Factors of Investment Attractiveness of Russian Regions

• Main Authors: D. V. Shcherbakova, A. A. Medved
• Format: Article
• Language: English
• Published: North-West institute of management of the Russian Presidential Academy of National Economy and Public Administration 2019-01-01
• Series: Управленческое консультирование
• Subjects: institutions; investment activity; institutional factors; regional development; regional authorities
• Online Access: https://www.acjournal.ru/jour/article/view/972

Purpose. National and international strategic capital is looking for favorable conditions for preservation and enhancement, respectively, institutional factors of investment attractiveness of Russia’s regions are crucial for ensuring sustained economic growth and prosperity. Gradually, there is a tendency to avoid formal financial assessments of investment projects in favor of a deeper institutional and economic analysis. In this regard, the role of information and analytical agencies specializing in determining the level of investment attractiveness of countries and regions is growing. The article analyzes the factors of the investment attractiveness of the regions of the Russian Federation in order to identify the reasons for the insufficiency of capital investments. The main goal, therefore, is to assess the dynamics of institutional factors of the investment attractiveness of Russian regions and develop recommendations for improving the situation.Methods. The ratings, developed by Expert RA as the most authoritative organization in this area of Russian jurisdiction, were taken as a basis for the analysis. When writing a work, we use data analysis methods, a logical method, an aggregation method.Results. As a result of the study, it was found that the problem under investigation is that in the Russian economy there is a significant gap in the regions in terms of investment activity, which contradicts the principle of the single economic space of the country. At the same time, for all components of investment risk, the ratings of the regions are fairly stable by the location of the subjects of the federation. A feature of the ratings, fixed for a long time of observations, is stability with the presence of explicit regions-leaders. This situation reflects the low dynamic mobility of the country’s investment space. Also traditional for both donor regions and recipient regions is the operation of previously created investment conditions for conducting economic activities. In this way, the efforts of the regional authorities to attract investors are often inadequate or  ineffective. Conclusions. In the paper the possible reasons for the investment regional gap are analyzed on the basis of the analysis of institutional factors are determined. Recommendations are given on the areas of work in order to improve the investment climate in the regions of the Russian Federation from the point of view of institutionalization.