MULTIPLIER EFFECT OF INVESTMENT IN HUMAN CAPITAL

Sustained, rapid economic growth of the intensive type is the most important task of Russia at the present stage of development. The priority direction of solving this problem is the technological modernization of production and market development of human capital, i.e. transformation of science, health, education and society. Solving this problem will improve the quality of human capital formation of the country and, consequently, its competitiveness in the global market. Supply of human capital depends on investing into it. Thus, all kinds of investments in human development, promoting growth of labour productivity and production, and determining the growth of national income and the income of each individual separately are required. The effect of investment in human capital on growth of national income can be considered on the basis of the multiplier effect resulting from the equilibrium equations of the economic system of D. Keynes. If we assume that at some point there was an increase of investments in the innovative manufacturing sector, scientific and technological sector and human capital, as a result, we obtain the effect of an increase in national income, which is associated with the growth of investment in manufacturing, science, and human capital. And with the induced effects of this growth, its impact is evident only at a certain time lag. The influence of parameters that make up the multiplier is obvious: the increase of only marginal propensity to consume gave a considerable increase in national income in case of consumption of mainly domestic production. The same equation of equilibrium was considered under the assumption that at some point in time dependence is observed for the indicator of investment in the form similar to D. Keynes' equation consumption. The analysis of the multiplier in the formula of the increment of national income shows that the inclusion of an additional component of the marginal propensity to invest has the effect of national income growth to a greater extent than the previously considered alternative. This figure can be viewed as the cumulative rate of the marginal propensity to invest production and investment in the human factor. This component of investment in the human factor is most important for economic growth: investment in education, science, health of the nation, in the development of labour, intellectual and spiritual capacities that allow the growth of national income. This production component enables to provide a mechanism to attract additional investment resources in the form of savings through the effective expansion of the securities market.

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