Types and models of economic growth in various types of economic systems
Abstract. The pa per shows that the main conditions for transformingthe growth of firms into the efficiency of their development are a sustainable excess of the rate of profit increase over the rate of change in the company`s revenue, rational specific transaction costs, the presence of a transparent system and organizational structure of firm management, scientifically sound investment policy and funding policy. In turn, the efficiency of firm development forms objective conditions for economic growth at a new stage of their development. The main principles of ensuring economic growth that are relevant to modern economic conditions are identified, such as objectivity, consistency, balance and synergy of managingeconomic growth processes, preventive planning, comprehensive consideration of institutional factors, systematic use of the digitalization potential in the process of ensuring intensive economic growth.
Keywords: efficiency, profit, costs, funding, transaction costs, economic growth.
Highlights:
- in the paradigm of neoclassical economic science, a number of economic and theoretical approaches to the issues of optimizing the capital structure of firms and its impact on the rate of economic growth were formed. In the 1940s and 1950s, two alternative theories of capital structure were argued to explain the impact of borrowed capital on the cost of capital used and, accordingly, on the current market valuation of assets of firms of various profiles: 1) the so-called traditional approach; 2) the Modigliani-Miller theory. Before the works by Miller and Modigliani on the theory of capital structure, there was an approach based on the analysis of financial decisions. Practice has shown that with an increase in the share of borrowed funds to a certain level, the cost of equity did not change, and then increased at an increasing rate;
- the traditional approach assumes that a company with borrowed capital (up to a certain level) is valued higher on the market than a company without long-term borrowed funds; the Modigliani-Miller theory assumes the presence of a number of assumptions;
- based on a critical analysis of specialized literature, the content of ICO as an innovative mechanism for funding the development of firms, aimed, among other things, at ensuring the intensive growth of the latter, has been clarified.
Artem A. Soloviev - Samara State University of Economics, Samara, Russia