors. A positive trend of the new wave is the predominance of IPOs over SPOs and cash-in deals over resale deals. Unlike many studies of foreign markets, this analysis has shown that the size of the first trading day underpricing has a positive effect on the cumulative excess return of shares over the medium-term time horizon. The significance of this relationship has noticeably increased in the new wave of deals, which may become an important factor in the growing popularity of IPOs and the inflow of new capital into the financial markets in Russia.
Keywords: initial public offering, secondary public offering, underpricing, cumulative abnormal return, financial market
JEL: G10, G11, G14, G17, G19
Funding: The article was written on the basis of the RANEPA state assignment research program.
For citation: Abramov A.E., Chernova M.I. (2024). IPO of Russian Companies: Theory, Indicators, Trends and Prospects. Financial Journal, 16 (6), 42-60
(in Russ.). https://doi.org/10.31107/2075-1990-2024-6-42-60.
© Abramov A.E., Chernova M.I., 2024

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S.I. Rybakov, A.M. Shaikin
Mutual Insurance in Russia: Current State, Constraints and Paths of Development, p. 61-80
Abstract
The authors analyze the main factors affecting the development of mutual insurance in the Russian Federation: economic conditions, imperfect legislation, regulatory barriers and competition with alternative risk protection instruments. The article compares the competitiveness of mutual insurance against commercial insurance and highlights its advantages and disadvantages. It emphasizes the potential of mutual insurance to contribute to the economic stability and sovereignty of the Russian Federation, especially in the face of sanctions pressure on the Russian economy. The authors also emphasize the importance of implementing successful international experience and adapting Russian legislation to promote the growth of mutual insurance. The article reveals the fundamental contradiction between the interests of insurance consumers, such as households and the corporate sector (including companies with predominant state participation), and the functioning of the mutual insurance mechanism. The authors analyze quantitative indicators of mutual insurance in Russia from 2013 to 2023. The obtained data are compared with the results from the Russian insurance market and voluntary property insurance. The article proposes measures to improve the Russian mutual insurance market. These measures include state support, reduction of regulatory burden and expansion of the scope of mutual insurance in the interests of ensuring Russia’s economic sovereignty.
Keywords: insurance, mutual insurance, Russian insurance market, sanction, state policy in the insurance industry
JEL: G22, G28
Funding: The article was written on the basis of the Financial Research Institute state assignment research program.
For citation: Rybakov S.I., Shaikin A.M. (2024). Mutual Insurance in Russia: Current State, Constraints and Paths of Development. Financial Journal, 16 (6), 61-80  (in Russ.). https://doi.org/10.31107/2075-1990-2024-6-61-80.
© Rybakov S.I., Shaikin A.M., 2024

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V.V. Olkhovik, R.S. Afanasev
Improvement of the System for Implementing Budget Revenue Administration Powers in the Russian Federation, p. 81-96
Abstract
At present, in the context of the task of modernization of the budget revenue management system and transition to a unified digital register model of administration, ensuring the formation of up-to-date information on revenue sources of the budget is of particular importance. The purpose of this article is to develop proposals for improving the system of implementation of revenue administration powers, taking into account the identified problem areas during the transition to a new system of assigning powers to the chief administrators of budget revenues on a permanent basis. The authors analyze the completeness and quality of information on budget revenue sources based on the requirements of the Ministry of Finance of Russia and assess the existing system of budget revenue administration. In the course of the study the shortcomings of the current system of formation and implementation of revenue administration powers were revealed and the ways to eliminate them were proposed. The article describes the main challenges that hinder the implementation of budget revenue administration powers in the subjects of the Russian Federation. Thus, some regions face various difficulties in the interaction of participants in the process of formation and maintenance of lists through information systems. There are examples when the information necessary for the list compilation is either not provided or not provided in full. Based on the identified problems, recommendations are offered to improve the system of implementation of budget revenue administration powers, including procedures for interaction between participants of the budget process. These recommendations are aimed at enhancing the efficiency of budget revenue administration, improving forecasting and digitalization of processes to ensure greater transparency and operational management of public finances.
Keywords: budget revenue administration, budget revenue sources, digital registry model, chief administrators of budget revenues, Russian regions, modernization of revenue management system
JEL: H83
Funding: The article was written as part of scientific and methodological research under the state assignment of the Financial Research Institute.
For citation: Olkhovik V.V., Afanasev R.S. (2024). Improvement of the System for Implementing Budget Revenue Administration Powers in the Russian Federation. Financial Journal, 16 (6), 81-96 (in Russ.). https://doi.org/10.31107/2075-1990-2024-6-81-96.
© Olkhovik V.V., Afanasev R.S., 2024

