Determinants of Investment Attraction to Economic Growth Points of the Russian Far East

Abstract

Due to the sanctions imposed by foreign states, modern Russian economy greatly depends on the economy of the Far East characterised by the formation and stimulation of investment in the territories of advanced development (TADs). However, at the present stage, economic growth measures are not working effectively in all Far Eastern regions. The article presents the results of an analysis of factors shaping the investment attractiveness of the territories of advanced development established in the Russian Far East. The study examines regional socio-economic indicators, accounting statements of residents and non-financial information on business reputation of enterprises. Since territories of advanced development are considered economic growth points of the Russian Far East, the research aims to identify relevant patterns and rank TADs according to the importance of the factors of investment potential and risks. To this end, the methods of econometric analysis and modelling were applied. The developed methodology for assessing investment attractiveness includes indicators adapted for TADs, component factor analysis and modelling. Based on the analysis, factor models were constructed and the factors were grouped according to their impact on the investment potential and risks of the territories of advanced development of the Far Eastern Federal District. The obtained results indicate that the initial development stage of economic growth points is characterised by various financial and social problems, insufficient investment and uneven distribution of investments to ensure advanced economic growth. The established factor models explain the importance of creating a favourable investment environment, attracting investments for the construction of infrastructure, increasing the efficiency of resource potential in the Far Eastern regions. Factors of the internal business environment of residents — financial condition and the initial stage of enterprise operation from the moment of state registration — are seen as constraining. Priority ranking of factors revealed key directions for improving the mechanism for attracting and distributing investments in the regions. Additionally, it can help coordinate the work of government bodies, development institutions and entrepreneurship and direct business support measures to important areas of territorial development, reducing the impact of constraining factors and risks.