On the theory of structural growth policy: grounds at the macro and microlevel

The purpose of this theoretical study is to develop the basic principles of the theory of structural policy which can be applicable to solving the issues of the economic growth. In many countries, structural policy has significantly become relevant, especially during the unfolding recessionary phenomena, the slowdown in growth. However, at the theoretical level of analysis, the relationship between structural policy and other policies, as well as the economic dynamics determined by the GDP growth rate, other processes in the economy - the distribution of investments, technological updates are understudied, especially in terms of the correlation between the macro and microlevels of the ongoing economic changes. The subject of the study is to obtain rigorous analytical correlations linking the economic growth and the structure of investments and technologies at the macroeconomic level, as well as identifying the modes of structural changes at the microeconomic level in “wage-profit” structure. The research methodology includes modern theories of economic growth in the neoclassical and evolutionary (Schumpeterian) areas of science, which do not account for the influence of structural elements of the economy on its dynamics, as well as the general econometric approach to economic model designs. These theoretical insights with their shortcomings were applied, which brought a new result - a structural model for evaluating the contribution of investments in new and old technologies to the rate of economic growth, the modes of technological changes in the economy with two basic sectors under their mutual influence were identified. The condition for technological updates and switching modes of “creative destruction” and “combinatorial build-up” depending on the correlation between the resource diversion rates in old industries and the creation of resources in new industries could be considered to be one more new result. In addition, a cost ratio theorem is formulated, which determines a prerequisite meaning the most suitable ratio of production and transaction costs within any economic system with the identifiable costs. The modes of changing the structure of “wages-profits” are highlighted, the modes establish the only mode of labor dominance in terms of wage dynamics, and a structural formula is obtained to highlight the contribution of price elements to its increase. The provisions developed within the study shape the general contour of the structural policy theory, are perceived to be promising for the development of the structural analysis methods and could be applied to justify the structural changes in the economy. In the future, this will manage the switching of the technological development modes at the macro and microlevel.