The Role of Structural Factors in Accelerated Economic Growth and Maintaining Financial Stability

Abstract— In the context of sluggish market dynamics, labor shortages, and declining returns on investment in fixed capital, the question of factors for achieving dynamic economic growth comes to the forefront. Structural changes are increasingly being mentioned among these. At the same time, due to the lack of an established methodology, they include a wide range of different aspects. However, analysis and forecasting require a very specific understanding of the relevant mechanisms and calculation methods. And when implementing structural policy, it is necessary to link it with other areas, including the frequently discussed one of maintaining financial stability. The article presents the author’s view on the mechanisms of participation of structural changes in economic dynamics, presents a methodology for decomposing economic growth into extensive, intensive and structural components in accordance with the use of the labor factor, provides the results of the corresponding analysis for the PRC and the Russian Federation, substantiates the strategy of economic development “in depth” as an alternative to the expansionist export policy “in breadth” to ensure accelerated economic growth in relation to the average world rate while maintaining foreign trade balance, exchange rate stability and macrofinancial stability in general.