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I.P. Dovbiy, Zh.A. Mingaleva, E.E. Zhulanov
Managing the Development of Regional Industrial Potential: Integrating Climate Finance into Investment Strategies, p. 97-115
Abstract
The requirements for the implementation of climate policy are becoming increasingly important in the processes of formation of global and local value chains and directly affect the development of export potential of both individual economic entities and regions. The purpose of the study is to develop recommendations for improving the tools for managing the development of industrial potential of regional systems under the current conditions of financing the climate agenda in the amount of the country’s commitments. The article analyzes the investment and financial conditions and factors determining the region’s export potential in the context of the implementation of two strategies of the climate agenda — mitigation and adaptation to climate change. A comparative analysis was carried out for the regions located along the middle and lower reaches of the Volga River. The analysis included the following meso- and micro-level areas: investment climate characteristics; conditions for financing of economic entities; investment and innovation activity of the regions and commitment to ESG principles of business entities and regional authorities; quality and elaboration of regional investment standards and climate change adaptation plans, etc. The analysis has shown the impact of the climate agenda, implemented in climate change mitigation and adaptation strategies, on the export potential of the Russian regions under study. It is concluded that the regions are not sufficiently prepared for the growing challenges of the climate agenda and the financial system is poorly developed in relation to the climate agenda. It is shown that a clear identification and understanding of the factors and conditions contributing to the inclusion of national economic entities in value chains can help government agencies and economic entities make effective decisions on the implementation of measures to ensure the formation of favorable investment and financial conditions for managing the development of the region’s industrial potential.
Keywords: climate agenda, industrial potential, investment and financial instruments, regions, development management, The CSDDD Directive
JEL: G23, G28
For citation: Dovbiy I.P., Mingaleva Zh.A., Zhulanov Е.Е. (2024). Managing the Development of Regional Industrial Potential: Integrating Climate Finance into Investment Strategies. Financial Journal, 16 (6), 97-115  (in Russ.). https://doi.org/10.31107/2075-1990-2024-6-97-115. 
© Dovbiy I.P., Mingaleva Zh.A., Zhulanov Е.Е., 2024

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E.I. Skobleva
State Development Programs as a Tool for Financing Education, p. 116-131
Abstract
The article is devoted to the issues of education financing with a focus on the application of state development programs aimed at supporting education in Russia. The author analyzes the results of the implementation of federal target programs, state programs and, as part of them, national projects and federal projects in the field of science and education. The study pays special attention to the analysis of public expenditures on higher education, which is largely financed from the federal budget. Higher education is the most important factor in the economic and social development of the country, as it largely forms the human capital, which opens up opportunities for the search for non-standard solutions, creation of new knowledge and development of technologies. One of the objectives of sustainable development in the field of education is to ensure equal access to quality vocational and higher education, including university education. The aim of the paper is to study the problems of using program instruments of education financing in Russia. The author considers federal target programs as a form of “pinpoint” financial support of the education system; shows the mechanism of transition to the program method of education financing and the transformation of program documents that determine the volume and directions of education financing; examines national projects in the context of program financing of education; analyzes the items of federal budget expenditures on higher education and draws conclusions about their content and dynamics. The article is based on official statistical data and analytical reports of the Ministry of Finance of the Russian Federation, the Federal Treasury, and the Accounts Chamber of the Russian Federation.
Keywords: education financing, higher education, sustainable development, science and universities, state program, national projects, program-target method
JEL: H52, I22, I25, O38
For citation: Skobleva E.I. (2024). State Development Programs as a Tool for Financing Education. Financial Journal, 16 (6), 116-131 (in Russ.). https://doi.org/10.31107/2075-1990-2024-6-116-131.
© Skobleva E.I., 2024

