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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