Regional Investment Policy Research Articles

The Spatial Spillover Effects of Transportation Infrastructure on Regional Economic Growth—An Empirical Study at the Provincial Level in China

This study examines the spatial spillover effects of transportation infrastructure on regional economic growth, utilizing panel data from 31 provincial-level administrative divisions in China from 2003 to 2022. Using the spatial Durbin model (SDM) and three distinct spatial weight matrices—0–1 adjacency, spatial economic–geographical nested, and GDP-based economic distance matrices—this study comprehensively analyzes the multifaceted impacts of transportation infrastructure. The results show that transportation infrastructure significantly promotes economic growth in both local and neighboring regions across all spatial weight matrices. The total effect is most pronounced in geographically proximate regions, with a coefficient of 7.845 (p < 0.01). Regions with similar economic development levels also show strong collaborative effects, with a coefficient of 2.074 (p < 0.01), although the marginal effect of transportation infrastructure diminishes. Furthermore, adjustments in industrial structure and innovation inputs demonstrate a short-term inhibitory effect on economic growth, highlighting the need for synchronized development of transportation infrastructure alongside industrial and innovation policies. This study incorporates multi-dimensional spatial weight matrices to systematically reveal the direct and indirect impacts of transportation infrastructure on regional economies, providing essential empirical support for regional coordination and infrastructure investment policies. The findings offer valuable insights for infrastructure planning in other regions, particularly in formulating policies that promote cross-regional economic cooperation and optimize resource allocation.

Regional investment potential as a factor in achieving technological sovereignty in key sectors of the Russian economy

Aim. To develop a model of interrelation of factors and tools for increasing the region’s investment potential, aimed at accelerating the processes of achieving technological sovereignty in key sectors of the Russian economy by increasing the efficiency of regional investment policy on its basis.Objectives. To study the main approaches to understanding the essence and role of technological sovereignty; to group the key factors and tools for managing the region’s investment potential, to give their generalizing characteristic; to develop an algorithmic model of the relationship between factors and tools for increasing the region’s investment potential; to identify the main discussion aspects in understanding the essence and objectives of managing the level of investment potential of the region and technological sovereignty of the national economy.Methods. The principles and approaches of general scientific methods of scientific cognition: historical, logical, comparison, dialectical, system approach, structural-functional analysis, qualitative analysis and synthesis served as the methodological basis of the research.Results. Purposeful management of factors of the region’s investment potential allows to use its objective and potential advantages as an object of investment investments more effectively. In this regard, it seems reasonable to use a complex algorithmic model of interrelation of factors and tools to increase the investment potential of the region. The model proposed by the authors includes three groups of factors and related tools for the analysis of investment potential, as well as a block of generalizing tools for its comprehensive development. Technological sovereignty in modern conditions to a greater extent acquires the role of an effective protective mechanism of national identity and subjectivity for the states facing the problems generated by the external environment. The task of ensuring technological sovereignty today is a rational response to the rapidly changing world order, in which opportunities for free trade and international cooperation are no longer guaranteed in equal proportions to the countries concerned, which becomes a significant factor in their global vulnerability; it is an opportunity for more active development of national scientific and production potential, which will contribute to a relative equalization of the existing imbalances in the levels of technological development with the international community; is the first priority need to take into account long-term systemic effects, rather than current economic benefits, when making decisions on the conscious rejection or priority development of certain competencies, technological niches, types of production at the national and regional levels.Conclusions. High dynamism due to fierce competition in the technological sphere requires from federal and regional government bodies systematic systematic work aimed at ensuring a high level of investment attractiveness of key sectors and segments of the economy. Strengthening the role and attention to the issues of investment policy management due to the achieved level of investment potential both at the level of individual regions and industries, and the country as a whole, is now associated not only with current economic interests, but also with the strategic priorities of national identity and preservation of statehood. At the national level, it is necessary to form and regularly adjust the list of critical products and technologies, key industries that require continuous development while maintaining a leading rate of investment in research and development in order to create demanded and competitive products and services on their basis.

