ANALYSIS OF INVESTMENT CLIMATE IN RUSSIA BY THE EXAMPLE OF FOREIGN DIRECT INVESTMENT

  • Singatullina, G.
  • Altman, K.
Abstract:
Creating and maintaining a strong investment climate in the economy is the important initial precondition for solving problems to ensure economic growth and competitiveness of the country in terms of its integration into the world economy. Despite the fact that the Russian market has the potential to become attractive for foreign investors, it is characterized by unpredictability, which prevents the flow of foreign investments into the country. Our retrospective analysis showed that the formation of a positive investment climate is largely dependent on political and economic stability in the country, which was affected by the crises in 1998, 2008 and 2014. Nowadays, despite the improvement of certain factors influencing investment attractiveness, such as forming the business environment, investment climate remains poor. The Russian economy is in need of an inclusive series of measures by the government that would cover all areas of economic life. A five-factor regression model was created in order to analyze investment climate in Russia. Economic indicators that were used for the analysis are dated from 1995 to 2015. The amount of foreign direct investment served as an explained variable. The following factors were taken as explanatory variables: refinancing rate, the share of enterprises engaged in innovation activities, the return on assets, the share of infrastructure spending in GDP and export of primary energy resources. Based on the test model, we can conclude that our multiple regression model is appropriate for predicting foreign direct investment. The presented model allows to determine the factors that need to be considered primarily while developing the government investment policy. The factors selected for our model show a multidimensional approach to the analysis of foreign direct investment, because they include the impact of financial, innovation, infrastructure and resource components of the investment attractiveness. Therefore, the article outlines current problems and suggests possible measures for their solution in order to improve the investment climate and attract foreign investments. Effective government policy at the federal and regional level will allow to achieve high results on the way to the formation of a positive investment climate.
SGEM Research areas:
Year:
2017
Type of Publication:
In Proceedings
Keywords:
investment climate; foreign direct investment; government investment policy; multifactor regression model
Volume:
17
SGEM Book title:
References: 4th International Multidisciplinary Scientific Conference on Social Sciences and Arts SGEM2017, www.sgemvienna.org, SGEM2017 Conference Proceedings, ISBN 978-619-7105-93-3 / ISSN 2367-5659, March 28-31, Book1, Vol.1, 545-556 pp, DOI:10.5593/SGE
Book number:
1.1
SGEM Series:
International Multidisciplinary Scientific Conference on Social Sciences and Arts-SGEM
Pages:
545-556
Publisher address:
51 Alexander Malinov blvd, Sofia, 1712, Bulgaria
SGEM supporters:
Bulgarian Acad Sci; Acad Sci Czech Republ; Latvian Acad Sci; Polish Acad Sci; Russian Acad Sci; Serbian Acad Sci & Arts; Slovak Acad Sci; Natl Acad Sci Ukraine; Natl Acad Sci Armenia; Sci Council Japan; World Acad Sci; European Acad Sci, Arts & Letters; Ac
Period:
4th International Multidisciplinary Scientific Conference on Social Sciences and Arts SGEM2017
ISBN:
978-619-7105-93-3
ISSN:
2367-5659
Conference:
References: 4th International Multidisciplinary Scientific Conference on Social Sciences and Arts SGEM2017, www.sgemvienna.org, SGEM2017 Conference Proceedings, ISBN 978-619-7105-93-3 / ISSN 2367-5659, March 28-31, Book1, Vol.1, 545-556 pp, DOI:10.5593/SGEMSOCIAL2017/HB11/S03.068, 4th International Multidisciplinary Scientific Conference on Social Sciences and Arts SGEM2017
DOI:
10.5593/SGEMSOCIAL2017/HB11/S03.068
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