Rozmainsky
I.V., Skorobogatov A.S. Investor Myopia as an Institutional
Barrier to Economic
Growth in Post-Soviet Russia.
The paper
deals with analysis of special barrier to economic growth in
Post-Soviet Russia
which is Investor Myopia. This concept means that agents evaluate
consequences
of their decisions only over short-time horizon. In other words,
Investor
Myopia implies that investors think only about assets with short
pay-back
period. Typically, such assets are non-productive. Therefore Investor
Myopia
affects production, fixed capital investment and technical progress
adversely.
The paper shows that Investor Myopia becomes an organic part of human
behavior
due to adverse features of institutional environment. Such features
are, first
of all, the government failure to provide contracts enforcement and
high degree
of agents opportunism. Under Investor Myopia both monetary and fiscal
policy
fail to encourage private investment. In such case institutional
changes are
relevant.
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