IDEAS home Printed from https://ideas.repec.org/a/acf/journl/y2019id972.html
   My bibliography  Save this article

Factors of Investment Attractiveness of Russian Regions

Author

Listed:
  • D. V. Shcherbakova
  • A. A. Medved

Abstract

Purpose. National and international strategic capital is looking for favorable conditions for preservation and enhancement, respectively, institutional factors of investment attractiveness of Russia’s regions are crucial for ensuring sustained economic growth and prosperity. Gradually, there is a tendency to avoid formal financial assessments of investment projects in favor of a deeper institutional and economic analysis. In this regard, the role of information and analytical agencies specializing in determining the level of investment attractiveness of countries and regions is growing. The article analyzes the factors of the investment attractiveness of the regions of the Russian Federation in order to identify the reasons for the insufficiency of capital investments. The main goal, therefore, is to assess the dynamics of institutional factors of the investment attractiveness of Russian regions and develop recommendations for improving the situation.Methods. The ratings, developed by Expert RA as the most authoritative organization in this area of Russian jurisdiction, were taken as a basis for the analysis. When writing a work, we use data analysis methods, a logical method, an aggregation method.Results. As a result of the study, it was found that the problem under investigation is that in the Russian economy there is a significant gap in the regions in terms of investment activity, which contradicts the principle of the single economic space of the country. At the same time, for all components of investment risk, the ratings of the regions are fairly stable by the location of the subjects of the federation. A feature of the ratings, fixed for a long time of observations, is stability with the presence of explicit regions-leaders. This situation reflects the low dynamic mobility of the country’s investment space. Also traditional for both donor regions and recipient regions is the operation of previously created investment conditions for conducting economic activities. In this way, the efforts of the regional authorities to attract investors are often inadequate or ineffective. Conclusions. In the paper the possible reasons for the investment regional gap are analyzed on the basis of the analysis of institutional factors are determined. Recommendations are given on the areas of work in order to improve the investment climate in the regions of the Russian Federation from the point of view of institutionalization.Â

Suggested Citation

  • D. V. Shcherbakova & A. A. Medved, 2019. "Factors of Investment Attractiveness of Russian Regions," Administrative Consulting, Russian Presidential Academy of National Economy and Public Administration. North-West Institute of Management., issue 11.
    • Handle: RePEc:acf:journl:y:2019:id:972
    DOI: 10.22394/1726-1139-2018-11-119-131
    as