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CONTENTS

I.V. Nikonov, M.G. Arustamyan, O.R. Mukhametov, A.I. Votinov, S.A. Radionov
Transformation of Public Debt Structure by Creditors in Central Asian and South Caucasus Countries, p. 8-26
Abstract
The rapid growth of public debt in developing countries in recent years and the increasing risks associated with this process emphasize the importance of research in this area. The article examines one of the key aspects of public debt management — the structure of creditors’ debt portfolio. The object of the study is the public debt of four countries of Central Asia and three countries of the South Caucasus. The states of this region are important foreign economic partners of Russia, their contribution to mutual trade and realization of joint projects is growing. Their role in the global and regional economy is also expanding, including participation in major transport and logistics projects designed to increase the connectivity of Eurasia. The study is based on the data of international organizations on the total volume of public debt, debt to individual external creditors and the dynamics of macroeconomic indicators. The article examines changes in the structure of the main groups of creditors for each country over three long-term periods and analyzes similarities and differences in the observed structural shifts. It also decomposes the indicator of public debt dynamics and estimates the contribution of the economic growth factor and the effects of changes in countries’ debt to certain groups of creditors. The study identified the following key trends in public debt structural changes: 1) the declining role of bilateral loans from developed and developing countries since the 2000s; 2) the continued strong influence of debt raised from international financial organizations and development banks in most countries throughout the period under study; 3) in a number of countries, a gradual increase in market sources of debt financing (domestic and Eurobonds); the increasing role of loans from China — in the Kyrgyz Republic and the Republic of Tajikistan, etc. The study identifies reasons for these structural changes, and concludes with a discussion of the risks associated with the observed shifts in the structure of public debt.
Keywords: public debt, external debt, creditor structure, Central Asia, South Caucasus
JEL: F34, H63
For citation: Nikonov I.V. et al. (2024). Transformation of Public Debt Structure by Creditors in Central Asian and South Caucasus Countries. Financial Journal, 16 (5), 8–26 (in Russ.). https://doi.org/10.31107/2075-1990-2024-5-8-26.
© Nikonov I.V. et al., 2024

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V.Yu. Dodonov
Inter-budget Relations in Kazakhstan: State and Main Trends, p. 27-42
Abstract
Balance of the state budget is one of the necessary conditions for the effective functioning of the budget system of the country. This balance is largely determined by inter-governmental fiscal relations and the resulting redistribution of financial resources between the central, regional and local levels of the budget system. Inter-budget relations in Kazakhstan over the past two decades have undergonesignificant changes, which further increased the relevance of research on this topic. Such aspects of inter-budget relations as the increase in the volume and specific weight of transfers from the republican budget to the budgets of lower state bodies, the growth of the number of subsidized regions, the reduction of revenues to the republican level from the regional level, caused special attention to this problem in the budget process of Kazakhstan. The article examines the state and development of inter-budget relations in Kazakhstan in terms of these aspects in order to identify the main trends of their transformation and assess their impact on the budget process. The article analyses the main parameters of inter-budget relations in Kazakhstan, reveals trends in the role of subsidies and exemptions from local budgets, and considers the dynamicsof the number of subsidized regions and donor regions of the republican budget. It is noted that there is no noticeable improvement in the situation at the level of regional budgets, despite the increase in their revenue base due to the transfer of a number of tax revenues to the local level in 2020. Based on the analysis, the author concludes that the situation in the sphere of inter-budget relations in Kazakhstan is deteriorating, which is manifested in a constant decrease in the number of donor regions and an increase in the number of regions receiving subsidies, an increase in the share of subsidies in the revenues of local budgets, and a decrease in the share of exemptions from local budgets in the state budget revenues. It is also noted that the imbalance of inter-budget relations leads to the complication of the budget process at the republican level, which requires the adoption of measures to further increase the financial independence of the regions.
Keywords: state budget, Inter-budget relations, local budgets, subventions, exemptions
JEL: H77
Funding: the study was financially supported by grant No. IRN AR23489872 “Monitoring of interethnic relations in the southern regions of Kazakhstan” of the Committee of Science of the Ministry of Science and Higher Education of the Republic of Kazakhstan.
For citation: Dodonov V.Yu. (2024). Inter-budget Relations in Kazakhstan: State and Main Trends. Financial Journal, 16 (5), 27–42 (in Russ.).
https://doi.org/10.31107/2075-1990-2024-5-27-42.
© Dodonov V.Yu., 2024

