Where would you buy money?
Foreign direct investment is the most effective capital inflowIn 2007, $27797 million of foreign direct investment was made in Russia, which is twice as much as in 2006.
Such a study was conducted by experts of the National Institute for System Studies of Entrepreneurship Problems (NISIPP).
The purpose of this monitoring was to identify a range of indicators that reflect the qualitative trends of investment processes in the regions of the Russian Federation in the most informative form.
According to experts, the undisputed leader in attracting foreign direct investment in 2007 is the Central Federal District, more than 60% of the total volume of FDI attracted to Russia. This district traditionally attracts a significant share of foreign direct investment, mainly due to investments made in Moscow, and the growth rates here are quite high. The Far Eastern Federal District attracted only 14.6% of foreign direct investment received in Russia, which is primarily due to large-scale investments in oil and gas field development projects in the Sakhalin Region, which accounts for more than 92% of all FDI in the district.
The growth in the volume of attracted FDI was observed in all federal districts, the Ural Federal District was the leader (an increase of more than 3 times), but it ranks last in terms of volumes. The second place for the Central Federal District is almost a 3–fold increase. Extremely insignificant growth was recorded in the Far Eastern Federal District (slightly more than 1%).
The ratio of the volume of attracted foreign direct investment to the population for the Russian Federation in 2007 amounted to 195.45 dollars per person, which is more than twice as high as in 2006.
According to the research results, a positive trend was observed from year to year, the number of regions where FDI per capita grew, and the number of regions where this indicator fell decreased. A comparison of 2007 with 2006 showed that in more than half of the regions the indicator under consideration increased slightly, and in the same number of regions the indicator decreased.
The ratio of the inflow of foreign direct investment to GRP (Gross Regional Product) of the Russian Federation in 2007 was 2.51%.
The share of foreign direct investment in the total volume of attracted foreign investment is to some extent a characteristic of the efficiency of capital flowing into the region.
"Foreign direct investment is the most attractive form of capital inflow for the recipient country, as it is invested in real production assets and is associated with many positive effects for the recipient, such as additional jobs and tax revenues, infrastructure development, influx of technology and management experience," says expert Alexander Shamray. – Therefore, the indicator of the share of FDI in the total volume of attracted foreign investments is important from the point of view of the efficiency of capital attracted to the region. For the Russian Federation, this figure was 22.98% in 2007.
In 23 regions, the share of foreign direct investment accounted for more than half of all investments received from abroad. This means that in these regions a large share of foreign investment flows into real assets that contribute to positive socio-economic development.
The largest number of regions in 2007 fell into the group with positive dynamics of all monitoring indicators (24 regions). At the same time, a significant number of regions (17) showed a drop in all indicators. In general, the positive dynamics of the studied indicators took place in most regions.