The Impact of Investment Processes on the Development of Border Regions

Abstract

Mikhail Vasilievich Bilchak - E-mail: michal.bilczak@uwm.edu.pl

The article discusses the conditions of attracting investments and the development of investment processes in the border regions. The economic nature of the „investment”, as well as the theoretical concepts and schools, that have a direct impact on the development of investment processes and attracting foreign direct investment were presented. Also, such issues like: developed investment potential and a combination of logistical, financial and intangible assets, that have a large impact on the business activities and determine investment climate in border regions were discussed.

The paper presents some positive examples of  attracting foreign capital into the economy of the border regions. Of particular interest are the techniques and tools of evaluation of investment activities on both sides of the border. They relate to the territorial, technological, reproductive and sectoral structure. On the example of the reproductive and sectoral structure, the specific demand calculations for capital investments of the important sectors of the border region were presented. The assessment and calculations of investments allocated for the renewal of fixed assets, the emergence of new industries were carried out. Special attention was paid to the creation of financial reserves, the completed construction and the reproduction of fixed assets.

On a specific example, taking into account all components of investment potential of the border region, the needs of construction industries and in capital investment in various branches of production were demonstrated. This method uses weighting factors, that are determined for each industry and that form the matrix of weighting factors, the assessment of meeting regional customer demand, the infrastructure protection, the degree of securing the region in energy and the assessment of labor resources and innovation.

On the example of developing investment processes in the exclave region of Russia, bordering countries of Poland and Lithuania, different systems of supporting investment projects, investment programs and their impact on strengthening cross-border cooperation of neighboring regions and territories were demonstrated. In this respect, Poland's investment support is provided through repayable financial assistance and is directed to the acquisition of equipment, to the innovative and research actions, that allow creating new technologies, know-how, new goods and new services.