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M.S. Makushkin
Yield Factors of Additional Tier 1 Bonds, p. 43-59
Abstract
Additional Tier 1 bonds (AT1 bonds) are hybrid financial instruments issued by banks under Basel III. In case of a threat to the financial stability of an institution, these bonds can be converted into equity or written down to help the bank meet capital requirements. AT1 bonds are designed to insure a bank against a potential capital shortfall and minimize the need for a regulatory bail-out. AT1 bonds gained new attention after the collapse of Credit Suisse (CS), when all outstanding AT1 bonds issued by the bank were written down to zero. This paper provides an overview of AT1 capital, compares the main types of AT1 bonds and describes their most common features. In addition, it quantifies the risk premium in AT1 bond yields and identifies the main factors underlying this premium. The analysis is supported by real data on AT1 issuance in Europe. It is shown that in the primary market investors demand a significant premium from banks for the additional risk embedded in AT1 bonds. The size of the premium depends mostly on issuer-specific factors such as issuer’s credit risk, capital ratio, stock volatility and asset size. On the contrary, security design turns out to be a less important pricing factor. The author compares the results before and after the CS crash and concludes that the CS AT1 write-down did not directly affect the pricing principles in the market. The results of the research may be useful both for investors looking for yield pickup in financial sector and for banks working on the optimal design for their AT1 bonds.
Keywords: AT1 bonds, contingent convertible bonds, bank capital, yield, Basel III
JEL: G12, G13, G21
For citation: Makushkin M.S. (2024). Yield Factors of Additional Tier 1 Bonds. Financial Journal, 16 (5), 43–59 (in Russ.).
https://doi.org/10.31107/2075-1990-2024-5-43-59.
© Makushkin M.S., 2024

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V.V. Gromov
Establishment of Special Economic Zones after the Moratorium: Motives, Trends, Patterns, p. 60-77
Abstract
Improvement of the investment climate is one of the main priorities of the Russian tax policy, in which special economic zones (SEZ’s) play a significant role. The pace of their creation has increased significantly in recent years. The main idea, as always, is to attract investment. However, the more such zones appear, the more obvious becomes the gap in defining the strategic role of the SEZ regime, which has already been introduced in dozens of Russian regions, but still lacks a clear conceptualization. Moreover, the revival of interest in SEZ’s contrasts sharply with the recent moratorium on their creation. Such dramatic changes have underlying motives, the understanding of which is necessary to avoid a superficial view of investment attraction policies. Since they are currently of particular importance for ensuring macroeconomic stability, the purpose of the article is to identify the problems that may hinder the effective application of the SEZ regime in Russia. On this basis, the article systematizes the prerequisites for lifting the moratorium, establishes patterns and explains trends in the creation of SEZ’s, as well as gives proposals for the development of the concept of economic zoning.
Keywords: investment, investment climate, SEZ, preferential tax treatment, special economic zone, region, tax policy, tax regime
JEL: E62, L52, R11
Funding: The article was written on the basis of the RANEPA state assignment research program.
For citation: Gromov V.V. (2024). Establishment of Special Economic Zones after the Moratorium: Motives, Trends, Patterns. Financial Journal, 16 (5), 60–77 (in Russ.). https://doi.org/10.31107/2075-1990-2024-5-60-77.
© Gromov V.V., 2024

