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Regional Economics: Theory and Practice
 

Investment activity of the industry of the northern regions of the Russian Federation

Vol. 12, Iss. 40, OCTOBER 2014

Available online: 25 October 2014

Subject Heading: INNOVATION AND INVESTMENT

JEL Classification: 

Pages: 10-22

Styrov M.M. Institute of Socio-Economic and Energy Problems of North, Komi Scientific Center, Ural Branch of RAS, Syktyvkar, Komi Republic, Russian Federation
styrovmm@mail.ru

Kolechkov D.V. Institute of Socio-Economic and Energy Problems of North, Komi Scientific Center, Ural Branch of RAS, Syktyvkar, Komi Republic, Russian Federation
kdb1970@mail.ru

Importance Industry plays a key role in the socio-economic development of the North, which, in turn, is gaining the increasing importance in economic and geopolitical interests of Russia. The article is devoted to the assessment of the investment activity, as well as the industrial and spatial structure of investments in fixed capital of the Northern Russian regions' industry.
     Objectives The aim of the study is to assess the investment activity of the industry of the Northern regions of Russia in sectoral and territorial aspect.
     Methods The analysis was performed using the calculation of absolute and relative indicators, matching them in dynamics, comparisons between regions among themselves and with the average Russian values of tabular and graphic data presentation.
     Results The industry of Northern Russia is characterized by high investment in absolute terms and in comparing the investment with the added cost. But because of the high capital intensity, the updating coefficient in the region does not exceed the average level in Russia. The study shows a large branch and territorial disparity of investment caused by the disproportionately rapid development of the oil and gas industries and individual projects in the energy sector with a strong backlog of manufacturing industries. The study found that for 2005-2012, there was a substantial increase in investment in fixed assets of industrial enterprises in the Northern region and in the whole country. The paper identifies key space-industry investment in growth of industries of the North during this period.
     Application The results of the study can be used in analytical and administrative work of the regional and federal authorities.
     Conclusions and Relevance The authors conclude that the current spatial and branch structure of real investment does not fully meet the objectives of the transition of the industry of the North of Russia on a steady path of diversified development.

Keywords: investment, fixed capital, industry, north, region, mining industry, processing industry, energy sector

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