Journal section "Sectoral economic studies"

Boosting Domestic Demand as a Driving Force of Economic Growth (on the Example of Domestic Tourism Sphere)

Lukin E.V., Leonidova E.G., Sidorov M.A.

Volume 11, Issue 4, 2018

Lukin E.V., Leonidova E.G., Sidorov M.A. Boosting domestic demand as a driving force of economic growth (on the example of domestic tourism sphere). Economic and Social Changes: Facts, Trends, Forecast, 2018, vol. 11, no. 4, pp. 125–143. DOI: 10.15838/esc.2018.4.58.8

DOI: 10.15838/esc.2018.4.58.8

Abstract   |   Authors   |   References
Changing structural proportions manifested in the narrowing of domestic demand for goods and services is a trend in modern development of the Russian economy, which experiences an impact of a system-wide economic crisis and the current foreign policy and foreign economic situation. This leads to underconsumption of goods and services, and thus to a reduction of incentives for enterprises to increase production. Meanwhile, stimulation of domestic consumer demand can be considered as a factor capable of ensuring economic growth. In this regard, there is a need for scientific substantiation of measures to promote domestic demand, which in the current economic conditions can change the structural relationships and thus ensure economic growth. In our study, an attempt is made to calculate the potential economic effect of stimulating Russian citizens’ consumption of goods and services produced by domestic tourism sector. General scientific methods such as analysis, synthesis, comparison, generalization and original methodological tools based on input-output models are used as a methodological basis of the study. Novelty of the results consists in the fact that we develop a methodology and improve the tools for the use of input-output models to analyze and assess the contribution of domestic tourism to the formation of domestic demand and the impact of its stimulation on the economy; these aspects distinguish our study from similar works of other scientists. The paper presents analytical data reflecting the decomposition of gross domestic product in the context of its key components, the state of domestic consumer demand in Russia in comparison with foreign countries; we also assess the effect that the development of domestic tourism has on the economy. In conclusion we propose measures to boost this sphere and promote domestic consumer demand. In the future, we will continue working on improving structural simulation tools, which allow us to substantiate economic policy at the level of the economy as a whole, and in the framework of inter-sectoral complexes and economic activities


economic growth, domestic tourism, domestic consumer demand

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