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E.N. Timushev
Distribution of Federal Equalization Grants: Assessing the Impact of Major Changes, p. 78-96
Abstract
The purpose of the work is to establish how the main changes in the methodology of distribution of grants from the federal budget for fiscal capacity equalization affected the budget revenues of the constituent entities of the Russian Federation. The relevance of the study is due to the fact that the way of distribution of non-earmarked interbudget transfers affects the effectiveness of the model of interbudget relations. The modeling of the values of the transfers allocated annually to each constituent entity of the Russian Federation has been performed, demonstrating the adequacy of the developed methodology. The consequences of all major changes in the methodology of allocation of subsidies, such as introduction of restrictions on the reduction and increase of transfers, launching the mechanism of the model budget, reducing the equalization criterion and adding the coefficient of the level of social burden to the index of budget expenditures, have been calculated. It was found that the changes in the distribution methodology were progressive, that is, the higher was the fiscal capacity before the distribution, the smaller was the annual increase in equalization grants as a result of the changes. In other words, over time, more and more funds were allocated to the least prosperous regions. The regions of the North Caucasus Federal District benefited the most from the changes, and in general, all the innovations, except for restrictions on the reduction and increase in subsidies, had approximately the same spatial effect in terms of the composition of the “winning” regions. At the same time, it is more difficult to draw conclusions about the “losing” regions, since they have different levels of fiscal capacity.
Keywords: equalizing transfers, model budget, equalization criterion, interbudget transfers, budget expenditure index
JEL: H77
Funding: The manuscript is based on the results of research carried out within the framework of the state assignment of RANEPA.
For citation: Timushev E.N. (2024). Distribution of Federal Equalization Grants: Assessing the Impact of Major Changes. Financial Journal, 16 (5), 78–96 (in Russ.). https://doi.org/10.31107/2075-1990-2024-5-78-96.
© Timushev E.N., 2024

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A.L. Osmolovskaya-Suslina, S.R. Borisova
Simplified Taxation System: First Estimates of 2024 Changes in Tax Legislation, p. 97-108
Abstract
Changes to the simplified taxation system (STS) introduced in the course of the tax system fine-tuning will significantly alter its design: income limit requirements will be expanded and STS payers will be recognized as VAT payers. The objective of this study is to find out what percentage of STS and CIT payers will be affected by these changes. For this purpose, a distribution of STS and CIT payers by income level was plotted. Information from tax forms of the Russian Federal Tax Service, Registers of SMEs and the SPARK database for the period 2019–2022 was used as input data. It was found that there is a shift in the structure of both STS and CIT taxpayers towards lower incomes: about 70% of CIT payers and about 90% of STS payers earn less than RUB 60 million per year. The analysis revealed that for 85% of STS payers the reform will be neutral, while for 9% the situation will slightly worsen. The winners of the reform will be those companies that will switch from CIT to STS. This transition will be formally available for 87% of CIT payers, and most of them will switch due to the possibility to pay VAT. Expansion of income limits under STS may become a decisive factor for only 10% of CIT payers.
Keywords: SME, simplified tax system, CIT, tax reform, taxpayers
JEL: H2, H71, K34
For citation: Osmolovskaya-Suslina A.L., Borisova S.B. (2024). Simplified Taxation System: First Estimates of 2024 Changes in Tax Legislation. Financial Journal, 16 (5), 97–108 (in Russ.). https://doi.org/10.31107/2075-1990-2024-5-97-108.
© Osmolovskaya-Suslina A.L., Borisova S.B., 2024

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V.V. Klimanov, A.A. Mikhaylova
Improving Russia’s Tax System in 2024: Сross-country Comparisons and Regional Projection, p. 109-120
Abstract
The article discusses the additional adjustment of the tax system carried out in the Russian Federation in 2024, primarily in terms of changes in the rates of corporate income tax and personal income tax. Based on the analysis, a conclusion is made about the comparability of the levels of these taxes in Russia and in some countries of the Organization for Economic Cooperation and Development. It is shown that the centralization of additional revenues arising from the ongoing improvement of the tax system is more effective than the potential redistribution of these revenues to regional budgets due to the high concentration of corporate income tax and personal income tax in the wealthiest regions of Russia.
Keywords: tax policy, progressive taxation, personal income tax
JEL: H21, H71, H87
Funding: The manuscript is based on the results of the research carried out within the framework of the RANEPA state assignment.
For citation: Klimanov V.V., Mikhaylova A.A. (2024). Improving Russia’s Tax System in 2024: Сrosscountry Comparisons and Regional Projection. Financial Journal, 16 (5), 109–120 (in Russ.). https://doi.org/10.31107/2075-1990-2024-5-109-120.
© Klimanov V.V., Mikhaylova A.A., 2024