Special economic zone efficiency factors given Russia's circumstances

Subject. This article discusses the importance of special economic zones in solving problems related to attracting investors, supporting regions of concern, and creating regional growth poles. Objectives. The article aims to consider the impact of economic and geographical location, characteristics of the region of base, the investment policy implementation quality, and the level of tax burden on the efficiency of Russian special economic zones. Methods. For the study, we used the Data Envelopment Analysis (DEA) technique, and a regression analysis. Results. The article presents the results of the analysis of the effectiveness of budget investments in the infrastructure of various special economic zones in Russia. Conclusions. The quality of the implementation of the regional investment policy has the most significant impact on the success of the development of special economic zones. Improving the methodology for assessing the effectiveness of special economic zones requires the collection and use of information on the results of scientific, technical and innovative activities of residents, taking into account the practices of the Ministry of Science and Technology of China.

Assessment of the Effectiveness of Regional Investment Policy in Terms of Ensuring the Technological Sovereignty of the Economy

Assessment of the Effectiveness of Regional Investment Policy in Terms of Ensuring the Technological Sovereignty of the Economy

Механизмы зрелости регионального инвестиционного стандарта как фактор повышения инвестиционной активности территорий Российской Федерации

The research relevance is determined by the need to assess the potential of transformations in the activities of public authorities to attract investment in regions and municipalities. The article considers the processes of dynamic changes in the mechanism of the regional investment standard, determined by the investment needs of the country's regions and implemented in the form of elements of fine-tuning the current mechanism. The authors determine the results of the implementation of the second-generation regional investment standard and identify the reserves for the development of its tools, substantiate the processes of transformation and maturity which meet modern macroeconomic challenges and priority goals of economic growth. The maturity mechanisms of the third-generation regional investment standard are briefly characterized. The correlation of new elements of regional and municipal investment standards is determined. The problem field of interfacing these mechanisms in the process of their implementation is outlined. At the stage of unification of elements of the municipal investment standard and coordination of actions of regions and municipalities to increase investment activity, generalization of regional experience in order to identify successful practices for their further replication is of practical interest. The conditions of applicability of the regional investment standard maturity mechanisms for increasing the investment activity of territories are: unification of approaches to the implementation of elements of the municipal investment standard; interfacing of elements of regional and municipal investment standards in order to create conditions for the implementation of proactive investment strategy of municipalities; generalization and replication of successful practices of territories on the integration of the municipal standard in the system of regional investment policy. The results of implementing the regional investment standard should be: the dynamics and structure of investments (growth of the volume of investments); increase (taking into account possible expansion) of the number of investors; growth of the degree of trust and satisfaction of business with actions of the authorities.

Узагальнення методології аналізу інвестиційних процесів у регіоні

The article updates the issue of developing a methodology for analyzing investment activity and investment development at the regional level. The aim of the study is to generalize and further develop the methodological principles of analyzing investment processes at the regional level. It is proved that the analysis of investment processes in the region gives a more complex picture regarding the volumes, dynamics, structural characteristics and efficiency of investment activities in the regional economy. In general, in order to carry out a systematic and comprehensive analysis of the processes of development of investment activity and activity in the region, it is important to form a full-fledged regulatory and methodological support, consisting of approaches, methods and tools of analysis and diagnostics, as well as a system of indicators. It is established that the results of the analysis are conclusions regarding, on the one hand, the investment activity of economic entities, and, on the other hand, the quality of the regional investment policy. It has been proven that the regulatory and methodological support for the analysis of investment processes in the region consists of two blocks: (1) microeconomic, (2) macroeconomic. It is determined that the criterion of the first block is the ease (operational, cost-effectiveness, efficiency) of passing through the stages of the investment process, while the second block is the contribution (volume, structure, quality) of investments to the socioeconomic development of the region. It is substantiated that the introduction of the system of analysis of the investment environment at the regional level involves the following procedural stages: institutionalization of the practice of analysis; formation of resource support; identification of persons responsible for the analysis; consolidation of the system of indicators prepared by official statistics bodies; forming a database of experts; development of clear regulations for surveying and evaluating the characteristics of the investment environment; determination of procedures for "reaction" of authorities to the results of the analysis, publication of the results.

