bgscience@idbg.ru
+7 495 648 62 41 Russia, 127015, Moscow, Novodmitrovskaya st. 5A (b. 7)
Menu
  • BIBLIO-GLOBUS
    • About
  • Journals
    • Russian Journal of Entrepreneurship
    • Creative Economy
    • Scholarly Communication Review
    • Russian Journal of Retail Management
    • Leadership and Management
    • Public-Private Partnership
    • Global Markets and Financial Engineering
    • Russian Journal of Housing Research
    • Food Policy and Security
    • Russian Journal of Labor Economics
    • Russian Journal of Innovation Economics
    • Journal of Economics, Entrepreneurship and Law
    • Russian Journal of Humanistic Psychology
  • BIBLIO-GLOBUS fiction

Switch to Russian:to Russian

Estimating the multiplier effect of housing investment on the dynamics of urban development


Ovsyannikova T.Yu., Rabtsevich O.V., Yugova I.V.
(about the authors)

Ovsyannikova Tatiana Yurevna – (Tomsk State University of Architecture and Building (TSUAB))

Rabtsevich Olga Valerevna – (Tomsk State University of Architecture and Building (TSUAB))

Yugova Irina Vladimirovna – (Tomsk State University of Architecture and Building (TSUAB))

Published in:
Russian Journal of Housing Research
– Volume 4, Number 3 (July-September 2017)

JEL classification: C67, E01, E22, L 74, O18

Keywords: gross metropolitan product, housing investments, multiplier effect, urban economics


Citation:
Ovsyannikova T.Yu., Rabtsevich O.V., Yugova I.V. (2017). Estimating the multiplier effect of housing investment on the dynamics of urban development. Russian Journal of Housing Research, 4(3), 175-192. doi: 10.18334/zhs.4.3.38584


Share:

Abstract:

The purpose of the study is to assess the role and significance of housing investments in sustainable socio-economic development of the city and to justify the multiplier effect of investments in housing on all sectors of the urban economy. The growth in housing investment boosts not only the development of the market, but also triggers a multiplicative effect in the development of other different interconnected industries. The paper suggests approach developed by the authors to the assessment of the level of urban development, which involves defining gross metropolitan product on the basis of an integrated assessment of gross value added of economic activities in the city's economy. The article presents the algorithm for the formation of gross value added in the city's economy as a result of multiplier effect of housing investments. We assess the multiplier effect of housing investments by the example of Tomsk. We reveal that multiplier effect allows obtaining four rubles of added value out of one ruble of housing investments in the city economy. The study was carried out through the methodology of the system of national accounts, statistical and structural analysis methods. We prove that the priority direction of investments in housing construction is the most important condition for sustainable social and economic development of the city. The methodology designed to justify the selection of priorities in municipal and regional investment policy. The key users of the methodology are regional and municipal administrations and potential investors.


Highlights:

Justification of significance of housing investments in the city's economy and the assessment of their role in the sustainable social and economic development of urban areas are important scientific and practical task.
The market of housing investments is a specific market; investments in the reproduction of housing stock, ie, in the production, distribution, exchange, consumption and renovation of housing, are the object of economic relations on this market.
Renovation-type housing investments that provide extended housing stock reproduction have a significant multiplier effect, providing an impetus for urban development and transforming the housing investment market into a "point of growth" in the national economy.

The authors suggest method for estimating the multiplier effect of housing investments at the level of the urban system on the basis of the production approach through the methodology of the system of National (Regional) Accounts.

The multiplier effect of housing investment is most evident in such important for the urban economy types of activities as construction, trade and provision of personal services, the production of machinery and equipment, the production of construction materials. The development and sustainable functioning of these sectors are largely determined by investment activity in housing construction.

Each ruble invested in housing construction will generate more than four rubles in the growth of gross value added in related activities. The role of housing investments in the city's economy is enormous because the effect of housing investment multiplication provides more than 36% of the gross metropolitan product.








