Procedure for Regional Investment Potential Assessment by Institutional Sectors of Economy

Background/Objectives: The article is aimed to develop and substantiate the author’s procedure for assessing regional investment potential by institutional sectors: investment potential of financial and non-financial corporations, households, public administration. Methods: The research is based on the problems of determining the amount of unused investment resources of the Far Eastern Federal District, as well as on evaluation of all components of the investment potential of this region and distinguishing its problematic elements. The research methodology includes the economic-statistical, computational and constructive method and comparative analysis. Findings: The provided procedure has allowed assessing the total investment potential and its individual elements in the Far Eastern Federal District; the level of its use was also evaluated. It is noted that in the FEFD territory the resources financial corporations are a key element of the total investment potential. The study revealed that FEFD has high reserves of unutilized investment resources, enabling, in the case of their use, to increase significantly GRP of the region. The study showed the applicability of the procedure for investment potential assessment by institutional sectors at the regional level. The proposed procedure allowed showing the FEFD investment potential in the context of institutional sectors, identifying the shadow economy; estimating the amount of unutilized investment resources of the District; calculating the level of FEFD investment potential use and determining that the available investment opportunities are not used fully in the region; determining the change in the economic indicators of the District, taking into account the involvement of the entire total investment potential of the territory. Application/Improvements: The proposed procedure will enable to pursue a competent investment policy, providing a constant inflow of investments with the greatest possible involvement of investment potential of the territory.