МОЖЛИВОСТІ ІМПЛЕМЕНТАЦІЇ СВІТОВОГО ДОСВІДУ РЕАЛІЗАЦІЇ МЕХАНІЗМІВ ДЕРЖАВНОЇ ІНВЕСТИЦІЙНОЇ ПОЛІТИКИ НА РЕГІОНАЛЬНОМУ РІВНІ

The article analyzes various approaches, ways, forms and methods of state support for investment activities used in global practice. At the same time, the generalization of the relevant experience was carried out in two directions: general approaches and practices regarding the activation and efficiency of investment activities, in particular in the conditions of the crisis state of the economy, its insufficient investment attractiveness and instability; a specific toolkit used in the conditions of war and post-war reconstruction of the national economy. The purpose of the study was to generalize the world experience of implementing state investment policy mechanisms and to identify opportunities for their implementation in Ukraine at the regional level. The leading provisions of the world experience regarding the formation and implementation of regional investment policy are defined, in particular in the aspects of the goal and objectives of the regional investment policy, its mechanisms and the expected results of their implementation, the system of tools for supporting and developing investment activity. The main quality and efficiency criteria of the regional investment policy are identified, namely the volume and specific characteristics of investments, as well as the rationality of their structure, financing and use. At the same time, two conditions should be considered basic: transparency of the competitive environment and state control over strategic enterprises, types of economic activity, and sectors. It has been established that a sufficiently extensive toolkit of regional investment policy has been developed through world experience. In particular, effective tools of regional investment policy in conditions of critical instability are: insurance of military risks, their diversification; using the possibilities of concession agreements; private-public investment in defense industry and industries / sectors of critical infrastructure; support of innovative technological startups in the spheres of security, the real sector of the economy, infrastructure; stimulation of investments in the field of preservation of human potential; support for investments in business projects of demobilized people, war veterans, etc. participants in hostilities; stimulating investments in the development of export potential to preserve the country’s financial security.

Electoral effects of investment subsidies in national and European elections

ABSTRACT Extensive research has focused on political movements against regional integration and globalisation to understand the causes and consequences of their political success in developed democracies. However, studies on the effectiveness of large-scale institutional efforts to hinder this political development have been limited. My paper investigates the electoral effects of one of the largest investment subsidy programs in the world, the European regional investment policy. Even though it distributes billions of Euros each year to foster economic and social cohesion, it is unclear whether these fiscal transfers produce any tangible electoral effects. I argue that, in this case, supranational institutions have been successful in taking credit, making heavily targeted regions infertile grounds for the electoral success of eurosceptic parties. Leveraging the NUTS-level election dataset (EU-NED) and regression discontinuity models, this paper is the first to investigate the causal link between investment subsidies for less developed regions and electoral support for eurosceptic parties in national and European elections. The analysis shows that high fiscal transfers to less developed regions cause lower levels of Eurosceptic voting.

Evaluating Implementation Uncertainties and Defining Safe Operating Spaces for Deeply Uncertain Cooperative Multi‐City Water Supply Investment Pathways

AbstractUrban water utilities are increasingly exploring cooperative regional water supply investment and management strategies due to climate change and growing demands. Theoretically, regional cooperative agreements promise improved resource efficiency by realizing economies of scale, adding flexibility for achieving improved supply reliability, and, ideally, limiting individual and collective financial risks. However, there has been little research exploring how implementation uncertainties in the partners' cooperative actions shape infrastructure investment and management pathways' robustness and drive counterparty risks. Counterparty risks potentially exacerbate collaborating partners' vulnerability to the supply and financial challenges they initially sought to mitigate through cooperation. To address these concerns, we introduce the safe operating spaces (SOS) for Deeply Uncertain Water Supply Pathways (DUSOSPathways) framework. The framework, demonstrated on the multi‐city Sedento Valley benchmarking test case, facilitates the formal characterization of the effects of implementation uncertainty within cooperative regional water supply investment and management policy pathways. Results demonstrate the path‐dependent effects of implementation uncertainties in short‐term operational drought mitigation instruments and long‐term infrastructure investments. Our analysis further reveals the potential for increased regional conflict due to asymmetries between partners' vulnerabilities to the actions of cooperating partners that can be exacerbated by other deeply uncertain factors that reduce their robustness (e.g., demand growth rates). The study finally delineates SOS, beyond which utilities experience robustness degradation and increased vulnerabilities to future uncertainties to guide implementation of cooperative policy pathways. Overall, this framework is broadly applicable to regional systems seeking to navigate complex cooperative regional water supply investment and management policy pathways.

INCREASING INVESTMENT ATTRACTIVENESS IN THE DEVELOPMENT OF THE NATIONAL ECONOMY

In the conditions of economic reforms, it is becoming important to study how to increase the competitiveness of the national economy by assessing the attractiveness and potential of the investment environment, analysing the effect of the rational location of productive forces, carrying out interregional natural-demographic, administrative-economic, regional investment policy, ensuring investment activity.

