Investment Attractiveness Of Region Research Articles

ИНВЕСТИЦИОННАЯ ПРИВЛЕКАТЕЛЬНОСТЬ КАЛУЖСКОЙ ОБЛАСТИ: ФАКТОРЫ И МЕТОДИКИ ОЦЕНКИ

Active development of the region's economy is impossible without attracting investment. Investment activity is the most important determinant of effective social and economic development of the regional economy. It is important for potential investors to correctly assess the investment attractiveness of the region and determine the level of investment risk. The article examines the main factors of investment attractiveness of the regions of the Russian Federation. The analysis of the main methods of assessing the investment attractiveness of regions used in Russian practice is carried out. The article draws attention to the tendency of refusal from simple calculation of financial indicators towards in-depth economic analysis when assessing the investment attractiveness of regions. The conclusion is drawn about the relationship between the level of investment attractiveness and the presence of a strong regional management team capable of creating a favorable investment climate. On the example of the Kaluga region, which implements the cluster approach in the development strategy, an analysis of investment attractiveness is carried out using the rating methods of the Agency for Strategic Initiatives and the Rating Agency “Expert”. The role of the automotive, pharmaceutical and transport and logistics clusters in attracting direct investment to the region in 2017-2019 has been determined. The volume of investments in the regional economy and the change in the gross regional product of the Kaluga region for the analyzed period are analyzed. The study used a comparative method, analytical, method of economic and statistical analysis (use of statistical data). The main result of the study was to identify the reasons for the dynamics of factors of investment attractiveness. Recommendations are given for the optimal methodology for assessing investment attractiveness, in particular, on the need to provide open access to the rating results, to be adaptive, to realistically assess the regional gap and to take into account the investment and innovation activity.

ПЕРСПЕКТИВИ РОЗВИТКУ ВІЛЬНИХ МИТНИХ ЗОН В УКРАЇНІ

The need to create a free- trade zone with a significant level of trade liberalization in the framework of the implementation of the Association Agreement between Ukraine and the EU makes it necessary to research the current prospects for the development of free-trade zones in our country. The aim of the article is to research the development prospects of the free-trade zones in Ukraine in order to create the optimal conditions for increasing the level of investment attractiveness of regions and the country as a whole. The object of research is the development of free-trade zones in Ukraine. The methods used in the research are: methods of systematic, comparative and structural-logical analysis, graphical and abstract-logical methods. A research hypothesis was the assumption that ensuring the development of free- trade zones in Ukraine is possible through the introduction of reasonable changes in the regulatory framework for regulating their activities. Presentation of the main material: the order and features of functioning of free- trade zones in Ukraine are investigated; the current provisions of the national legal framework are analyzed, limiting factors and conflicts that hinder the development of free-trade zones are identified; developed recommendations for current legislation for the effective operation of free-trade zones in Ukraine; the scheme of movement and taxation of goods and services within the free-trade zone according to the presented recommendations is offered. The originality and practical significance of the research lies in the clear authentication of changes to the provisions of the current legal framework for the activities of free-trade zones in Ukraine, the implementation of which will create the optimal conditions for increasing the investment attractiveness of regions and the country as a whole. Conclusions and prospects for further research. Practice proves that the implementation of legal provisions on the activities of free-trade zones in Ukraine demonstrates the existence of economic and legal conflicts that prevent their effective development. To correct this situation and mitigate the impact of all existing threats on the Ukrainian trade system seems possible by making the proposed changes to the legal framework, the implementation of which will ensure the development of free- trade zones in Ukraine and create optimal conditions for increasing investment attractiveness of regions and countries in general.

Пріоритетні напрями підвищення інвестиційної привабливості туристичного регіону (на прикладі Дрогобицького району)

Paper highlights and characterises the peculiarities of determining the investment attractiveness of regions through the prism of influence factors. It is proved that the attractiveness of regions is influenced by factors at national and regional levels, among which tourism is of great importance. From the standpoint of tourism development, to increase the level of investment […]

The Investment Attractiveness of Regions as One of Entrepreneurship Development Factors

Summary Subject and purpose of work: The subject of the paper is entrepreneurship development and its determinants, with particular attention to the investment attractiveness of Polish provinces. The purpose of the paper is to identify the level of entrepreneurship development (between 2009 and 2017) and investment attractiveness (between 2009 and 2016) of individual provinces, and to define the correlation between the two features. Materials and methods: The authors of this paper analysed the literature on the subject and performed desk research using data from reports and studies published by GUS (Statistics Poland), PAPR (Polish Agency for Enterprise Development) and IBnGR (Gdańsk Institute for Market Economics). Results: In 2017, the number of SMEs* in Poland increased by over 24% in relation to 2009. The results showed a significant inversely proportional correlation between the number of enterprises per 1000 inhabitants and the one-year survival rate for the enterprises. The investment attractiveness of provinces was diverse. The level of investment attractiveness exerted a considerable influence on enterprise development in individual provinces. Conclusions: The results of the study showed that both the investment attractiveness and entrepreneurship are diverse in individual regions. A significant correlation was found between these two phenomena. Some exceptions to the rule were identified, which can be explained by divergence.

