A Transformation of the Approach to Evaluating a Region’s Investment Attractiveness as a Consequence of the COVID-19 Pandemic
Open Access
- 15 April 2021
- Vol. 9 (2), 59
- https://doi.org/10.3390/economies9020059
Abstract
The global COVID-19 pandemic has caused a transformation of virtually all aspects of the world order today. Due to the introduction of the world quarantine, a considerable share of professional communications has been transformed into a format of distance interaction. As a result, the specific weight of traditional components of the investment attractiveness of a region is steadily going down, because modern business can be built without the need for territorial unity. It should be stated that now the criteria according to which investors decide if they are ready to invest in a region are dynamically transforming. The significance of the following characteristics is increasingly growing: the sustainable development of a region, qualities of the social environment, and consistency of the social infrastructure. Thus, the approaches to evaluating the region’s investment attractiveness must be transformed. Moreover, the investment process at the federal level involves the determination of target areas of regional development. Despite the universal significance of innovative development, the region can develop much more dynamically when a complex external environment is formed that complements its development model. Interregional interaction, as well as an integrated approach to innovative development, taking into account not only the momentary effect, but also the qualitative long-term transformation of the region, will significantly increase the return on investment. At the same time, the currently existing methods for assessing the investment attractiveness of the region are usually heuristic in nature and are not universal. The heuristic nature of the existing methods does not allow to completely abstract from the subjectivity of the researcher. Moreover, the existing methods do not take into account the cyclical properties of the innovative development of the region, which lead to the formation of a long-term effect from the transformation of the regional environment. This study is aimed at forming a comprehensive methodology that can be used to evaluate the investment attractiveness of a certain region and conclude about the lines of business that should be developed in it as well as to find ways to increase the region’s investment attractiveness. According to the results of the study, a comprehensive methodology was formed to evaluate the region’s investment attractiveness. It consists of three key indicators, namely, the level of the region’s investment attractiveness, the projected level of the region’s investment attractiveness, and the development vector of the region’s investment attractiveness. This methodology is based on a set of indicators that consider the status of the economic and social environment of the region, as well as the status of the innovative and ecological environment. The methodology can be used to make multi-dimensional conclusions both about the growth areas responsible for increasing the region’s innovative attractiveness and the lines of business that should be developed in the region.Keywords
This publication has 18 references indexed in Scilit:
- Regional Unemployment and Regional Labor MarketsPublished by Wiley ,2017
- Regional Clustering - a mechanism to increase the investment attractiveness of the regionClusters. Research and Development, 2015
- City Attractiveness for Investment: Characteristics and Underlying FactorsProcedia - Social and Behavioral Sciences, 2015
- Correlation of Balanced Socio-Economic Development of the City and Its Attractiveness (in the Case of Russian Cities with Population over a Million Citizens)Mediterranean Journal of Social Sciences, 2015
- Competitive Advantage of Nations and Regional ClustersPublished by Springer Science and Business Media LLC ,2015
- Factors Influencing the Choice of the Foreign Direct Investments Locations in the Romanian RegionsProcedia - Social and Behavioral Sciences, 2014
- Beyond natural resources: horizontal and vertical FDI diversification in Sub-Saharan AfricaApplied Economics, 2013
- The Specifics of Measurement the Urban Competitiveness at the National and International LevelEngineering Economics, 2012
- Ownership, investment climate and firm performanceEconomics of Transition, 2006
- A Model of Regional Export ActivityGrowth and Change, 1974