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D.Yu. Fedotov
Taxes and Customs Duties as Instruments of Oil Rent Withdrawal to the Russian Budget Revenue, p. 121-139
Abstract
For countries focused on the extraction and processing of natural resources, including Russia, the crucial task is to ensure the rational extraction and distribution of natural rent. The tax model applied to natural rent should facilitate its optimal allocation to the budget without undermining the motivation of resource users to invest. The purpose of this study is to gauge the extent of oil rent extraction to the Russian budget and to propose strategies to improve the efficiency of oil rent redistribution to the state budget. According to the author’s hypothesis, export customs duties, compared to the mineral extraction tax, are more effective in achieving the desired redistribution of funds from resource users to the budget. The analysis shows that from 2005 to 2022 up to 87% of the oil rent received in Russia was extracted through rent payments to the state budget. However, in recent years the degree of oil rent extraction has decreased to 56%. This decline can be attributed to the tax maneuver initiated in Russia since 2015, entailing the reduction and eventual abolition of export customs duties and an increase in the mineral extraction tax rate. The results obtained indicate a decline in effectiveness of rent-based taxation in Russia due to the decreasing fiscal significance of rent payments. Furthermore, their regulatory function, designed to stimulate taxpayers to make investments, has weakened. These findings provide valuable insights for shaping fiscal policies and lay the foundation for further research in this area.
Keywords: tax, oil rent, customs duty, mineral extraction tax, tax maneuver, investment, correlation analysis
JEL: E62, H21
Funding: The article is based on the results of research carried out at the expense of budgetary funds under the state assignment of the Financial University under the Government of the Russian Federation.
For citation: Fedotov D.Yu. (2024). Taxes and Customs Duties as Instruments of Oil Rent Withdrawal to the Russian Budget Revenue. Financial Journal, 16 (5), 121–139 (in Russ.). https://doi.org/10.31107/2075-1990-2024-5-121-139.
© Fedotov D.Yu, 2024

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CONTENTS

V.Yu. Mishina, L.I. Khomyakova
Current Trends in the Development of Financial Infrastructure and Transformation of the Foreign Exchange Market in Russia, p. 8-23
Abstract
The article analyzes the main changes in the Russian currency market in the context of modern realities — unprecedented geopolitical pressure, changes in the financial, currency and payment landscape under the influence of sanctions. The purpose of the article is to study the directions of ruble settlements, financial integration and trade in currencies of friendly countries in response to structural changes in the Russian currency market. A significant decrease in the share of the dollar in international payments, reserves and transactions in the foreign exchange market is noted. Much attention is paid to the current trends of dedollarization and diversification of financial markets, which the exchange infrastructure has developed under the influence of difficult external conditions. The authors conducted a study to answer the debatable question of whether the rise in popularity of national currencies was natural or accidental. They support their conclusions with historical statistical data on transactions in the foreign exchange market.
Keywords: foreign exchange market, currency market, conversion operations, settlements, ruble, integration, friendly countries
JEL: F02, F31, G15, G20
For citation: Mishina V.Yu., Khomyakova L.I. (2024). Current Trends in the Development of Financial Infrastructure and Transformation of the Foreign Exchange Market in Russia. Financial Journal, 16 (4), 8–23 (In Russ.). https://doi.org/10.31107/2075-1990-2024-4-8-23.
© Mishina V.Yu., Khomyakova L.I., 2024

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T.V. Saakyan
Regulatory and Methodological Support for Tracking the Results of R&D Funded with Federal Budget Subsidies, p. 24-40
Abstract
The article considers approaches to regulatory and methodological support of tracking the results of research, development and technological works for civil purposes (R&D) funded with subsidies provided to legal entities from the federal budget, including grants in the form of subsidies for R&D from the federal budget to legal entities (except for state (municipal) institutions), individual entrepreneurs, individuals — producers of goods, works and services (hereinafter — subsidies to legal entities), — at all stages of the budget process: budget planning, budget execution, reporting on budget execution. The analysis of the above issue's regulation in relation to this type of source of financial support is presented in comparison with other types of budget expenditures provided for R&D (subsidies to state institutions for the fulfillment of the state tasks perform works and procurement of works to meet state needs). The practical application of the results of the analysis makes it possible to formulate proposals for the development of unified approaches to the management of R&D expenditures by monitoring the achievement of results (and, in the long term, their application) and thereby to improve the transparency and quality of budget management in the field of scientific research at all stages of the budget process.
Keywords: budget subsidies to legal entities, results of subsidies, research, development and technological works for civil purposes, subsidies' provision monitoring, research and development works for civil purposes, experimental design works for civil purposes
JEL: G38, H20, H61, O32, O38
Funding: The article was prepared based on the results of research carried out at the expense of budgetary funds under the state assignment to the Financial Research Institute.
For citation: Saakyan T.V. (2024). Regulatory and Methodological Support for Tracking the Results of R&D Funded with Federal Budget Subsidies. Financial Journal, 16 (4), 24–40 (In Russ.). https://doi.org/10.31107/2075-1990-2024-4-24-40.
© Saakyan T.V., 2024