How attractive are municipal bonds for the passive competitiveness: the case of immunization of municipal bonds

Purpose This paper study regional attractiveness through passive portfolio investment based on duration, immunization and convexity (in case of higher interest rate volatility) of municipal bonds by using data from Standard and Poor’s. The massive variety of financial incentives to promote regional investment attractiveness is dependent on governmental strategy. Municipal bonds are the one of the most efficient ways of direct investments in the region, however, it is still a question of a good balance between a certain rate of return and an adequate risk. The purpose of this paper is to analyze the investment opportunities in municipal revenue bonds. Design/methodology/approach This study developed a model of investing using municipal bonds with the case of their immunization and analyze attractiveness of such investment. The theoretical model assumes a situation where the local government finances its capital projects through municipal revenue bonds. Such situations influence strongly on regional or local competitiveness provided by local government policy. Findings An analysis of the municipal bond market indicates that both municipal general and revenue bonds had stable and good level of yields to maturity in the past ten years. Their standard deviations were very low and in the past two years almost approached the level of standard deviations of treasury bonds. With the duration of 4–6 years on 5-year investment in municipal revenue bonds and their immunization, it is possible to provide good returns for investor. Research limitations/implications The limitation of this study concerns theoretical situation where local government will use non-market-based policy to reduce the interest rates and that will influence on rise of municipal bond liquidity premium (price distortion). This situation will make municipality bonds less attractive for investing, especially because of lower liquidity on secondary market. Also, this model is applicable in regions that have developed financial markets. Practical implications This research suggests governments a sustainable framework to use municipal bonds as a strategy for capital targeting in regions. Social implications This research is related to professional investors’ strategy with projects that have the highest investment potential; this is good way for an adequate allocation of resources (regional competitiveness). Originality/value This paper analyzes very rare subject involving local government strategy of finance and portfolio investment in municipal bonds. There is a huge gap in the literature on this issue. Also, this study provides the model that can be used as a case for higher local competitiveness.

Strategic Priorities and Principles of Increasing the Investment Attractiveness of a Resource Deficient Region

In the article the author focuses on the existing internal economic contradictions in regional development. The researcher indicates that classifying a region or including it into the regions lagging in economic development correlates with its resource supply taking into account the raw material nature of Russian economy. The article offfers the author’s interpretation of the concept of a “resource-deficient region”, as well as a gradation of the level of resource deficiency in the region: easy (acceptable) resource deficiency, sufficient (medium) resource deficiency, and deep resource deficiency. The author analyses one of the sources of more effective strategic development of resource deficit regions, it is the growth of investment attractiveness. The author has made a review of measures increasing the investment attractiveness of a region, developed by scientists and researchers. The strategic priorities of increasing the investment attractiveness of a resource-deficient region (depending on the degree of provision of resources) are proposed in terms of types of resources: financial, labor, natural, infrastructural, informational ones. The author has developed a system of principles for the growth of the investment attractiveness in a resource-deficient region (protection of investors’ interests, reasonable preferential conditions, economic feasibility of measures being developed, variability of measures increasing the investment attractiveness, optimal use of resources). The suggested principles allow optimizing the implementation of the tasks of forming the investment attractiveness of a resource-deficient region, creating the most comfortable conditions for internal and external investors, thereby increasing the competitiveness of the investment sector of a resource-deficient region, and developing measures to increase the investment attractiveness taking into account the specifics of a particular resource-deficient region. The author recommends reflecting the principles of increasing the investment attractiveness of a resource-deficient region in the main strategic documents that determine the development measures of a resourcedeficient region, linking them with tools to achieve strategic goals and objectives of the investment development of a resource-deficient region. The mechanisms of increasing the investment attractiveness of a resource-deficient region are studied based on the Chuvash Republic.

