PUBLIC ADMINISTRATION OF THE REGION’S ECONOMY ON INVESTMENT BASIS

Abstract

The article deals with the theory of the investment climate of the regions and the investment attractiveness of the regions, when the region is considered as a fully open system, and the flow of investment depends on its attractiveness to investors. The definition of investment attractiveness of the region, the investment potential of the region and the investment climate of the region are given. The regional conditions affecting investment, the structure of the regional economy and the investment activity of the processes in the region are considered. Factors influencing the capacity and commodity structure of the market are also presented: natural resource, demographic, structural, infrastructure and settlement factors. The characteristic is given of natural resource, demographic, structural, infrastructural and settlement factors.

The key role of the state in the development of the regional economy is substantiated.

The issue of determining the investment potential of the region and the investment risk of the region has been updated. The factors of investment attractiveness are listed: considerable scale, terms of payback of investment projects, effective corporate structure. The conditions of functioning of the region as an economic system through the lens of sustainable development are considered. The basic imperatives of the resource subsystems have been clarified: territorial organization of reproduction and development of reproductive potential.

The role of analysis in the system of government decision making concerning the development of investment processes is emphasized.

Regional conditions affecting investment are identified: macroeconomic environment, distribution mechanisms and specific conditions. The structure of the regional economy is presented as a complex economic system through structural changes in the regional economy and the configuration of the corporate structure. The value of investments in fixed capital is shown as a set of expenses for creation and reproduction of fixed assets. The principles of constructing a strategy of competitive type of reproduction are identified: investments in areas where the region has advantages, investments in growth points (technological opportunities), use of investment mechanisms. To adjust the structure of regional-branch complexes.

The problem of increasing investment activity in the region or the activity of investment processes, which are conditioned by the influence of factors: expediency of updating the production apparatus, and structural restructuring and transition to sustainable growth of the real sector of economy are noted.