DIVERGENCE AS A MEASURE OF THE FIXED CAPITAL FORMATION

The work is devoted to the issue of obtaining a comprehensive assessment of the pace of development of the capital investments in production and non-production sphere. The author gives a discrete assessment of the development rates for fixed and non-production assets of economic objects, regardless of their size. Dynamic divergence is used to model the indicator. It takes into account the impact of investments in fixed assets and human resources, as well as the volume of these factors of production. A new indicator is proposed to assess the pace of development of capital investments. Calculations carried out for a number of Federal districts of Russia and European countries confirm the credibility of the results and its capacity. Analysis of the calculations showed that as a result of lack of investment there is a steady increase in the values of divergence. This phenomenon indicates instability in the economy. Negative values appear when fixed assets decrease or unemployment increases, which indicates a recession in the economy. The values of divergence do not depend so much on the size of the economic object as on the strategy of the governing bodies. The divergence formula uses not only the productive part of the capital investment, but also the investment in improving the living conditions of workers. This makes the indicator more comprehensive. The proposed indicator can be used as another tool in assessing the effectiveness of capital investments.

modeling, divergence, capital investment, pace of development, investments, factors of production, crisis, human resources, fixed assets, indicator of the fixed capital formation.

Kuznetsov S. B. Divergence as a measure of the fixed capital formation // Business. Education. Law. 2019. No. 1 (46). Pp. 202–207. DOI: 10.25683/VOLBI.2019.46.166.