Forecasting of Capital Investments into the Fixed Capital in Regions Until 2024: Methods and Results of Territorial Forecast for Russia

The aim of the study is to improve the methodology of forecasting of the territorial proportions of fixed capital investments within the medium-term forecast of the social and economic development of Russia. The author proposes a method of decomposition of predicted national indicators at the regional level which takes into account the prospects of attracting private investments and implementing large investment projects with the state participation. The researcher describes the system of factors determining the interregional differences of private investors’ activity and forming the metric basis of complex estimation of the regional investment attractiveness using the official statistics. The paper presents the list and methods for estimating the indicators characterizing the production, financial, consumer, institutional, innovative, infrastructure and natural-resource components of the region’s investment potential, as well as social, environmental and technological regional investment risks. The paper shows the opportunities of using the functional relationship for the medium-term forecasting between the integral regional indicators of the investment attractiveness and activity. The national forecast has been decomposed by calculating the individual regional deviations of the forecasted national growth rate of fixed investment in Russia for 2019–2024. The developed variants of perspective territorial proportions confirm the possibility to achieve the national target of the forecast presented as a 25 percent share of the fixed investment in GDP of Russia and reflect the core perspective destinations of development for different parts of the country – the accelerated development of the Far East, the Arctic zone, the largest metropolitan areas of Russia, as well as the provision of national security in the geostrategic regions of the North Caucasus and Southern Federal Districts. The approach is designed to support the administrative decisions concerning the spatial development by linking regional and investment policy priorities.

Индустриальные парки как метод повышения инвестиционной привлекательности региона

Индустриальные парки как метод повышения инвестиционной привлекательности региона

Regulation for assessment of investment attractiveness of the Russian regions

The subject of this research is the procedure for assessment of investment attractiveness of the Russian regions. A favorable investment situation is an important factor for investors in making their decisions, and this requires a transparent, information comprehensible and methodologically simple tool for assessment of investment attractiveness of a region. There is a need to develop criteria for assessment investment attractiveness of the Russian regions, which would allow determining the competitive advantages or underachievement of the specific regions and formulating recommendations based on the acquired results of assessment of investment attractiveness of the Russian regions. The author proposes a 6-stage assessment procedure of investment attractiveness of the Russian regions, which would calculate the final indexes of the integral assessment of investment attractiveness for each region under consideration, with the possibility of further comparison of the indexes and their ratings. Each index is calculated on the basis of 6 to 11 variables, and reflects corresponding subsystem of the factors of investment attractiveness of a region. The developed assessment procedure of investment attractiveness of the Russian regions can be valuable for the potential investors for the purpose of minimization of possible losses, as well as or public authorities for analyzing the development trends of a region and investors’ behavior.

INFRASTRUCTURE SUPPORT FOR THE DEVELOPMENT OF REGIONAL ECONOMIC SYSTEMS

This article considers the problems of infrastructure financing, which is necessary for the successful development of regional economic systems. To identify the current problems in the development of investment attractiveness of the Russian regions, we selected the following factors: availability and level of provision of industrial, social, transport, and other infrastructure with facilities, government expenses on the creation and development of regional infrastructure. The study consists of several stages and is based on data published on the official websites of the World Bank, Gazprombank, the Ministry of Economic Development of the Russian Federation, and the Ministry of Regional Development of the Russian Federation. The study shows that the absolute leaders in terms of infrastructure investments are such countries as China, the United States, and India. In the total amount of infrastructure investments, transport infrastructure and telecommunications have an absolute advantage. In recent years, one of the development priorities of the Russian regions has been investing in physical culture and sports infrastructure facilities. This is due to major international sporting events and increasing the investment attractiveness of the regions. An important trend in the development of infrastructural support for the development of regional economic systems has been the conclusion of international investment transactions (IIT) and regional agreements. Most countries and regions, leading in the inflow of foreign direct investment, are the leaders in terms of infrastructure development at the same time.

Investment attractiveness of regions (trends and growth prospects)

Investment attractiveness of regions (trends and growth prospects)

THE ROLE OF BUSINESS PROCESSES OF THE ENTERPRISE IN THE FORMATION INVESTMENT ATTRACTIVENESS OF THE REGION

The article analyzes the role of business processes in the formation of investment attractiveness of regions based on the assessment of economic development of the territory. The business process of the enterprise is in fact any activity that takes place in the enterprise and has an "input product", adds to it a certain value or element, which in turn forms the output product for the final consumer. The article identifies the impact of business processes of the enterprise on the formation of economic attractiveness of the region. The structure of interaction between enterprises and investment policy in the middle of the above - mentioned economic zones is studied. An important element of the impact on regional development is the conditions of economic agglomeration, costs and benefits of agglomeration processes considered in the article, which in turn are formed in the conditions of regional infrastructure. Proved the relevance and adaptability of the matrix approach based on the comparison of individual indicators for conducting comprehensive research both at the enterprise level (business processes) and at the regional level (investment attractiveness). The main components of business processes of the enterprise in the article it is offered to consider management of labor resources, management of stocks and material resources, production capacity of the enterprise, and also information and technological resources. The main components of the region's investment attractiveness are investment potential, investment policy and investment climate. The study proposes to determine their interaction with each other and calculate the overall investment attractiveness based on the comparison of these components. In particular, the use of a matrix approach, in which it is possible to analyze both the general trend and specific indicators.This allows for further analysis and research, in particular the role of business processes in shaping the investment attractiveness of the region on the basis of various groups of indicators that simultaneously characterize both economic development of the region and business efficiency based on business process improvement.

