Content №2 от 2019
Regional Investment Standard As an Institutional Tool for Improving Russia’s Regions Investment Climate
High investment climate quality is an important factor for the economic development of regions. An investment climate is largely determined by institutions that form the conditions for doing business within the boundaries of territorial formation. Numerous studies show that institutional quality has a significant effect on indicators of investment activity, and the influence of institutions at the regional level is significant. The paper contains an empirical study of the quality of institutions that create investment climate in nine regions of Russia. The author identifies some key institutional problems preventing investment in the regions based on the series of polls and structured interviews with investors and government officials. Particular attention is paid to the analysis of the Regional Investment Standard (RIS) implementation practice, where, since 2012, a package of reforms has been introduced in all Russian regions to create favorable conditions for investment activities. The study shows that the most important result of this package of reforms is lower administrative barriers for investors. However, the RIS does not yet have any positive impact on the level of investors ’ rights protection, does not create the necessary tax incentives for investment projects, nor does it imply establishing institutions to consider regional specificities. A part of the reforms ’ implementation problems is also due to the lack of motivation among local authorities.
