Abstract

The article examines the main trends in the investment development of the Republic of Dagestan. Insufficient growth rates of investments in fixed assets of the republic’s economy as a whole and per capita are noted. A comparison of investment growth with the national and NCFD averages indicates a lag and an increase in the gap in the economic development of the republic. In order to eliminate territorial imbalances in socio-economic development, the investment process in the region should proceed at a faster pace. There is also a structural imbalance of investments by types of their direction and sources of financing. The republic’s investors have not fully appreciated such industries as agriculture and tourism. High potential lies in the development of organic agriculture in the mountainous regions of the republic, providing the population with high-quality products. The main source of financing investments in fixed assets of the republic has been budgetary funds for many years, - more than seventy percent of all funds. The share of own funds in investments in the republic as a whole in 2022 accounted for only 14,6%. Investors do not use bank loans at all. The paper identifies the causes of this condition and suggests measures to improve investment activity in the region.

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