Academic journal article Asian Social Science

The Investment Climate in Russia and Its Regions

Academic journal article Asian Social Science

The Investment Climate in Russia and Its Regions

Article excerpt

Abstract

In article the main questions of forming of the investment climate of Russia and its regions are considered. Research purpose is the analysis of the investment climate of Russia and its regions, and also determination of priorities of its development. Scientific novelty consists in identification of factors (social, economic, organizational, legal, political, social cultural), having impact on the investment climate. At the heart of the investment climate investment appeal which understands as availability of the certain conditions influencing the investor for a choice of this or that investment object lies. By results of the conducted research it is possible to allocate two main components of the investment climate or investment appeal of the country (region): objective opportunities of the region-an investment potential and conditions of activities of the investor-investment risk.

Keywords: investments, investment climate, investment risk, investment potential

1. Introduction

Now the problem of investment development of Russia is very actual (Obukhova, 2014). For the country is particularly acute need of upgrade and updating of fixed assets, rearmament of the existing equipment for the purpose of increase of competitiveness of operating plants, and also investments in innovative projects (Drozdova, 2012). The government actively propagandizes similar ideas. Nevertheless, the main task isn't solved-first of all it is necessary to create comfortable conditions for investors. Set of social, economic, organizational, political, and legal and ethno cultural prerequisites also form the investment climate of the country or this or that region (Igonina, 2010). Research of these processes extremely important both at the level of all country and at the level of the certain region as for Russia considerable distinctions in the investment climate of subjects of the Russian Federation are characteristic (Minakova & Prasolov, 2010). Therefore for effective development it is necessary to consider these features. Improvement of the investment climate will allow to increase rates of economic growth, and also to improve a social position of the population (Yashin & Sapozhnikova, 2009).

Investments play an important role in development of economy of any country, promoting reproduction expansion, development of new occupational sectors and development of scientific and technical base. However inflow of investments depends on various factors, main of which-the investment climate of the country (Obukhova, 2013). The favorable investment climate stimulates business structures to increase of efficiency of activities that leads to growth of the income and the equity available to investment. The investment climate increases trust of investors to the country, state actions in economy, gives "signal" for long-term investment (Mashkina, Obukhova, & Seryogin, 2013).

The investment climate as economic category became a subject of close attention not only scientists, analysts and experts, but also accounting entities, politicians, entrepreneurs.

2. Technique

Dynamic and effective development of investment activity is a needful condition for stable functioning of the region and national economy development in general. Forming in the country of institutes and the effective economic mechanism promotes creation of real interest of the physical persons and legal entities involved in transactions of investment type which bring in a result to increase in the income and the economic growth, profitable community as a whole (Osipov, 2008).

The assessment of the investment climate based on the analysis of the factors which define the investment climate and promote economic growth. Output parameters and input parameters are usually applied in country. Input parameters define the output parameters value and determine the countries potential on development of investments and risk of their implementation. …

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