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A.I. Lukashov
Transformation of the Organizational and Functional Model of State and Municipal Financial Control, p. 41-60
Abstract
The article is devoted to the current organizational and functional model of state and municipal financial control. The author analyzes the powers of external and internal state and municipal financial control bodies and concludes that they are similar. He also summarizes the results of the analysis of the execution of budgetary powers by state and municipal financial control bodies, which are executive bodies of the subjects of the Russian Federation or local administrations, for the period from 2018 to 2023, conducted annually by the Federal Treasury. This allows to identify systemic problems that require improvement of the organizational and functional model of state and municipal financial control. The article contains proposals for the transformation of the existing control model.
Keywords: state and municipal financial control, Accounting Chamber of the Russian Federation, Federal Treasury, organizational and functional model
JEL: Е62, Н61, Н72, G28, P35
For citation: Lukashov A.I. (2024). Transformation of the Organizational and Functional Model of State and Municipal Financial Control. Financial Journal, 16 (4), 41–60 (In Russ.). https://doi.org/10.31107/2075-1990-2024-4-41-60.
© Lukashov A.I., 2024

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A.M. Matevosova
The Impact of the Regional Public Debt Level on Regional Economic Growth Rates in Russia, p. 61-81
Abstract
This article estimates the impact of the level of regional public debt on the rate of regional economic growth in the context of socio-economic development of Russian regions. The results obtained are important for determining the optimal level of regional public debt in order to increase the efficiency of the Russian regional budget policy. The level of regional public debt is understood in this study as the ratio of regional public debt to its GRP. Considering the heterogeneity of regions in the modeling process, the subjects were clustered by the level of socio-economic development using the k-means algorithm. Further, the results of clustering were used in econometric models to identify differences in the level of regional public debt impact on the economic growth of regions depending on the level of their socio-economic development. Using panel data models for the subjects of the Russian Federation, the negative impact of the public debt level on regional economic growth rates was revealed for regions with a low and medium levels of socio-economic development. By implementing the Hansen procedure for the subjects of these clusters, the threshold level of regional public debt was found. It is equal to 2.36% of GRP, above which the neutral impact of public debt on economic growth is replaced by a negative one. For regions with a high level of socio-economic development it was found that changes in the level of public debt are neutral in relation to regional economic growth. These results allowed us to formulate recommendations for regional budget policy.
Keywords: public debt, economic growth, clustering, panel data model, threshold regression, regional budget policy
JEL: H63, С38, С33, O47
Acknowledgments: The author is grateful for the advisory assistance to the organizers, experts and jury of the research projects competition of the Accounting Chamber of the Russian Federation and the Financial University under the Government of the Russian Federation among students, postgraduates and young researchers "Applying an evidence-based approach to the evaluation of government programs, projects, measures".
For citation: Matevosova A.M. (2024). The Impact of the Regional Public Debt Level on Regional Economic Growth Rates in Russia. Financial Journal, 16 (4), 61–81 (In Russ.). https://doi.org/10.31107/2075-1990-2024-4-61-81.
© Matevosova A.M., 2024

