Received: 2019-03-16  |  Accepted: 2019-10-06  |  Published: 2019-12-15


Investment appeal of a region and its impact on investment inflows


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.


investment, investment appeal, innovation, scientific and technological development, region, regional development

JEL classifications

E22 , G31 , O11 , R58






This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License


Polyakova, Aleksandra Grigorievna
Tyumen Industrial University, Tyumen, Russian Federation
Plekhanov Russian University of Economics, Moscow, Russian Federation
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Akhmetshin, Elvir Munirovich
Kazan Federal University, Kazan, Russian Federation
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Pavlyuk, Albert Valentinovich
Moscow State Institute of International Relations, Moscow, Russian Federation
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Meshkova, Galina Vladimirovna
Bauman Moscow State Technical University, Moscow, Russian Federation
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Journal title

Entrepreneurship and Sustainability Issues





Issue date

December 2019

Issue DOI


ISSN 2345-0282 (online)


VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania


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