Investment instruments to stimulate depressed regions’ development

Abstract

There are a number of problems of regional development, including tgose that impress most of all – the growing differentiation and polarization of the regions’ development. It caused the emergence of so called depressed territories with the level of social and economic development being the lowest among the territories of this type. In this context, it is quite urgent to stimulate the development of depressed territories, in particular, the development and efficient use of investment instruments in this process. This research aims at stipulating investment instruments to support the development of depressed regions. The article considers theoretical grounds of the emergence and functioning of depressed regions, foreign experience on financial support for the depressed territories’ development. Based on experts’ survey, investment instruments to support the development of depressed regions are stipulated, peculiarities of forming priorities of developing depressed regions are specified, an algorithm for selecting top priority areas for economic activity in the depressed region is offered, a generalized system of financial instruments to stimulate the development of priorities for sustainable development of the depressed region is given, and consequences of applying them in the region are characterized.