Estimation for Optimum Investment Capacity of a Region (The Case of Amur Region)

DOI

10.2991/aebmr.k.200312.011How to use a DOI?

Abstract

The article investigates issues of the optimization of the investment capacity of a region. The study utilizes economic and statistical methods and computational and constructive research methods as well as the method of comparative analysis. The author proposes his definition of the concepts of the actual and optimal investment capacity of a region. The actual investment capacity of Amur Region is estimated for the period 2000 – 2016. The author designs an estimation model for the optimal investment capacity in a region and uses it to estimate the optimum investment capacity in Amur Region in 2000 – 2016. A characteristic feature of investment processes in Amur Region is the implementation of large-scale investment projects. In 2000–07, the local economy suffered from a shortage of investment resources that are required for maximizing the gross regional product (GRP). Between 2010 and 2013 the actual investment capacity exceeded the optimum, which means that either the capital invested in the region was not put to effective use, failing to bring about GRP growth (within the investment actual capacity excess over the optimum), or the investments in major projects will produce GRP growth in the future. The obtained results indicate that the investment capacity of Amur Region was 54.1% in 2016. In order to prevent inefficient investment spending and to maximize GRP in the region, it is necessary to reduce the actual investment capacity by 6.2 percentage points (to 47.9%). Consequently, by determining the optimum investment capacity, it will be possible to execute a more consistent and rational approach to distribution of limited public investment resources and to prevent their inefficient spending.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - S G Serikov
PY  - 2020
DA  - 2020/03/17
TI  - Estimation for Optimum Investment Capacity of a Region (The Case of Amur Region)
BT  - Proceedings of the International Scientific Conference "Far East Con" (ISCFEC 2020)
PB  - Atlantis Press
SP  - 71
EP  - 76
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200312.011
DO  - 10.2991/aebmr.k.200312.011
ID  - Serikov2020
ER  -