Multiplier of consumer expenditures in the model of economic management of water resources of the Kyrgyz Republic

Abstract

The expenses of the population are one of the main factors determining aggregate demand, which creates the basis for the reproductive process and economic development of the state. The volume of aggregate demand in the Kyrgyz Republic is largely determined by the development of trade and economic cooperation with China. This justifies the relevance of assessing their impact on economic growth against the background of new challenges of various kinds in the conditions of unstable social and economic development of Kyrgyzstan. The relations of trade indicators with China and GDP, the value of final consumption of Kyrgyz households as part of GDP in comparison with other countries are shown. The calculated indicators of marginal propensities to consumption and saving are analyzed; the multiplier of expenditures for Kyrgyzstan. A noticeable dependence of the indicator of economic development and foreign trade activity with the use of statistical and economic-mathematical methods with an acceptable coefficient of elasticity has been revealed. Conclusions are drawn about the impact of consumer spending on aggregate demand and changes in GDP, about the correspondence of real processes to the Keynesian theory of the investment multiplier and individual deviations from it in a developing economy.