Методика оценки эффективности региональной инвестиционной политики субъектов Российской Федерации

Objective and reliable information on the investment results, as well as the methodology for their comprehensive assessment are necessary to make effective investment decisions. The conducted analysis of modern investment ratings revealed numerous methodological problems. Thus, the present study aims to develop a new and promising tool for examining the investment attractiveness of Russian regions and assessing the effectiveness of their investment policy. Kaplan and Norton’s balanced score-card model is used as the main research method. The configuration of the balanced scorecard was determined in accordance with the key investment factors; it includes four components: development; natural resource; political, economic and social; production and financial. The study identified main assessment indicators connected with the key investment factors and information needs of investment actors (pubic authorities, private investors, population). Additionally, the article proposed assessment methods and a measuring system based on the target values of indicators, depending on the objectives of regional investment policy. To determine the achievement of these objectives, the target and actual (showing the investment results) values of indicators were compared. The significant deviation of these values allowed us to establish priorities of regional investment policy. Based on the data from the Federal State Statistics Service, the developed methodology was tested on regions of the Russian Arctic. The natural resource component positively influences the investment attractiveness of these regions, while the development component has a negative impact. The revealed differentiation and multidirectional dynamics of integral indicators indicate an imbalance in certain areas of the investment policy of these regions (excluding the Republic of Sakha (Yakutia)), limiting the realisation of their investment potential. Based on the research results, ways to increase regional investment attractiveness were described.

Factor Analysis of Fixed Capital Investments: Regional Aspect

This paper aims to develop a multifactor model of the impact of attracting investment in the fixed capital of a region. To this end, the authors conducted a factor analysis of regional investment attractiveness. Correlation and regression analysis served as the methodological basis for determining the qualitative dependencies of regional fixed capital investments. Testing of the examined model allowed the authors to identify dependencies between controlled variables (factors that can be influenced at the regional level) and the resulting indicator (investment in the fixed capital of a region) for the Russian federal subjects. The significance of the model lies in the possibility of developing practical measures (focused on specific conditions of territorial functioning) to improve regional investment policies.

On the issue of improving the regional investment policy in the agro-industrial complex of the south of the Tyumen region

On the issue of improving the regional investment policy in the agro-industrial complex of the south of the Tyumen region

Investment policy of the Russian Federation and its subjects

In the conditions of modern economic development, the subjects of the Russian Federation are given an increasingly important role in increasing the scale and priorities of their investment activities. The formation and implementation of the investment policy of the regions of the Russian Federation is becoming, in general, an important innovative and socially oriented direction of the economic policy of the Russian state. The primary and twofold goal of the regional investment policy is the mobilization of state investment resources while creating favorable and comfortable conditions for the activation of investment activity. It is in the constituent entities of the Russian Federation that projects are being implemented to modernize the production potential, structural shifts in the region’s economy are being laid and developed, and the necessary economic and social facilities are being created again. According to the majority of economists, the problems of investment policy, all its most important directions, have been and remain relevant, in general, for the Russian Federation and its regions: the emasculation of the economic essence of investment, investment recession, i.e. an increase in the number of subjects of the Russian Federation with decreasing volumes of investment activity.

The role of public-private partnership in the development of the Russian Regions' infrastructure

Subject. This article discusses the importance of infrastructure investment for the socio-economic development of the regions of Russia. Objectives. The article aims to analyze the regional investment policy from the perspective of the development of public-private partnership. Methods. For the study, we used a cluster analysis. Results. The article proposes a typology of the subjects of the Russian Federation, using indicators related to investments in infrastructure and development of public-private partnerships. The article finds that the possibilities of public-private partnership as a mechanism are not fully used, which is due to institutional factors and limited access to financial resources. Conclusions. The creation of specialized competence centers and development of public-private partnership institutions will contribute to the formation of a more effective investment policy in the regions of Russia.

