The paper examines two main approaches to the analysis, estimation and forecasting of investment activity in the Russian regions, i.e., the investment climate approach and regional reproduction process approach. The empirical testing of estimations made within both approaches show that, due to the specific features of the Russian economy, the investors tend to ignore the investment potential of the regions and, the more so, the regional investment risks. For this reason, the investment climate approach is little used in forecasting and in recommendations given to regional administrations. At present the reproduction approach is more practicable, and it makes the focus of this paper.
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