Abstract
Subject. This article discusses the issues related to investment as a factor in the region's economic growth. Objectives. The article aims to explore investment activities in the region, identify trends in economic growth, develop mechanisms to stimulate investment activity and modernize the regional economy. The Republic of Dagestan is considered as a case study. Methods. For the study, we used the abstract-logical, statistical, analytical methods, and a scholarly literature review. Results. The article proposes a set of reasonable measures to stimulate investment activities in the region and developed tools to involve the authorities in creating the necessary prerequisites for the inflow of private investment. Conclusions. Budget funds play a key role in the amount of investments in Dagestan's economy. Banking capital is practically not involved in the modernization of the region's economy.
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