Factors improving investment attractiveness Of Russia’s depressed regions

Abstract

Recent development of the Russian economy is largely determined by strengthening of interregional socio-economic differentiation. The uneven development of spatial socio-economic systems, in turn, makes it possible to talk about the so-called “prosperous” and “problem” regions. The problem or depressed regions are, as a rule, characterized by relatively poor adaptation to existing business conditions, lower competitiveness of industries operating in these regions, an increase in unemployment rates, negative social phenomena, and others. It should be noted that the Russian scientists studying the regional economy have already developed a list of indicators that allow one to identify the depressed regions quite accurately. These indicators include the industrial production index, unemployment rate, per capita GRP, and per capita industrial output. In accordance with the indicators and on the basis of the statistical data of recent years, ten constituent territories of the Russian Federation are classified as depressed regions: Ivanovo Region, Oryol Region, Smolensk Region, Pskov Region, Volgograd Region, Chuvash Republic, Kirov Region, Ulyanovsk Region, Kurgan Region, Altai Krai. To maintain the upward trend in the Russian economy, it is necessary to ensure an increase in investment, including investment in the economy of the depressed regions, which requires enhancing their investment attractiveness. The traditional measures of a general spectrum, which should contribute to enhancing the investment attractiveness of any territory, do not usually produce the desired result in these regions. In this respect, there is an urgent need to study the factors of investment attractiveness of the regions in order to identify the most significant ones. This will make it possible to develop and justify the proposals regarding the government investment policy, which can ensure a considerable investment in flow into the economy of the problem territories.