The Impact of Regional Instruments to Attract Investments in Timber Industry Complex

Abstract 

The development of timber industry complex has always been a major priority for the Russian government. The system of regulatory legal acts has been adopted in the Russian Federation aimed at developing forestry complex, inter alia, through implementation of priority investment projects in the field of forestry development where special attention is paid to forest resources. Due to the regional differences in natural and climatic conditions, resource potential, investment promotion activities of the government, substantial heterogeneity  and unevenness in the distribution of such projects is exhibited across the country. In order to prioritize investment decisions and assess the impact of regional incentives on investment promotion in the timber industry complex, an econometric research has been conducted to improve scientific basis for the federal authorities to provide the investors with equal and preferential access to forest resources in the country, with the investors having preference for the regions with developed transport infrastructure. Regional incentives seem to be just an additional advantage for the investors and play a secondary role in promoting investments. The results of  regression analysis show that the most effective government incentives are those associated with financing priority investment projects in the field of forestry development  and special tax regime. The paper encompasses the conclusions and comparative analysis of the research findings with those previously conducted by another author. The work resulted in the formulation of recommendations to improve the instruments of the government investment promotion activities at a regional level. 
Keywords 
government incentives, regions, timber industry complex, priority investment projects, econometric research, regression analysis, model, forest resources, investment decision, investment preferences 



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