Page 23 - Theoretical and Practical Interpretation of Investment Attractiveness

incomes of the population employed in the economy, an increase in the profits of enterprises
and funds flowing into the state budget. Increased income, in turn, leads to increased demand
for goods and services. Economists, in their studies using econometric analysis, have proven
that the wealth created in the regions is directly related to the growth of the country's
economy.
An increase in national income at a rate exceeding natural population growth naturally
leads to an increase in per capita income. In particular, the conditions created for small
businesses and private entrepreneurship in our country, economic policies pursued on the
basis of the principle of fairness, as well as the timely and correct implementation of regional
investment programs lead to an increase in new jobs in our country. economy and, as a
consequence, socio-economic development.
That is why the government’s economic policy, aimed at ensuring the socio-
economic development of the regions, is based on the main goal - ensuring the economic
development of the country and increasing the well-being of the population .
Due to the limited economic resources (territorial wealth) available in the regions, the
most effective way to increase production capacity is the optimal use of these resources and
the mobilization of additional capital resources based on high technologies. To do this, it is
important to conduct an analysis related to improving the investment environment in the
country/regions and further increasing its attractiveness.
Economist O.A.Biyakov, taking a constructive approach to the research carried out in
this area, tried to reveal the essence of the issue from a scientific-theoretical and scientific-
methodological point of view. According to his research and conclusions, factors of
production in the post-industrial type of development of society lose their spatial significance
and become less connected to each other territorially, while economic space begins to perform
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an integrated function. This is the fifth independent element of production after the fourth
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element of the factor of production mentioned by J.Schumpeter .
O.A.Biyakov’s concept of “spatial potential” was developed by a number of scientists:
O.L.Tarana, E.N.Ackerman, A.A.Mikhalchuk and A.Yu.Trifonov and outlined their
theoretical views. In their opinion, as the economic meaning of spatial potential, it is
emphasized that the region should be analyzed in the form of a quasi-state and a quasi-firm,
relying on the traditional sciences of economics, that is, macroeconomic and microeconomic
algorithms.
In our opinion, it is appropriate to analyze the potential as a geo-economic entity that
ensures expanded reproduction of the regional economy (Fig. 1.2.1) and increases the
competitiveness of the region based on the international division of labor.
From Figure 1.2.1 it is clear that regional market infrastructures actively participate in
the phases of reproduction, and the economic relations they implement create a circular
circulation mechanism. Here: production infrastructure at the production stage;
environmental infrastructure at all stages; business infrastructure at the stages of distribution

13 Schumpeter J.A. History of economic analysis. St. Petersburg: Economic School, 2004.
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Biyakov O.A. Regional economic space: measuring the potential of use: Author's abstract. dis.dr.econ. science
Kemerovo, 2005. – 42 p.
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