    Download full text from publisher

    File URL: https://www.acjournal.ru/jour/article/viewFile/972/951
    Download Restriction: no
    File URL: https://libkey.io/10.22394/1726-1139-2018-11-119-131?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Timothy Besley & Hannes Mueller, 2018. "Institutions, Volatility, and Investment," Journal of the European Economic Association, European Economic Association, vol. 16(3), pages 604-649.
    2. Easterly, William & Levine, Ross, 2003. "Tropics, germs, and crops: how endowments influence economic development," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 3-39, January.
    3. Daron Acemoglu & Simon Johnson & James A. Robinson, 2002. "Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1231-1294.
    4. Voigt, Stefan, 2013. "How (Not) to measure institutions," Journal of Institutional Economics, Cambridge University Press, vol. 9(1), pages 1-26, March.
    5. N/A, 2002. "About the Authors," Journal of Developing Societies, , vol. 18(2-3), pages 286-289, June.
    6. Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2002. "The Regulation of Entry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 1-37.
    7. Daron Acemoglu & Simon Johnson, 2005. "Unbundling Institutions," Journal of Political Economy, University of Chicago Press, vol. 113(5), pages 949-995, October.
    8. Olivier Blanchard & Andrei Shleifer, 2001. "Federalism With and Without Political Centralization: China Versus Russia," IMF Staff Papers, Palgrave Macmillan, vol. 48(4), pages 1-8.
    9. William Pyle, 2011. "Organized Business, Political Competition, and Property Rights: Evidence from the Russian Federation," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 27(1), pages 2-31.
    10. Michael Rochlitz, 2014. "Corporate raiding and the role of the state in Russia," Post-Soviet Affairs, Taylor & Francis Journals, vol. 30(2-3), pages 89-114, May.
    11. Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2004. "Do Institutions Cause Growth?," Journal of Economic Growth, Springer, vol. 9(3), pages 271-303, September.
    12. Voigt, Stefan, 2013. "How (not) to measure institutions: a reply to Robinson and Shirley," Journal of Institutional Economics, Cambridge University Press, vol. 9(1), pages 35-37, March.
    13. S. S. Vinokurov & A.A. Medved & L. A. Mierin, 2018. "Economic News and Household Decisions," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 12(1), March.
    14. Andrew Warner, 2002. "Institutions, Geography, Regions, Countries and the Mobility Bias," CID Working Papers 91, Center for International Development at Harvard University.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Baranov, Alexey & Malkov, Egor & Polishchuk, Leonid & Rochlitz, Michael & Syunyaev, Georgiy, 2015. "How (not) to measure Russian regional institutions," Russian Journal of Economics, Elsevier, vol. 1(2), pages 154-181.
    2. ROUGIER Eric, 2015. ""The parts and the whole”: Unbundling and re-bundling institutional systems and their effect on economic development," Cahiers du GREThA (2007-2019) 2015-12, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    3. Una Okonkwo Osili & Anna L. Paulson, 2006. "What can we learn about financial access from U.S. immigrants?," Working Paper Series WP-06-25, Federal Reserve Bank of Chicago.
    4. Bhattacharyya, Sambit, 2009. "Unbundled institutions, human capital and growth," Journal of Comparative Economics, Elsevier, vol. 37(1), pages 106-120, March.
    5. Essiane, Patrick-Nelson Daniel, 2020. "De l'Ancienne Economie Institutionnelle à la Nouvelle Economie Institutionnelle: une introduction à quelques débats [Old Institutional Economics and New Institutional Economics: an Introduction to ," MPRA Paper 102858, University Library of Munich, Germany.
    6. Levon Barseghyan, 2008. "Entry costs and cross-country differences in productivity and output," Journal of Economic Growth, Springer, vol. 13(2), pages 145-167, June.
    7. Levon Barseghyan & Riccardo DiCecio, 2008. "Institutional causes of macroeconomic volatility," Working Papers 2008-021, Federal Reserve Bank of St. Louis.
    8. Polishchuk, Leonid, 2010. "Misuse of Institutions: Lessons from Transition," WIDER Working Paper Series 075, World Institute for Development Economic Research (UNU-WIDER).
    9. Alex Trew, 2012. "Contracting Institutions and Development," Review of Economics and Institutions, Università di Perugia, vol. 3(3).
    10. Congdon Fors, Heather & Olsson, Ola, 2007. "Endogenous institutional change after independence," European Economic Review, Elsevier, vol. 51(8), pages 1896-1921, November.
    11. Steven N. Durlauf & Andros Kourtellos & Chih Ming Tan, 2012. "Is God in the details? A reexamination of the role of religion in economic growth," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 27(7), pages 1059-1075, November.
    12. Theo S. Eicher & Andreas Leukert, 2009. "Institutions and Economic Performance: Endogeneity and Parameter Heterogeneity," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 41(1), pages 197-219, February.
    13. Simeon Djankov & Jose Montalvo & Marta Reynal-Querol, 2008. "The curse of aid," Journal of Economic Growth, Springer, vol. 13(3), pages 169-194, September.
    14. Casson, Mark C. & Della Giusta, Marina & Kambhampati, Uma S., 2010. "Formal and Informal Institutions and Development," World Development, Elsevier, vol. 38(2), pages 137-141, February.
    15. Sazzadul Arefin, 2019. "Geographic Endowment, Corruption, and Economic Development," Business and Economic Research, Macrothink Institute, vol. 9(1), pages 1-32, March.
    16. Jones, Patricia, 2013. "History matters: New evidence on the long run impact of colonial rule on institutions," Journal of Comparative Economics, Elsevier, vol. 41(1), pages 181-200.
    17. Raphael A. Auer, 2013. "Geography, institutions, and the making of comparative development," Journal of Economic Growth, Springer, vol. 18(2), pages 179-215, June.
    18. Daniel Albalate & Germà Bel & Ferran A. Mazaira‐Font, 2022. "Geography and regional economic growth: The high cost of deviating from nature," Journal of Regional Science, Wiley Blackwell, vol. 62(2), pages 360-388, March.
    19. Katja Kalkschmied, 2020. "Rebundling Institutions," Graz Economics Papers 2020-03, University of Graz, Department of Economics.
    20. Aparicio, Sebastian & Audretsch, David & Noguera, Maria & Urbano, David, 2022. "Can female entrepreneurs boost social mobility in developing countries? An institutional analysis," Technological Forecasting and Social Change, Elsevier, vol. 175(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:acf:journl:y:2019:id:972. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://sziu.ranepa.ru .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.