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The article considers the influence of the complexity of the social system on the growth of financial costs for the maintenance of the central management system. The subject of the article is Professor Dmitry Sorokin’s theory that Russia cannot be a world technological leader due to objective reasons: a large territory, a severe climate, a multinational and multi-confessional composition of the population. These conditions predetermine a strong power vertical and increased financial costs, leading to the bureaucratic despotism and worse effectiveness of market innovation mechanisms. The relevance of the problem is in the need to clarify the management capabilities and limitations of regimes with strong centralized power. This issue is becoming more urgent due to the fact Wagner’s law, which requires faster growth of public expenditure compared to the economy, has ceased to operate. The article aims to theoretically illustrate and to test the theory by D. Sorokin. On this purpose, the authors built a simple theoretical model of economic growth with an institutional factor reflecting the properties of the control system. The novelty of the approach consists in building an institutional function that includes management costs for maintaining the internal integrity of the country and its external security, the management potential (“strength”) of the central government and the mechanism of market selfgovernment. The initial driving force of the model is the growing complexity of the managed system, which, by D. Zolo’s complexity theory, leads to the wide spread of authoritarian political regimes. The analysis of the model and computational experiments allowed to establish the conditions when Sorokin’s theory is valid and when not. The calculations have led to the conclusion that even a tough authoritarian rule can stimulate the country’s economic development, provided that the current system of central government is highly efficient and low in financial capacity.

This study empirically investigates the relationship between government revenue, government expenditure and the copper price in Mongolia, a resource abundant country. Using quarterly data of government revenue, expenditure and international copper price from 2000 to 2015, the results of auto regression (VAR) show that there is a strong causality from revenue to expenditure, while increase in expenditure, most likely, is not accompanied by rises in revenue. This result is consistent with the revenue-spent hypothesis. Moreover, the result also indicates that copper price shock increases revenue, but decreases expenditure. This finding supports the assumption that the Mongolian government follows its Fiscal Stability Law, a strategy that intends to maintain the stability and sustainability of the government budget.

Today, the question of introducing state-of-the-art economic management technologies in Ukraine is very urgent, especially in the area of fiscal policy. Among all instruments of such policy, it is necessary to distinguish fiscal rules, which have positively proved themselves in foreign countries in the process of managing economic fluctuations, in overcoming economic crises and achieving sustainable economic growth. So, the study of the essence of such rules as the main tool for anti-cyclical regulation of the national economy, the peculiarities of their impact on the socio-economic situation of the country and the possibility of their introduction in Ukraine are urgent questions. The purpose of the article is to study the impact of fiscal rules on the economic situation in the country, as well as the definition of place of such tools in the system of counter-cyclical regulation of the economy and the feasibility of their implementation in fiscal practice of Ukraine. It was established that the introduction of fiscal rules is associated with economic fluctuations, economic crises that shocked the economies of the world during the twentieth century – beginning of the XXI century. It was found that the introduction of fiscal rules is preceded by strategic planning and forecasting of the economic development of the country, which should be based and include a set of indicative indicators necessary to achieve future goals, and not a spontaneous solution, which can lead to further aggravation economic and social situation. The fiscal rule is a multifaceted instrument that aims to achieve overall macroeconomic stabilization and economic equilibrium. The authors believe that fiscal rules are the psychological tool for the government to enforce fiscal policy discipline. In the socio-economic conditions of Ukraine, it will be advisable to introduce fiscal restrictions that will serve to shape discipline, transparency in the budget process, debt policy, government spending policy and tax policy. Transparent, predetermined parameters will lead to the formation of a positive investment climate, increase the level of confidence in the government, reduce the shadow economy, and increase the social standards of living.

This study aims to analyze the effect of government expenditure and private investment on employment and unemployment in Indonesia, and employment opportunities on the unemployment rate in Indonesia. The path analysis is used as a method of data analysis. The results show that government expenditure and private investment have a significant and positive correlation to employment; this means that an increase in government expenditure and private investment will increase employment as well. Furthermore, private investment has a significant and negative correlation to the unemployment rate; this means that, an increase in private investment will reduce the unemployment rate. Government expenditure has no effect on unemployment rate in Indonesia because government expenditure focuses on the development of basic infrastructure and has not yet targeted the economic activities of the community.

Economic growth is still the main goal and an important indicator of the success of regional economic development. Kutai Kartanegara regency has fluctuation level of economic growth and the economic growth on average over the study period is moderately high (approaching double digits/average 9.43% over the study period) compare with 4 districts/major cities in East Kalimantan as well as national economic growth. The purpose of this study is to determine how much the influence of investment, worker and government expenditure on economic growth of Kutai Kartanegara regency. This study uses theory of regional economic growth Solow-swan basing on Cobb Douglas production function with consideration of its ability to show the relationship balance between production result and combination of factor production used. The data use is Gross Regional Domestic Product (PDRB) data according to constant prices and the amount of worker that is published by Central Bureau of Statistics (BPS) of Kutai Kartanegara regency, government expenditure data based on Regional Budget (APBD) of Kutai Kartanegara regency and private investment data from Regional Investment Agency (BPMD) of Kutai Kartanegara regency began in 2007-2011 (time series). Regression analysis used is OLS with the assistance of EVIEWS 7 software. The study results show that private investment variable has negative effect but not significant to local economic growth and level of error is α 5%, but worker variable has significant positive effect and government expenditure variable has positive effect but not significant.

Researches of influence of infrastructure on the economic growth and development of the countries gained currency. However the majority of authors drop the problem of definition of accurate concept of studied object and its criteria out. In the given article various approaches in the definition of «infrastructure» concept, criterion and the characteristics of infrastructure distinguishing it from other capital assets are presented. Such types of infrastructure, as personal, institutional, material, production, social, etc. are considered. Author’s definition of infrastructure is given.

Economic and debt crisis has increased the attention paid to the development of government expenditure in problematic regions in the European Union. The goal of the article is to provide direct empirical evidence on cyclicality and the long-term and short-term relationship between government expenditure and output in the Portugal, Ireland, Italy, Greece and Spain in a period 1995–2011. We have applied Johansen cointegration test and the error correction model on adjusted annual data of GDP and government expenditure in compliance with the COFOG international standard. Research confirms procyclical development of government expenditure functions on GDP in the selected countries; this procyclicality is in line with development typical for developing countries. Moreover, output and government expenditure are cointegrated for at least six of the expenditure categories in every country and it implies a long-term relationship between government expenditure and output consistent with Wagner’s law. The values of the coefficients for the short-run relationship between expenditure and output confirm the voracity hypothesis, as they suggest that in response to a given shock to real GDP, government expenditure rises by even more in percentage points.

The paper was set to examine the relationship between different aspects of service trade and non oil export in Nigeria as well as assess the impact of capacity development on value of service trade and the implications for improving value of non oil export in Nigeria. Secondary data 1980 to 2010 were used. Data were analysed using descriptive statistics, correlation analysis and regression analysis. Results show that total service trade value in Nigeria has increased from $1126.59 million in 1980 to $3076.19 million in 2010. Significant correlations existed between the total value of service trade and all the types of service trade except with other service trade value. Road network, government (domestic) capital expenditure on services, agricultural credit and domestic service GDP positively determine exportable services. Recommendations include improvement of service GDP and agricultural credit/loan facilities.