Page 101 - Theoretical and Practical Interpretation of Investment Attractiveness

In this case, if the increase of the calculated index leads to a positive change in the
development potential of the area, formula 3.5 is used, and if it is the opposite, formula 3.6 is
used.
When calculating the rating of the final socio-economic potential of the region, the
following expression is used:

, (3.7)

Here – the final assessment of the development of the socio-economic potential
of the area (rating assessment);
n – comparative amount of socio-economic indicators.
The advantage of this methodological apparatus is that it is possible to determine the
contribution of each region to the gross national potential.
It is appropriate to note the researches carried out on the methodology of assessing the
economic potential of the regions, that is, the researches carried out by A.N.Syrov 131 in the
third group. In the studies belonging to this group, the attention is mainly focused on the
assessment of the value of the resources and the level of their use, reflecting the existing
potential of the area. The evaluation indicator is explained by the integral formula:

, (3.8)

here, – j the function of determining the integral value of the area
potential;

m – the amount of resources describing the potential of the area;

– j t resource potential value for the area.

The value of the separate resource potential of the area is calculated within the
framework of the following methodological formula (3.9):

, (3.9)

here, – the amount of indicators used to calculate the value of the resource;
– j indicator of the potential of the area.

131 Syrov A.N. Assessment of the economic potential of the territory. Regional economics / A.N. Syrov // Bulletin of
Volgograd State University. 2008. No. 2 (13). pp. 98-102.
98