Investment Environment Assessment and Strategic Policy for Subjects of Federation in Russia

Abstract

Russia is the largest neighboring country of China. Between the two countries, the resources and industry are complemented, the political mutual trust is at a high level, and trade cooperation has a broad prospect. Choosing the best regions and the best industries to strengthen investment in Russia has a major strategic significance in promoting 'the Belt and Road Initiative' and China-Mongolia-Russia Economic Corridor Construction. However, the related researches are extremely limited. The investment environment is unclear, and the investment risk is unknown, which seriously restrict the investment in Russia and the trade cooperation with Russia. Our research team carried out scientific expedition, government visits and scientific research cooperation in Russia for several years, and obtained a great number of first-hand valuable data. According to the analysis on the data and Russian regional policies, this study constructed an investment environment evaluation model (ESI-PRA model), scientific assessed the investment environment for 83 subjects of federation in Russia, in terms of economic, social, infrastructure, policy, resource and accessibility, classified 4 types of investment regions, chose 3 investment priority regions, revealed the investment priority industries, demonstrated the main investment risks, and proposed the strategic policies. The research results provide direct scientific and technological support for strategic decisions, such as investment in Russia, bilateral economic and trade cooperation, and overseas layout of Chinese-funded enterprises. Moreover, it has an important practical and strategic significance for improving overseas geo-strategic interests of China and ensuring the construction of China-Mongolia-Russia Economic Corridor.

Evaluation of agricultural investment environment in countries around the Black Sea under the background of The Belt and Road

“…In addition, the method of environmental evaluation is applied in agriculture and other fields, but there are less evaluations done specific to the regional agricultural investment topic. The maximum entropy and the entropy‐based TOPSIS method were used to analyse the distribution and management of agricultural water resources (Li, F. et al, 2019; Li, M., Sun, Singh, Zhou, & Ma, 2019; Li, M,. Wang, & Chen, 2019).…”

“…A practical method was put forward to evaluate the investment environment from the perspective of the host country, and the foreign investment environment in China was analysed from the aspects of natural resources, geographical conditions, and political and economic systems (Deng, Li, & Chen, 1997). An ESI‐PRA model was established from economy, society, infrastructure, and policy to assess the strategic significance of China's investment in Russia under the construction of the Belt and Road Initiative and China‐Mongolia‐Russia Economic Corridor (Li, Liu, et al, 2019; Li, Sun, et al, 2019; Li, Wang, & Chen, 2019). Auregan (2017) studied China's investment in Ivorian agriculture, pointing out that to some extent this behaviour contributed to the financialization of the agricultural sector and to the rise to power of the now globalized “China Corp”.…”

Construction of the Primorsky No. 1 and No. 2 International Transport Corridors: Risk Evaluation and Mitigation Policies

“…Since there are non-spatial quantitative data for policies, by referring to the research conducted by Li, et al in 2019 [43], we analyzed ten regional development policies, plans, and special transport construction policies and plans that are closely related to the research area, issued by Russian governments at all levels, as well as those co-issued by China and Russia. If a research region is included in a policy or plan, one point is added to its policy score, as shown in Formulae (2) and 3, where denotes the policy score of research region i.…”

“…The greater the degree of data dispersion, the smaller the information entropy, the greater the impact of the index on the comprehensive evaluation, and the greater the weight will be. The method of entropy can overcome the problems of randomness and conjecture that cannot be avoided by subjective methods and can effectively solve the problem of information overlapping among multiple indices, which is widely used in comprehensive evaluation systems [53,54], especially in systems that contain a large number of indices [43,55,56]. Therefore, to objectively and scientifically evaluate risk degree from the construction of the Primorsky No.…”

Spatial-temporal Evolution and Determinants of the Belt and Road Initiative: A Maximum Entropy Gravity Model Approach

“…Existing literature has studied the investment environment (Li et al, 2019a), scientific collaboration network (Gui et al, 2019), trade efficiency (Fan et al, 2016), traffic patterns (Wang et al, 2015), flow distribution (Sheu and Kundu, 2018), agricultural development (Li et al, 2018;Liu et al, 2019), environmental degradation (Hafeez et al, 2018), nomadic ecology (Frachetti et al, 2017;Hermes et al, 2018), and resource cooperation (Dong et al, 2015;Yu et al, 2015) within the framework of BRI. By constructing the integration index, the existing literature analyses the impact of cultural integration, tariff reduction and trade facilitation on inter-regional trade relations (Wang, 2017;Chung, 2018).…”