Assessment of the influence of foreign investment on social and economic development of the country and the region based on the example of the Yaroslavl Region

Abstract

Introduction. The process of foreign investment flow occurs in an independent world market of financial resources. Its operation depends on the national investment policies of governments, the political global balance, the macroeconomic indicators of different countries, and the investment environment. Within the investment process between host countries and economic agents willing to develop joint business operations with foreign partners, foreign investments may have a controversial influence on regional economies. The recipient state should pursue a sensible policy of foreign investment control, assess the positive and negative influence of foreign investments using macroeconomic indicators and various economic and mathematical models in order to apply the positive effects of foreign investments for the balanced and sustainable development of regions. Today five economic and mathematical models are used in the Russian Federation to assess the influence of foreign investments and they only assess the influence of direct foreign investments and are used solely at the federal level (calculations are not conducted at the level of the regions of the Russian Federation, and base values are not taken into account). The subject of the study is the system of relations in the Russian Federation and in the studied region (Yaroslavl Region) concerning the attraction of foreign investment. Purpose. The purpose of this work is to evaluate the influence of foreign investments on the economy of a host country using the analysis of economic and mathematical models and on the economy of the Yaroslavl Region in 2013 and 2018 using a modified multiplier-accelerator model. Methodology. General scientific research methods were used as the methodological basis for this work, including comparative, economic-statistical, and expert evaluation methods. In this work we systematised the base values in order to use the multiplier-accelerator model at the level of the regions of the Russian Federation. Conclusions. It was concluded that using the multiplier-accelerator model and taking into account the factor of direct foreign investment, it is possible to conduct minimal calculations to get a balance between domestic and direct foreign investment in order to accelerate the economic growth of the regions of the Russian Federation.