Investments in fixed capital and the prospects for sustainable development of the eastern border regions of Russia

Abstract

The article is devoted to the analysis of the economic effects generated by the investments in the economy of the eastern border regions of Russia: the subjects of the Far Eastern Federal District and the Baikal region. Interregional comparisons and contrasts of the economic development indicators for 2011-2018 are given in comparable prices with 2011 as the base year. We discuss the factors hindering the accelerated growth of the economies of these regions. Particular attention is paid to the structure of investments in fixed assets, their effectiveness and impact on the specifics of the socioeconomic development in individual regions. There are multidirectional tendencies in the socioeconomic development of the studied regions. An analysis of investment flows and indicators of socioeconomic development in the eastern regions of the Russian Federation reveals that the existing institutional environment does not yet ensure sustainable economic development in the east of Russia. The integration processes here are hampered by an excessively strong dependence on the federal centre and a focus on specific investors. Therefore, the eastern Russian regions are forced to build their economic policy, focusing on creating attractive conditions for large investors. The stability of economic growth can be ensured only through stable growth of the region population and improvement of the human capital quality. For the successful implementation of large-scale development plans for the east of Russia, it is necessary to stop the processes of depopulation of the territory and maintain optimal proportions between the economic and demographic reproduction.