Impact of Economic Inertia on Economics: a Methodological Framework

• Authors: Valentinas Navickas , Vaida Bačiulienė

Abstracts

EN

The article is devoted to the phenomenon of economic inertia. The authors of the study conducted sufficiently detailed research of economic inertia, on the basis of which the damage to the economy from various economic reforms or economic shocks can be revealed in a timely manner. as Additionally, guidelines can be outlined for further economic growth and sustainable economic development. In their in-depth research on the concept of economic inertia, the authors introduced into usage and employed new concepts of certainty, uncertainty, insufficiency and the redundancy of economic inertia. The authors delineated out as many as four levels of complexity of economic inertia uncertainty. The empirical research is based on a model of the impact of subsidies on the economy. The research model demonstrates that the use of subsidies decreases the market equi-librium price. Innovative companies lose motivation to pursue sustainable economic growth and ensure competitiveness. In this case, the phenomenon of economic inertia is obvious and deprives businesses of the incentives to use innovation to ensure eco-nomic growth. Thus, subsidies as a system of stimulus and rescue in the strategic as-pect of increasing competitiveness have negative effects on the country's economy.

Keywords

EN

economic inertia; macroeconomic factors; methodology; sustainable economic growth; sustainable economic development

• Publisher: Politechnika Częstochowska
• Journal: Zeszyty Naukowe Politechniki Częstochowskiej. Zarządzanie
• Year: 2021
• Issue: 44
• Pages: 46-53

Dates

published

2021

Contributors

author

Valentinas Navickas

• Kaunas University of Technology, School of Economics and Business, Lithuania

author

Vaida Bačiulienė

• Kaunas University of Technology, School of Economics and Business, Lithuania

References

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Identifiers

DOI

10.17512/znpcz.2021.4.04

Biblioteka Nauki

2162512