An Approach to Modeling the Investment Attractiveness of the Industry in the Regional Aspect

At present, attracting investments in Russia's strategically important sectors remains a critical issue in the development of the domestic economy. Under the current sanctions pressure against the Russian Federation, the development of manufacturing industries is becoming the leading task in ensuring nationwide economic growth. The aim of the study is to develop a methodology for calculating the aggregated factor coefficient of investment attractiveness for a complex of manufacturing industries in the regions, based on econometric modeling. The investment attractiveness of a complex of manufacturing industries is understood as a set of significant factors that determine the inflow of investments into a complex of manufacturing industries. As a result of the study, we revealed that at the moment there is no unified generally accepted methodology for assessing the investment attractiveness of manufacturing industries; factors determining their investment attractiveness are not systematized; there are no studies devoted to identifying statistically significant factors for this type of economic activity. In this regard, a model was developed for selecting significant factors promoting investment attractiveness of a complex of manufacturing industries in Russia's regions. According to the methodology, the final aggregated factor coefficient is formed on the basis of private indicators that were combined into groups of factors, which allows us to identify the most important factors affecting the investment attractiveness of the manufacturing industry in a particular region and identify strategies to improve their investment attractiveness. The analysis of the aggregated factor coefficient will help potential investors to determine in which regions the complex of manufacturing industries is most promising for investment, as well as what measures need to be taken to improve the investment attractiveness of the complex of manufacturing industries in regions with a low coefficient value. The evaluation results showed that the most significant factors are production, labor, and innovation factors promoting investment attractiveness of the manufacturing industry. Our approach and the results we obtained can be used by public and private investors to make a decision on the expediency of investments in the industry and by authorities when forming investment policy, taking into account regional industry specifics.