Received:
2019-03-16 | Accepted:
2019-10-06 | Published:
2019-12-15
Title
Investment appeal of a region and its impact on investment inflows
Abstract
The study is aimed at assessing the impact of several indicators of investment appeal, namely, domestic research and development expenditure and the rate of employment, on the inflow of investment to a region. The Russian regions’ data were used to run factorial analysis of variance of investment in fixed assets against the variance of R&D expenditure and rate of employment: factors’ influence was estimated significant with a greater impact from domestic R&D expenditure on the capital expenditure. The study proves that investors, when making decisions about investing their funds, pay attention primarily to the extent of intellectual potential development in a region, rather than to labor availability. Consequently, the strong influence of this factor on the inflow of investment makes it possible to conclude that regions that have reached the greatest level of intellectual potential development have every reason to be the most attractive for investors.
Keywords
investment, investment appeal, innovation, scientific and technological development, region, regional development
JEL classifications
E22
, G31
, O11
, R58
URI
http://jssidoi.org/jesi/article/424
DOI
Pages
1089-1097
This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License
References
Baltgailis, J. 2019. The issues of increasing the effectiveness of teaching comparative economics. Insights into Regional Development, 1(3), 190-199. https://doi.org/10.9770/ird.2019.1.3(1)
Search via ReFindit
Barca, F., Mccann, P., & Rodríguez-Pose, A. (2012). The case for regional development intervention: Place-based versus place-neutral approaches. Journal of Regional Science, 52(1): 134-152. https://doi.org/10.1111/j.1467-9787.2011.00756.x
Search via ReFindit
Doussard, M., Schrock, G., Lester, T.W. 2017. Did US regions with manufacturing design generate more production jobs in the 2000s? New evidence on innovation and regional development. Urban Studies, 54(13): 3119-3137.
Search via ReFindit
Galanina, T. V., Mikhailov, V. G., Golofastova, N. N., Koroleva, T. G. (2017). Investment Appeal of the Recreational Potential of the Region. IOP Conference Series: Earth and Environmental Science, 50(1), 012037. https://doi.org/10.1088/1755-1315/50/1/012037
Search via ReFindit
Gordon, I. R. & McCann, P. 2005. Innovation, agglomeration, and regional development. Journal of Economic Geography, 5(5): 523-543.
Search via ReFindit
Hansen, T. & Winther, L. 2011. Innovation, regional development and relations between high- and low-tech industries. European Urban and Regional Studies, 18(3): 321-339.
Search via ReFindit
Mas-Verdu, F., Soriano, D.R., Dobon, S.R. 2010. Regional development and innovation: The role of services. Service Industries Journal, 30(5), 633-641.
Search via ReFindit
Nikiforov, S.A., Larina, O.G., Yatsenko, K.V., Galiullin, R.R., Gabdulkhakov, R.B., Yavkin, G.P. 2018. Cultural revolution of Stalinism in its regional context. International Journal of Mechanical Engineering and Technology, 9(11): 1229-1241.
Search via ReFindit
Ohotina, A., Lavrinenko, O., Ignatjeva, S., Lonska, J. (2018). Socio-economic security as a determinant of regional differences in the investment climate in the region. Journal of Security and Sustainability Issues, 7(3), 427-438.
Search via ReFindit
Prodani, R., Bushati, J., Andersons, A. 2019. An assessment of impact of information and communication technology in enterprızes of Korça region. Insights into Regional Development, 1(4), 333-342. https://doi.org/10.9770/ird.2019.1.4(4)
Search via ReFindit
Putri, N. L. I. & Sudaryanto. (2018). Indonesia tourism in attracting foreign investors: The role of FDI. International Journal of Scientific and Technology Research, 7(4): 217-220.
Search via ReFindit
Samygin, D., Nikolaj, B., Natal'Ja, S. (2017). Models of investment appeal of agribusiness in Russian regions. Ponte, 73(2), 344-351.
Search via ReFindit
Sánchez-Carreira, M.D.C., Peñate-Valentín, M.C., Varela-Vázquez, P. 2018. Public procurement of innovation and regional development in peripheral areas. Innovation, In press.
Search via ReFindit
Scott, A. J., & Storper, M. (2003). Regions, globalization, development. Regional Studies, 37(6-7): 579-593. https://doi.org/10.1080/0034340032000108697a
Search via ReFindit
Selivanova-Fyodorova, N., Komarova, V., Lonska, J, Mietule, I. (2019). Differentiation of internal regions in the EU countries. Insights into Regional Development, 1(4), 370-384. https://doi.org/10.9770/ird.2019.1.4(7)
Search via ReFindit
Simmie, J. & Martin, R. (2010). The economic resilience of regions: Towards an evolutionary approach. Cambridge Journal of Regions, Economy and Society, 3(1): 27-43.
Search via ReFindit
Takhumova, O. V., Kasatkina, E. V., Maslihova, E. A., Yumashev, A. V., & Yumasheva, M. V. (2018). The main directions of increasing the investment attractiveness of the Russian regions in the conditions of institutional transformations. Espacios, 39(37)
Search via ReFindit
Tvaronavičienė, M. (2019). Insights into global trends of capital flows’ peculiarities: emerging leadership of China. Administratie si Management Public, (32), https://doi.org/10.24818/amp/2019.32-01
Search via ReFindit
Yeung, H. W. (2005). Rethinking relational economic geography. Transactions of the Institute of British Geographers, 30(1): 37-51. https://doi.org/10.1111/j.1475-5661.2005.00150.x
Search via ReFindit