Current trends of investment climate impact on economic growth

Abstract

The article focuses on the role of investment in justifying the prospects for economic development in the context of the transition to sustainable economic growth of the Russian economy. Without assessing the role of the investment resource, it is impossible to determine the strategies for the country's social and economic development, to develop and implement national, sectoral and regional programs. At the same time, foreign investment as an integral part of an open and effective international economic system is one of the catalysts for the growth of the economy, which is a consequence of globalization processes. In financial resources-constrained environment, the formation of a favorable investment climate, attracting investment in the country's economy as a whole has a positive impact; its rational use affects the competitiveness of domestic goods, the introduction and assimilation of new technologies, and the growth and development of production. The need for large investments in the Russian economy has been identified, which involves expanding the scope of investment activity and changing its structure in accordance with innovative priorities, without which qualitative economic growth is impossible. The Russian economy opened its domestic markets when it moved to the market economy model, but it proved to be uncompetitive that led to a further raw-material orientation of Russian exports. The rejection of the export-raw-material model is a theoretical and practical task, which requires withdrawal from the existing investment model. One should form such a model that meets the strategic tasks of the country, provides innovative development and modernization of the economy, forms a progressive type of reproduction and meets the vital needs of the Russian economic model. Active combination of innovative and investment processes can provide qualitative changes in the economy.