References:
(2006). Obschie metodologicheskie printsipy postroeniya valovogo regionalnogo produkta [General methodological principles for building gross regional product] Rosstat. (in Russian).
(2011). Regionalnaya tselevaya programma razvitiya zhilischnogo stroitelstva v Tomskoy oblasti na period 2010-2015 gg [Regional target program for the development of housing construction in the Tomsk region for the period 2010-2015] Tomsk: Izdatelstvo «Kursiv». (in Russian).
(2015). Sotsialno-ekonomicheskoe polozhenie g. Tomska za yanvar-dekabr 2013 g., 2014 g [Social and economic situation in Tomsk in January-December 2013, 2014] T.: Tomskstat. (in Russian).
(2015). Statisticheskiy Ezhegodnik Tomskoy oblasti [Statistical Yearbook of the Tomsk Region] T.: Tomskstat. (in Russian).
(2015). Stroitelstvo v Tomskoy oblasti. 2015 [Construction in the Tomsk region. 2015] T.: Tomskstat. (in Russian).
(2016). Tomskaya oblast v tsifrakh [Tomsk Region in figures] T.: Tomskstat. (in Russian).
(2017). Valovoy regionalnyy produkt Tomskoy oblasti [The gross regional product of the Tomsk region] T.: Tomskstat. (in Russian).
Aganbegyan A.G. (2012). Investitsii – osnova uskorennogo sotsialno-ekonomicheskogo razvitiya Rossii [Investments are the basis for the accelerated socio-economic development of Russia]. Money and Credit. (5). 10-16. (in Russian).
Aganbegyan A.G. (2012). Stroitelstvo zhilya – lokomotiv sotsialno-ekonomicheskogo razvitiya strany [Housing construction is a driver of socio-economic development of the country]. Voprosy Ekonomiki. (5). 59-69. (in Russian).
Chekavinskiy A.N., Gutnikova E.A. (2012). Otsenka valovogo produkta goroda i napravleniya ego uvelicheniya [Estimation of the city's GDP and direction of its increase]. Problemy razvitiya territorii. (2(58)). 36-44. (in Russian).
Gross fixed capital formation by AN_F6 asset typeEurostat. Retrieved from http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=nama_10_an6&lang=en
Keyns Dzh.M. (1993). Obschaya teoriya zanyatosti, protsenta i deneg [The General Theory of Employment, Interest, and Money] M.. (in Russian).
Kosareva N.B.,Polidi T.D. (2017). Otsenka valovogo gorodskogo produkta v rossiyskikh gorodakh i ego vklada v VVP Rossii v 2000–2015 gg [Estimation of Gross metropolitan product in Russian cities and its contribution to Russia's GDP in 2000-2015]. Voprosy Ekonomiki. (7). 5-23. (in Russian).
Lopatnikov L.I. (2003). Ekonomiko-matematicheskiy slovar [Mathematical-economics dictionary] M.: Delo. (in Russian).
Ovsyannikova T.Yu. (2005). Investitsii v zhilische [Investments in housing] Tomsk: Izd-vo Tomsk. gos. arkhit.-stroit. un-ta. (in Russian).
Polyakov L.A. (2000). Teoriya multiplikatora i ekonomicheskiy mekhanizm regulirovaniya rynka zhilya [The multiplier theory and the economic regulatory mechanism of the housing market] Yaroslavl. (in Russian).
Saks Dzheffri D., Larren B. Felipe (1996). Makroekonomika. Globalnyy podkhod [Macroeconomics. Global approach] M.: Delo. (in Russian).
Samuelson P. (1994). Ekonomiks [Economics] M.: Progress. (in Russian).
Yujin Cao, Jidong Chen, Qinghua Zhang Housing Investment in Urban China: Evidence from Chinese Household SurveyJidongchen. Retrieved from http://www.jidongchen.org/uploads/4/0/1/7/40178799/housing.pdf
Инвестиции в основной капитал в Российской Федерации по видам основных фондовИнформация Федеральной службы государственной статистики. (in Russian). Retrieved from http://www.gks.ru/free_doc/new_site/business/invest/Inv-vf.xls
Укрупненные нормативы цены строительства: НЦС-03-2014; НЦС-04-2014; НЦС-16-2014; НЦС-17-2014Minstroyrf. Retrieved from http://www.minstroyrf.ru/trades/gradostroitelnaya-deyatelnost-i-arhitektura/14/

Tel : +7 495 649 6241

Fax : +7 800 3331538

E-mail : bgscience@idbg.ru

Address : RUSSIA, 101000, Moscow, Myasnitskaya st. 13-2

BIBLIO-GLOBUS Science

BIBLIO-GLOBUS Science - one of the leading science publishers in Russia.

Read More
Other sites
  • BIBLIO-GLOBUS fiction
  • BIBLIO-GLOBUS bookstore
  • National Science Publishing Association (NATSPA)
© 2016 BIBLIO-GLOBUS Science (BIBLIO-GLOBUS Publishing House). All Rights Reserved