Analyzing the Dynamics of Indicator System Showing Implementation of Investment Policy on the Regional Level

The article proposes to split the results obtained by implementing investment policy of the regional level into direct and indirect ones. The direct results are connected with investment inflow into regional economy and impact different aspects of social and economic development of the territory, they cover indicators of investment activity, economic growth and technological development as well as figures showing standard of living and quality of life of the population. The indirect results of implementing regional investment policy are caused by direct results and have a certain interconnection with the volume of investment into fixed capital. The Urals Federal Area acted as an object of the analysis. To estimate the dynamics of the regional investment policy results the average annual rate of relevant indicator growth was calculated. According to the analysis interpretation, the best results for direct figures were reached in the Tyumen region without autonomous districts and the Sverdlovsk region, the worst ones – in autonomous districts. The best results for indirect indicators were attained in the Yamalo-Nenetskiy autonomous district and the Kurgan region, the worst ones – in the Khanty-Mansiyskiy autonomous district. Finally, a conclusion was drawn concerning causes of the situation and recommendations dealing with further investment development of the Urals Federal Area were compiled. Topicality of this subject defined the goal of the article, i. e. analyzing the dynamics of indicator system showing results of implementing regional investment policy in general and investment activity in particular. Such academic methods as analysis, synthesis, comparison and summarizing of scientific information were used in the article.

Investment attractiveness of the region’s development pole: methodology and analysis

The aim of the study is to develop scientific and methodological provisions for assessing the investment attractiveness of the region’s development poles and their approbation on the materials of the Sughd region of the Republic of Tajikistan. At the same time, a methodology should be developed for determining and justifying the capital investment objects with the highest return of the region’s development pole and growth point. The main objective of the research paper is to assess the investment attractiveness of the development poles as objects that most effectively use the region’s limited resources. The research methods are based on the principles of system-complex, deterministic and causal approaches in combination with the principle of dynamism. In relation to the Tajik regions considered as quasi-economy, the following range of indicators has been substantiated and proposed: the region’s enterprises production total profitability; market conditions (the industry production volumes dynamics and the development poles); competitive situation (the large competitors number in the region); the ratio of profitable and unprofitable enterprises; average labour productivity; the growth locomotives presence in the region. Based on the accounting and analysis of these indicators, a comparative assessment of the investment attractiveness of the North Development Pole and the food industry of the Sughd region of the Republic of Tajikistan has been carried out. It has been proved that the investment attractiveness of the development pole is 2.3 times higher than the investment attractiveness of the food industry chosen as a base for comparison. The results of the study can be used in the regional investment policy development processes and state regulation of spatial development.

Foreign Experience in the Implementation of Regional Investment Policy and the Possibility of Its Application in Russia

This article examines the features and trends in the implementation of state investment policy at the level regions in selected foreign countries. The author conducts a comparative analysis of the investment policy of the selected countries, identifies the priorities, tools and goals for the implementation of the analyzed investment policy practices. The author concludes that it is possible to use the best foreign practices in the implementation of investment policy at the Russian regional level.

Regional Investment Policy: Improvement of the Mechanism and Principles of Formation

Bimbolat Kh. Dreev North Ossetian State University named after K.L. Khetagurov

Разработка и апробация методического подхода к оценке эффективности региональной инвестиционной политики

The level of development of the regional economic system in modern conditions significantly depends on the quality and elaboration of the implemented investment policy. In this paper, the author presents a comparative analysis of existing methodological programs dedicated to assessing the effectiveness of regional investment policy. According to the results of the analysis, it was found that most of the methodological approaches are based on such methods as comparing the growth rates of investments with the growth rates of the gross regional product, integral assessments, analysis of the qualitative component of regional investment policy, and so on, in connection with which it is concluded that in public administration there is a need to develop improved methods for assessing the effectiveness of regional investment policy that are complex and available to researchers (in terms of open information data). The author proposes a methodology for assessing the effectiveness of regional investment policy; the methodological framework is based on the ideology of a systematic approach, in which investments have an impact on all aspects of the socio-economic development of the region. The proposed methodological approach is based on two groups of indicators directly and indirectly related to the receipt of investments in the region. Direct indicators for assessing the effectiveness of regional investment policy are related to the overall socio-economic development of the territory and include three independent blocks: indicators of investment activity, indicators of economic growth, and indicators characterizing the level and quality of life of the population. Indirect indicators are not divided into separate blocks within the framework of the methodology and are considered in unity. In the process of the methodology, summary indices for each group of direct indicators and a generalizing integral index are calculated, which makes it possible to make a final conclusion about the effectiveness of the implementation of regional investment policy. The results of the interpretation of the indices make it possible to identify the strengths and weaknesses of the current regional investment policy and, taking this into account, develop promising areas for its improvement.