• P-ISSN 0974-6846 E-ISSN 0974-5645

Indian Journal of Science and Technology

Article

Indian Journal of Science and Technology

Year: 2016, Volume: 9, Issue: 12, Pages: 1-9

Original Article

Structural Approach to Evaluating Investments into the Region Economy

Abstract

Background: The attraction of investment resources into the economy is a priority, since further economic development depends on the required amount of investments. Research related studies of the dynamics of investments and shifts taking place in the structure of investments are becoming particularly relevant. The aim of this study is to analyze and evaluate the shifts in the structure of investments using the developed methodology. Methods: The article provides the comparative analysis of different approaches to the definition of ‘structural shifts’ and methods for evaluating them. The analysis revealed the need to develop a comprehensive methodology for evaluating shifts in the structure of an economic entity. The article considers the methodology of studying structural changes and dynamics of investment flows. The authors have elaborated the methodology that allows for carrying out a comprehensive assessment of the status and dynamics of the economic object structure. Findings: With the help of the suggested methodology, the authors have carried out structural-dynamic analysis of the investment in the economy of the Far Eastern Federal Okrug, which revealed the presence of significant imbalances in the investment structure. The region is mainly focused on the extraction and export of raw materials, rather than processing them, which significantly reduces the rate of economic growth in the region. Investors do not invest in long-term projects for the region’s economy development. Short-term investments are aimed at fast and risk-free return on investment. Improvements: The article formulates the problem of attracting investments into the region’s economy and proposes measures that would improve the investment climate and investment efficiency. The methodology of investment structure analysis can serve as a basis for further theoretical and applied research in the field of regional investment policy.

Keywords: Integrated Coefficient, Intensity of Structural Shifts, Investments, Proportion Change, Structural Shifts 

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