Tag: balanced scorecard

BALANCED SCORECARD AS A TOOL FOR EVALUATING THE INVESTMENT ATTRACTIVENESS OF REGIONS COMPRISING THE ARCTIC ZONE OF THE RUSSIAN FEDERATION

Vladimir MYAKSHIN

Professor,Northern (Arctic) Federal University,Russia,Arkhangelsk,Naberezhnaya Severnnoy Dviny17

mcshin@yandex.ru

Vladimir PETROV

Professor, St. Petersburg State Forestry University, Russia, St. Petersburg, Institutsky pereulok 5

wladimirpetrov@mail.ru

Abstract

Prerequisite to sound investment decision-making is the availability of reliable, objective information on earlier investments and which economic sectors they have benefitted, as well as methods allowing for multi-faceted analysis of investment performance. This study aims to elaborate a balanced scorecard to reflect the performance of and the trends in the investment activity ongoing in the regions that comprise the Arctic Zone of the Russian Federation. Methodologically, the study relies on a systemic, balanced approach; balanced scorecard concept; and foreign and domestic practices of estimating regional investment attractiveness. The study is novel in that it has achieved a customized balanced scorecard that allows for analyzing the RF Arctic regions’ investment attractiveness from various perspectives, while also allowing to identify these regions’ major investment-related challenges and promising investment opportunities. Further, the study contributes to the scientific soundness of strategies that seek better investment image. Among key outcomes of this study is the economic model that uses the said balanced scorecard to measure the RF Arctic regions’ investment attractiveness with regard to investment stakeholders (public authorities, investors, population). The outcomes of this study are expected to be used as guidance by the public authorities in the RF Arctic regions when shaping local investment policies. The prospects of this study lie in further improvement of the contents and the structure of the balanced scorecard as the Russian economy progresses in its development and, hence, improved models will be required for measuring its regions’ investment appeal.

Keywords: The Arctic Zone of the Russian Federation, investment activity, investment risks, investment climate, investment policy, investment attractiveness, important investment aspects, estimation of investment attractiveness, balanced scorecard, regional economic system.

JEL classification: D29, L50, L52, L90

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EVALUATING THE INVESTMENT ATTRACTIVENESS OF A REGION BASED ON THE BALANCED SCORECARD APPROACH

Vladimir MYAKSHIN

Associate professor, Nothern (Arctic) Federal University, Russia, Arkhangelsk, Naberezhnaya Severnoy Dviny 17

mcshin@yandex.ru

Vladimir PETROV

Professor, St. Petersburg State Forestry University, Russia, St. Petersburg,

Institutsky pereulok 5

wladimirpetrov@mail.ru

Abstract

This article discusses how the investment attractiveness of a region’s economic system (case study of Arkhangelsk Region) can be evaluated usingА the balanced scorecard developed and disclosed herein by the authors. It seeks to provide a rationale for the relevance and applicability of the balanced scorecard as a tool for identifying local investment-related challenges. The article further explains the importance of developing a sound mechanism for aligning the interests of the key stakeholders of investment process (private investors, local community, and public bodies). This mechanism should employ a balanced estimate of a region’s investment attractiveness which, in its turn, should rely on the target user groups’ informational needs. Having analyzed the basic methodologies being used by the investigators of the region’s investment attractiveness, we became convinced that the issue needs a more balanced representation and have therefore developed the balanced scorecard, accompanied by the user guide which is intended for the governmental authorities in charge of the measures to enhance the investment attractiveness locally. The analysis of the balanced scorecard has shown that it proves a useful tool for evaluating a region’s investment attractiveness and identifying its investment-related challenges and growth opportunities. In performing our study, we were governed by the current theories of institutional economics, region’s economy, and the theory of investment, the latter viewing the investment attractiveness through the prism of investment efforts. The results and conclusions of this study may serve as the basis for elaborating the region-level investment promotion strategies.

Keywords: investment potential, investment risks, investment climate, investment policy, investment attractiveness, investment efforts, core drivers, region’s economic system, balanced scorecard, balanced estimate

JEL classification: D92, L50, L52, L90
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