Long-term economic growth and investment: features of the relationship between the North and the Arctic of the Russian Federation

Abstract

For the North and the Arctic constituent entities of the Russian Federation, the mechanism for the impact of investments on economic growth is quite specific due to special conditions of investment activities in the North. Investment processes in the northern territories are characterized by “extension” or increased duration of investment cycles, instability, but at the same time inertia. The results of the study reveal that “northerness”, as well as the raw material orientation of the economy, make it difficult to determine the relationship between such indicators as “fixed investment” and “gross regional product”, therefore, for these territories there is often no clear and statistically significant connection. The investment growth models in the strategic planning of the socio-economic development of these regions should be applied with due diligence and broad understanding of all the features and factors of economic growth in the North.