Інвестиційна привабливість регіонів як основа сталого розвитку країни

Інвестиційна привабливість регіонів як основа сталого розвитку країни

Методический подход к оценке инвестиционной привлекательности локальной территории региона

Методический подход к оценке инвестиционной привлекательности локальной территории региона

Инвестиционная привлекательность региона

Инвестиционная привлекательность региона

Повышение инвестиционной привлекательности региона

Повышение инвестиционной привлекательности региона

ВСМ Екатеринбург — Челябинск как значимый проект для развития Уральской агломерации

The article explores the influence of realization of Yekaterinburg-Chelyabinsk high speed main line project on Ural agglomeration territory development, possible social and economic effects are pointed out. The project realization stages, planned amount of funding, HSML circuit, related infrastructure are looked upon. The prospects of the region as “a connecting link” in international transport corridor are identified. A conclusion is drawn about the fact that building and operation of high speed main line Yekaterinburg-Chelyabinsk will positively influence the development of regional economy and increase investment attractiveness of major projects.

Факторы и пути повышения инвестиционной привлекательности региона

Факторы и пути повышения инвестиционной привлекательности региона

Assessment of investment attractiveness of Voronezh region

The economic security of a state, its subject, and also a single organization is largely determined on the basis of the assessment of individual components of economic security. They are financial, intellectual and personnel, technical and technological, political and legal, environmental, informational, power components. A special place among the elements of the economic security of the region belongs to the investment factor, the magnitude of which is influenced by many factors from various fields of activity. The level of influence of factors on the investment potential of the Voronezh region is considered in the presented work. The article reflects possible methods for assessing investment attractiveness, among which the rating method and the method for evaluating individual statistical indicators are highlighted. The advantages and disadvantages of each of them are considered. In conducting the study, the authors used the analysis of statistical indicators, which allow assessing both the investment potential of the region and the investment risks that inevitably arise during the implementation of projects. As a result, industrial, labor, consumer, infrastructural, financial, institutional, innovation and resource potential of the Voronezh region, as well as economic, social, criminal and environmental risks were analyzed. For all the studied indicators, growth rates were calculated, indicating an increase or decrease in the investment attractiveness of the region over time. According to the results of the work done, it was noted that, despite the instability in changing some of the factors studied, the Voronezh Region occupies a worthy place in the Central Federal District (CFD) in terms of investment attractiveness and is the leader in terms of financial investments in the economy.

Fundusze Unii Europejskiej a atrakcyjność inwestycyjna polskich powiatów. Analiza powiązań przestrzennych

Jednym z podstawowych narzędzi polityki spojności UE są fundusze europejskie. Środki z nich wydatkowane są między innymi na działania wzmacniające konkurencyjność gospodarek i zwiększające atrakcyjność inwestycyjną regionow, rozumianą jako zdolność skłonienia inwestorow do wyboru regionu oferującego określone korzyści lokalizacyjne, wspomagające osiąganie zamierzonych celow.
 Fundusze UE mają szczegolne znaczenie dla wzmocnienia czynnikow sprzyjających lub osłabienia barier podnoszenia atrakcyjności inwestycyjnej regionow. W niniejszym artykule podjęta została proba oceny relacji zachodzących między wysokością wsparcia w ramach funduszy europejskich a atrakcyjnością inwestycyjną polskich powiatow. Badania przeprowadzone zostały na poziomie powiatow (NUTS 4), co pozwala na bardzo precyzyjną ocenę terytorialnego zrożnicowania atrakcyjności inwestycyjnej kraju. Głowny cel przedstawionych badań stanowiła ocena wpływu funduszy europejskich na atrakcyjność inwestycyjną powiatow z uwzględnieniem zależności przestrzennych. Cel dodatkowy to określenie poziomu atrakcyjności inwestycyjnej powiatow na podstawie wybranych miernikow cząstkowych oraz konstrukcja syntetycznej miary atrakcyjności inwestycyjnej. Analiza zależności przestrzennych w kształtowaniu się badanych miernikow atrakcyjności pozwoliła na określenie ich wzorca przestrzennego oraz identyfikację ośrodkow wpływających pozytywnie lub negatywnie na jednostki sąsiednie. Przeprowadzone badania dowodzą występowania znacznych rożnic w poziomie atrakcyjności inwestycyjnej powiatow (do najbardziej atrakcyjnych należą powiaty: m. st. Warszawa, m. Sopot, m. Krakow, m. Katowice, m. Świnoujście). Wyniki modeli przestrzennych wskazują, że istotny, dodatni wpływ na atrakcyjność inwestycyjną danego powiatu wywiera nie tylko poziom wykorzystania funduszy europejskich w powiecie macierzystym, ale rownież absorpcja tych funduszy w powiatach sąsiednich.