A Transformation of the Approach to Evaluating a Region’s Investment Attractiveness as a Consequence of the COVID-19 Pandemic

Dmitriy G. Rodionov,Evgenii A. Konnikov,Magomedgusen N. Nasrutdinov

doi:10.3390/economies9020059

Dmitriy G. Rodionov, Evgenii A. Konnikov + Show 1 more

Open Access

https://doi.org/10.3390/economies9020059

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Abstract

The global COVID-19 pandemic has caused a transformation of virtually all aspects of the world order today. Due to the introduction of the world quarantine, a considerable share of professional communications has been transformed into a format of distance interaction. As a result, the specific weight of traditional components of the investment attractiveness of a region is steadily going down, because modern business can be built without the need for territorial unity. It should be stated that now the criteria according to which investors decide if they are ready to invest in a region are dynamically transforming. The significance of the following characteristics is increasingly growing: the sustainable development of a region, qualities of the social environment, and consistency of the social infrastructure. Thus, the approaches to evaluating the region’s investment attractiveness must be transformed. Moreover, the investment process at the federal level involves the determination of target areas of regional development. Despite the universal significance of innovative development, the region can develop much more dynamically when a complex external environment is formed that complements its development model. Interregional interaction, as well as an integrated approach to innovative development, taking into account not only the momentary effect, but also the qualitative long-term transformation of the region, will significantly increase the return on investment. At the same time, the currently existing methods for assessing the investment attractiveness of the region are usually heuristic in nature and are not universal. The heuristic nature of the existing methods does not allow to completely abstract from the subjectivity of the researcher. Moreover, the existing methods do not take into account the cyclical properties of the innovative development of the region, which lead to the formation of a long-term effect from the transformation of the regional environment. This study is aimed at forming a comprehensive methodology that can be used to evaluate the investment attractiveness of a certain region and conclude about the lines of business that should be developed in it as well as to find ways to increase the region’s investment attractiveness. According to the results of the study, a comprehensive methodology was formed to evaluate the region’s investment attractiveness. It consists of three key indicators, namely, the level of the region’s investment attractiveness, the projected level of the region’s investment attractiveness, and the development vector of the region’s investment attractiveness. This methodology is based on a set of indicators that consider the status of the economic and social environment of the region, as well as the status of the innovative and ecological environment. The methodology can be used to make multi-dimensional conclusions both about the growth areas responsible for increasing the region’s innovative attractiveness and the lines of business that should be developed in the region.

Highlights

The integration of digital communications tools into the operations of enterprises is growing exponentially today
In order to make the model versatile, it is suggested that the specific weight of the indicators be distributed evenly inside the environment groups, while the specific weight among the environments should beaccording distributed according to Fishburn’swhich distribution, environments should be distributed to Fishburn’s distribution, implies which implies (Figure 4)
This study presents a comprehensive methodology for evaluating the region’s investment attractiveness that corresponds to modern digitalization trends

Summary

Introduction

The integration of digital communications tools into the operations of enterprises is growing exponentially today. The world COVID-19 pandemic has intensified these processes a lot due to the compulsory isolation of a considerable part of labor resources This involuntary integration of digital technology into virtually all business processes of enterprises can eventually end up in a complete transformation of the world economy and reduce the significance of the territorial belonging of labor force. Being able to work from virtually any point of the world, people will no longer be dependent on the regional specifics (Matteucci 2015) No doubt, this trend is not new, but it is the world COVID-19 pandemic that has provoked its active spread. Regions with the well-developed social and business infrastructure are becoming more and more attractive for investment (Vilken et al 2019)

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