Institutional environment creating for attracting investment into infrastructure: The cases of Russian regions

The article examines the institutional process in a regional economy connected with the infrastructure development. We use the neoinstitutional approach to study factors that influence the behavior of government and business in their interaction in the economy. We also use statistical methods to analyze the dynamics of socio-economic development indicators of the subjects of the Russian Federation as well as the results of measures to attract private investment into infrastructure, including the PPP. We chose the city of Moscow and the Yamalo-Nenets Autonomous District as two empirical case studies which differ in economic and geographic conditions, but both demonstrate success in attracting private investment and implementing infrastructure projects. Our conclusions are consistent with a theory that asserts the primacy of institutional environment in relation to project implementation. We make also some practical recommendations for the development of the institutional environment which are acceptable for all regions solving similar problems of infrastructure development.