Factors influencing the development of investment climate

Investment Climate Assessment is based on an analysis of factors determining the investment climate and promoting economic growth. Commonly used output parameters of the investment climate in the country (inflow and outflow of capital, inflation and interest rates, the share of savings in GDP), as well as the input parameters that determine the output values ​​that characterize the capacity to absorb investment has risk of their implementation.

Trends shaping the investment climate of a region are influenced by two groups of factors.

The first of these groups covers the common country characteristics. However, some of the components in this group of factors are fairly evenly "projected" (positively or negatively) on the investment climate in all regions of Russia. More formally general federal component of the investment climate "projected" on the investment attractiveness of Russian regions is very uneven.

The second group of factors, the investment climate at the regional level - the specific features or attributes of a particular region. Accordingly, we can say, on the one hand, the components of the investment climate in the region, which in one way or another lie in the controllability of (powers of the authorities) of the Federation, and with another - the factors that impact on who is under the authority of the federal government. In connection with this work on the formation of favorable investment climate in Russian regions, including in part to attract foreign investment, is seen only as a result of close cooperation between the Federation and its subjects, interaction based on a balance of interests and clear delineation of respective terms of managerial authority.

It is obvious that the terms of the constituent elements (factors) the investment climate at the federal and regional levels can be repeated, but the significance of these terms will vary considerably. So, in terms of the legislative components of precedence is a federal regulation level: here the "weight" of this component is much higher, because the significance of legislative regulation of the investment process at the regional level in order below. Much the same can be said about tax issues: today the possibility of regions to attract investors tax benefits are very limited, as a rule, allowed a discount on income tax exemptions and property tax entities.

At the federal level also laid foundation of the Russian stock market. His condition is also an important criterion for evaluating the investment climate in the common country and regional level. Macroeconomic processes and rulemaking at the state level as a preferred form, and such components of the investment climate, as the volume and structure of the domestic consumer market, determined by effective demand, the inflation rate, the reliability of the banking system, protection of property rights.

At the regional level the most significant components of the investment climate such as the presence of certain types of natural resources, transportation access areas for various forms of economic development, the effectiveness of regulation of land relations, the effective interaction of government of the Federation and local self-government de-bureaucratization of regional and local administrative apparatus and so on. Essential for the formation of favorable investment climate has also general development of basic market institutions and entrepreneurship, particularly among small has medium-sized businesses. Significance at the regional level has the ability of the local business elite has supporting it governance structures to develop and promote high-quality investment projects, provide investors with ready building sites. The positive response of potential investors is always a willingness to regional and local governments under certain conditions to effectively take over responsibility for solving social problems associated with the establishment and operation of new plants, etc.

Experts from the Institute of German Economy in 1997, gave an interesting assessment of factors affecting the investment climate in Russia on a four-system (Table 1) These figures are still valid today.

Table 1 - Factors adversely affecting the investment climate in Russia

Factors	Points
Instability of the legislative framework	3,12
Excessive taxation	2,92
Crime and corruption	2,82
High inflation	2,77
Lack of purchasing power	2,74
High customs duties	2,69
Bureaucracy has incompetence of local authorities	2,65
Non-payment of business partners	2,65
Lack of insurance guarantees of the state	2,31
Poor infrastructure	2,28
Limited services of local banks	2,27
Lack of reliable partners	1,99
Lack of market information	1,84
Staffing issues	1,79
Monopolization of markets for goods has services	1,46
Lack of capacity	1,19

Risk assessment for western investors top managers working in Russia, is given in Table 2

Table 2 - Risk Assessment in Russia

Risk factors	Points
The arbitrariness of the bureaucracy and the corruption	4,3
Unethical competition, the use of backdoors in the laws, the use of links with government officials, black PR	3,8
The risk of loss of property, the possibility of losing their assets in a formal legal basis	3,7
Managers ignore the rights of investors	2,8
Nontransparent Finance	2,5
The risk of changing legislation	1,8
Ineffective management, outdated management practices, lack of knowledge	1,8

Estimating investment attractiveness, it is necessary to take into account the obvious fact of certain contradictions that characterize how the system itself, factors and indicators of investment climate in the region, and this system in relation to other goals and priorities of socio-economic development. Thus, investors are known to be particularly attracted by low wages (a factor of increasing competitiveness), but low wages - is both a low growth in living standards and purchasing power, as well as the potential source of social tension, which has a negative for investors, particularly suggesting to sell their products in the region.

Thus, the development of investment climate is influenced by various factors: climatic conditions, environment, geography, scientific potential, economic conditions, legislative and regulatory framework, building base, a risk factor, human resources, social infrastructure. Estimating investment attractiveness, it is necessary to take into account the obvious fact of certain contradictions that characterize how the system itself, factors and indicators of investment climate in the region, and this system in relation to other goals and priorities of socio-economic development.

Дата добавления: 2015-11-14