Authors

  • Farrukh Salamov
    Samarkand Institute of Economics and Service.

DOI:

https://doi.org/10.71337/inlibrary.uz.jmsi.123883

Abstract

 the article is devoted to the economic and institutional relations of economic entities that invest financial resources using digital instruments, which leads to the expansion of their investment opportunities.


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FEATURES OF INVESTMENT BEHAVIOR OF ECONOMIC ENTITIES IN THE

CONDITIONS OF DIGITALIZATION OF THE ECONOMY

Salamov Farrukh Fattoevich

Acting Professor of the Department of Economic Theory at the

Samarkand Institute of Economics and Service.

E-

mail:

farrux_sies@mail.ru

Key words:

investment, investment lending, economic growth, capital, behavior of economic

entities,

Abstract:

the article is devoted to the economic and institutional relations of economic entities

that invest financial resources using digital instruments, which leads to the expansion of their

investment opportunities.

The main premise in choosing an investment strategy for most business entities is to obtain

maximum profit with minimal risks of investing financial resources. Traditionally, the following

groups of business entities are distinguished in macroeconomic analysis, which include

households, firms (organizations), the state and the foreign sector

1

.

As participants in the investment market, households and firms are economic agents that

independently implement and conduct the entire range of investment activities, from choosing an

investment instrument and interest rate (profit rate) to monitoring and accepting risks of a market

participant who owns capital. From the point of view of modern representatives of economic

science, whose views mainly dominate the academic environment, firms and households differ

significantly. The key property of households is that all their activities are aimed at satisfying

their desires through the consumption of final goods and services. As owners of production

factors, they sell them on the market for appropriate compensation. A special feature is that

households divide the income they receive into two components, one of which they spend on

purchasing consumer goods, and the other they save by investing in various financial instruments

and real estate.

The purpose of the functioning of firms is to maximize profits or accumulate total income. Since

they do not own resources, they are forced to incur expenses for their acquisition in order to

produce goods and services. Representatives of the neoclassical synthesis

2

are sure that the same

economic entities cannot be involved in the processes of investment and savings. Savings are

made in order to meet future needs, and, therefore, households are primarily interested in them.

As for investments, the only macroeconomic entity that needs them are firms (organizations)

3

.

According to P. Samuelson , from the perspective of the average person, investments can be

called any investment of funds with the purpose of generating income. However , when it comes

1

According to the logic of the research, we are primarily interested in two macroeconomic agents – households and

firms, since they demonstrate the most significant transformation of their investment behavior in the process of

transition to a digital economic model.

2

Samuelson P. Economy. V.1 / M.: NPO " Algon " VNIISI "Mashinostroenie", 1993. P.204-205.

3

As the capitalist mode of production developed, neoclassical economists recognized that savings were not used

where they arose. It was established that the factors determining savings and the factors determining investments

were not the same. The interest rate was the countervailing force of these two quantities. This position was in turn

criticized by J. M. Keynes , who believed that the main parameter influencing the volume of savings was the income

received by households. (Sokolinsky Z. V. Theories of accumulation. – M.: “Mysl” 1973. Pp. 19-22.)


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volume 4, issue 5, 2025

940

to the macroeconomic model of circular flows of income and expenses, such an interpretation

seems incorrect. The movement of cash flows within an economic system is associated with the

transformation of savings into investments, while investments should be understood as a net

inflow of real capital goods. “The average person speaks of “investing,” as P. Samuelson writes ,

when he buys a plot of land, securities in circulation, or any other title of ownership. For

economists, these are pure transfer transactions; what one person invests, someone else

disinvests . Net investment takes place only when new real capital is created.”

4

This position

largely repeats the well-known thesis of J. M. Keynes , who also believes that in ordinary usage

investments can be purchases by one person or corporations of any property, securities on the

stock exchange, a house or a car, as well as accumulation of stocks of finished goods or

unfinished production. From Keynes's point of view , "new investments, as distinguished from

reinvestments, mean the purchase of capital assets of any kind at the expense of income. If we

consider the sale of this property as negative investments, in other words, disinvestments , then

this definition is quite consistent with ordinary usage, since transactions with objects of previous

investments (in other words, the resale of this property) are mutually "extinguished"

5

. However,

in his further reasoning about the equilibrium of the economic system, J. Keynes moves away

from such a broad interpretation of investments and says that they should be understood as "the

current increase in the value of capital assets as a result of productive activity

6

. "

Our study does not pay such close attention to the equilibrium principle, which allows us to

operate with a more extensive definition of investment

7

, which corresponds to the traditional

architecture of the macroeconomic system, the basis of which is made up of aggregated

macroeconomic entities.

The ideas of economists of the neoclassical synthesis school, developing the ideas of Keynes , in

our opinion, are excessively theorized . In addition, excessive use of mathematical tools leads to

the formalization of macroprocesses, which leads to a reduction in the motives of economic

entities. Based on their logic, the main types of economic activity of households are consumption

and savings, and only sometimes investment, but only in housing construction. Specialized

investment activity is characteristic only of firms and organizations. Such a position does not

reflect real economic practice, namely, the process of transition from an industrial mode of

production to a post-industrial one.

Conclusion:

The analysis of investment and savings categories as flow variables does not allow

a clear division of their functionality, which makes it virtually impossible to distinguish between

the investment behavior of individual economic entities, namely, households and firms.

List of references

1.

Samuelson P. Economy. V.1 / M.: NPO " Algon " VNIISI "Mashinostroenie", 1993.

P.204-205.

2.

Sokolinsky Z.V. Theories of accumulation. – M.: “Mysl” 1973. P. 19-22.

3.

Samuelson P. Economy. V.1 / M.: NPO " Algon " VNIISI "Mashinostroenie", 1993.

P.204.

4

Samuelson P. Economy. V.1 / M.: NPO " Algon " VNIISI "Mashinostroenie", 1993. P.204.

5

Keynes J. M. General Theory of Employment, Interest and Money / - M.: Helios ARV, 1999. P. 78-79.

6

Keynes J. Ukaz . works. - P. 64.

7

Investments, in this case, are understood as investments in assets whose value exceeds their market price, for which

they can be purchased at the present moment. Such an asset is capable of creating a cash flow, and this is its

fundamental difference from goods or currency, which do not create cash flows.


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volume 4, issue 5, 2025

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4.

Keynes J. M. General Theory of Employment, Interest and Money / - M.: Helios ARV,

1999. P. 78-79.

5.

Rubtsov B.B., Annenskaya N.E. The impact of information technology on the quality of

the modern financial market// Banking services. 2017. No. 12.

6.

Saxon J.D. , Larren F.B. Macroeconomics. Global approach / - M.: Delo, 1999 .

References

Samuelson P. Economy. V.1 / M.: NPO " Algon " VNIISI "Mashinostroenie", 1993. P.204-205.

Sokolinsky Z.V. Theories of accumulation. – M.: “Mysl” 1973. P. 19-22.

Samuelson P. Economy. V.1 / M.: NPO " Algon " VNIISI "Mashinostroenie", 1993. P.204.

Keynes J. M. General Theory of Employment, Interest and Money / - M.: Helios ARV, 1999. P. 78-79.

Rubtsov B.B., Annenskaya N.E. The impact of information technology on the quality of the modern financial market// Banking services. 2017. No. 12.

Saxon J.D. , Larren F.B. Macroeconomics. Global approach / - M.: Delo, 1999 .

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