Investment openness of the Russian regions: Transformations over time and influence of the border location

Abstract

Introduction. Today, Russia faces a number of challenges and restrictions that might affect foreign economic activity, including attracting foreign investments. However, this influence is not equal over various Russian territories.

Purpose. The paper aims at assessing the investment openness of the Russian regions, identifying spatial trends in investment activities, and determining the impact of the border factor.

Materials and Methods. Investment openness was defined with mathematical tools and statistical data from 2011, 2015, and 2021; hierarchical cluster analysis was used for typology; the results of calculations and typology were visualized in map diagrams.

Results. The study identified groups of regions by their investment openness (outsiders, averagers and leaders); the parameter’s dynamic trends driven by the border factor were determined for the territories of Russia over the period of study.

Conclusions. The border factor has no predominant decisive influence on investment openness of the economies in the Russian regions. However, some regions showed the dependence on the border factors, which could mainly be explained by their geopolitical situation. Considering the importance of investment attractiveness for economic and technological development, there is a need for its scientifically based monitoring. The methodological approach presented in the work can be used to assess the spatial and time changes in investment openness of the economies of the Russian regions, including with regard to the border factor.

Keywords: region, border region, economic space, investment openness, transformation of regional economic systems, typology, cluster analysis

Funding

The study was funded as a public task of Karelian Research Centre of the Russian Academy of Sciences “Comprehensive study and elaboration of management principles for sustainable development of Russia’s northern and borderland belts in the context of global challenges”.

For citation

Vasilieva A. V., Moroshkina M. V. Investment openness of the Russian regions: Transformations over time and influence of the border location. Perm University Herald. Economy, 2024, vol. 19, no. 4, pp. 377–394. DOI 10.17072/1994-9960-2024-4-377-394. EDN AGYRJP.

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