Evaluation of Multiplier Effect of Housing Investments in the City Economy

摘要

The given study presents evaluation of the role and significance of housing investments providing stable social and economic development of a city. It also justifies multiplier impact of investments in housing construction on all the sectors of urban economy. Growth of housing investments generates multiplier effect triggering the development of other different interrelated sectors. The paper suggests approach developed by the authors to evaluate the level of city development. It involves defining gross city product on the basis of integral criterion of gross value added of types of economic activities in the city economy. The algorithm of gross value added generation in urban economy is presented as a result of multiplier effect of housing investments. The evaluation of the mentioned effect was shown on the case of the city of Tomsk (Russia). The study has revealed that multiplier effect allows obtaining four rubles of added value out of one ruble of housing investments in the city economy. Methods used in the present study include the ones of the System of National Accounts, as well as methods of statistical and structural analysis. It has been proved that priority investment in housing construction is considered to be the key factor for stable social and economic development of the city. Developed approach is intended for justification of priority directions in municipal and regional investment policy. City and regional governing bodies and potential investors are the ones to apply the given approach.