Investments in fixed capital and the prospects for sustainable development of the eastern border regions of Russia

Abstract

The article is devoted to the analysis of the economic effects generated by the investments in the economy of the eastern border regions of Russia: the subjects of the Far Eastern Federal District and the Baikal region. Interregional comparisons and contrasts of the economic development indicators for 2011-2018 are given in comparable prices with 2011 as the base year. We discuss the factors hindering the accelerated growth of the economies of these regions. Particular attention is paid to the structure of investments in fixed assets, their effectiveness and impact on the specifics of the socioeconomic development in individual regions. There are multidirectional tendencies in the socioeconomic development of the studied regions. An analysis of investment flows and indicators of socioeconomic development in the eastern regions of the Russian Federation reveals that the existing institutional environment does not yet ensure sustainable economic development in the east of Russia. The integration processes here are hampered by an excessively strong dependence on the federal centre and a focus on specific investors. Therefore, the eastern Russian regions are forced to build their economic policy, focusing on creating attractive conditions for large investors. The stability of economic growth can be ensured only through stable growth of the region population and improvement of the human capital quality. For the successful implementation of large-scale development plans for the east of Russia, it is necessary to stop the processes of depopulation of the territory and maintain optimal proportions between the economic and demographic reproduction.

Утицај Капиталних Расхода У Форми Основних Средстава На Економски Раст У Републици Србији

“…The analysis of the impact of investments in fixed assets on the economic growth of Serbia for the period 2004-2021 enables a comparison with other results obtained in the international literature. The literature shows that investments in fixed assets have a positive effect on economic growth (Boeing, Eberle and Howell 2022;Gövdeli 2022;Ahmad 2021;Meyer and Sanusi 2019;Škare 2001), but not strongly enough (Faleychik and Faleychik 2021) from the aspect of statistical significance. Also, the literature suggests an inverse relationship, i.e.…”

“…Analyzed were the effects of realized investments on economic growth on a sample of two eastern border regions of Russia -the Far Eastern Federal District and the Baikal region. The analysis compared these regions in the 2011-2018 period (Faleychik and Faleychik 2021). Official data from the Federal Statistical Service (Rosstat) were used for investment indicators, and the base year for prices was 2011.…”