Evaluation of Investment Attractiveness of the Regions of the North-West Federal District of Russia

It is strategically important for Russia to attract investments in the oil sector of the economy. The reason is that for many years the Russian economy has been working mainly on the export of products of extractive industries. The socio-economic situation of raw material regions is very different from that of regions not rich in natural resources. In this context, the development of a new economic policy based on the assessment of «soft» and «hard» factors will reduce Russia's dependence on natural resources exports and reveal the potential of regions with poor natural resources, which determines the relevance of this study. The main purpose of the final qualifying work is to assess the effectiveness of regional state policy in Russia to improve the investment environment and attract foreign investors by assessing the «soft» and «hard» factors of influence on the attractiveness of the territory. The author has formulated a detailed definition of investment attractiveness of the territory, conducted a comprehensive analysis of the current level of investment attractiveness of the subjects of the North-West Federal district, calculated integral indicators for each factor, and the total integrated indices for «soft» and «hard» factors of influence, compiled ratings of subjects for «soft» and «hard» factors of influence, built a regression model that determines the degree of dependence of «soft» factors on «hard», the analysis of the regulatory and institutional framework of each region. The study provides a starting point for recommendations to the regions in improving their investment attractiveness. By applying this analysis to a specific region, regional authorities can identify their weaknesses, and this will certainly help them to improve their investment attractiveness because they will know exactly where to direct their efforts and finances. For investors, this analysis can be a determining factor in deciding whether to invest in a particular region.