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K.V. Shvandar, A.A. Anisimova, N.Yu. Kamenskaia
Trends in the Architecture of the Most Sustainable Multi-tier Pension Systems, p. 82-94
Abstract
The article presents a study of the unfunded (distributive) and funded (accumulative) components in multi-level pension systems in different countries around the world. The existing foreign practices of building pension systems are reviewed. It is proved that high sustainability indicators are achieved in those countries where a combination of the unfunded and funded components is used. The relevance of the topic is conditioned by the accrued problems in the pension sector, largely associated with the aging of the population and low birth rate. To conduct the study, the authors turned to countries with multi-tier, most stable pension systems, such as Denmark, the Netherlands, Australia, Sweden, Canada, New Zealand, Finland and Latvia. As a result, a number of features of the pension systems under consideration were identified. Within the state level of pension systems, the amount of payments depends on various criteria and conditions, the use of which is aimed at making payments more targeted. In countries where occupational pension schemes are developed, participation in them is mandatory for employees and employers. At the same time, voluntary pension schemes are used much less frequently by the population of the countries under study.
Keywords: pension systems, professional pension plans, voluntary pension schemes, state pensions, funded pensions
JEL: H55, J26
For citation: Shvandar K.V., Anisimova A.A., Kamenskaya N.Yu. (2024). Trends in the Architecture of the Most Sustainable Multi-tier Pension Systems. Financial Journal, 16 (4), 82–94 (In Russ.). https://doi.org/10.31107/2075-1990-2024-4-82-94.
© Shvandar K.V., Anisimova A.A., Kamenskaya N.Yu., 2024

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M.S. Faizulin
Sentiment and Herd Behavior of Private Investors: A Cluster Analysis of the Russian Stock Market, p. 95-113
Abstract
In this paper, the sentiment of private investors and the divergence of opinions of users of online investment platforms are analyzed as factors in the emergence of herd behavior on the stock market in different clusters. This clusters are formed on the basis of stock exchange information on shares of Russian issuers. The relevance of the study lies in determining the significance of consensus periods and their impact on the behavior of different groups of investors on the Russian stock market depending on different levels of risk taking by investors. Based on the Russian stock market data for the period from 2019 to 2023, 66 discussed Russian stocks were analyzed. To conduct sentiment analysis, an algorithm was applied to collect and automatically classify textual data using machine learning methods. As proxies for private investor sentiment, metrics of logarithmic sentiment and market-wide divergence of opinions on the stocks under discussion were constructed. The testing of the research hypotheses was based on the implementation of clustering and quantile regression analysis methods. As a result, the significant role of divergence of opinions of Internet users in the formation of herd behavior of private investors on shares with lower average return and risk level was determined. It was also found that asset clustering helps to determine the opposite behavior of investors on stocks with higher volatility level. Consensus of opinions in the market is a signal to deviate from the general market trend. Finally, the test of the hypothesis about the significant influence of investor sentiment did not provide sufficient evidence that this kind of sentiment is important for determining herd behavior in the market.
Keywords: herd behavior, divergence of opinions, investor sentiment, Russian stock market
JEL: G41, G11
For citation: Faizulin M.S. (2024). Sentiment and Herd Behavior of Private Investors: A Cluster Analysis of the Russian Stock Market. Financial Journal, 16 (4), 95–113 (In Russ.). https://doi.org/10.31107/2075-1990-2024-4-95-113.
© Faizulin M.S., 2024

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A.S. Larionov
Venture Capital Investment in Israel: Impact on the Economy and Technological Development, p. 114-133
Abstract
Israel is one of the world's leading countries in attracting venture capital, which has largely determined Israel's success in building an innovative economy. This study analyzes the dynamics of venture capital investment in Israel from 1991 to 2021 and assesses the correlation between the level of such investment and the level of foreign direct investment, as well as the impact of venture capital investment on the growth of the technological sector of GDP. It is revealed that venture capital investment stimulates the growth of the high-tech sector of Israel’s GDP, and this provides a cumulative positive effect on other sectors of the economy. The stimulating effect of venture capital investment is reflected in an increase of exports of goods and services, citizens’ incomes and the growth of the country’s GDP. The relevance of the topic of the article is confirmed by the immediacy of the problem of attracting venture capital in the Russian Federation and in most developing countries of the world: for them, there is an objective need to resolve the issues related both to the state policy in the field of attracting venture capital and to the creation of infrastructure for the development of the technological innovation sector of the economy.
Keywords: venture capital investments, venture capital funds (VC funds), startups, R&D, high-tech exports, IPOs
JEL: G21, G23, G24, O30
For citation: Larionov A.S. (2024). Venture Capital Investment in Israel: Impact on the Economy and Technological Development. Financial Journal, 16 (4), 114–133 (In Russ.). https://doi.org/10.31107/2075-1990-2024-4-114-133.
© Larionov A.S., 2024

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