Attracting investments in the Arctic: in which regions are Arctic residents the most significant, effective and sustainable?

Abstract

The high geopolitical and strategic importance of the regions of the Arctic zone of the Russian Federation, on the one hand, and the presence of climatic, socioeconomic and infrastructural limitations on their development on the other, determine the need to use special economic institutions for the Arctic territories. And one of them is the institution of Arctic residents, which involves the creation of preferential treatment and attraction of new investors to the Arctic. The purpose of the article is to assess the effectiveness of the Arctic residents’ institution as a tool for the development of the Arctic territories and the reduction of their polarization. The study assesses the investment attractiveness of the regions of the Arctic zone of the Russian Federation using econometric methods and cluster analysis, taking into account statistical indicators and expert assessments in five areas for 2010—2021. Also, using similar methods and according to financial statements the authors analyze the economic efficiency and sustainability of 295 economic entities that received the status of Arctic resident in 2020—2021. The level of investment attractiveness of the regions they compare with the efficiency and sustainability of the residents functioning on its territory. They have revealed that the institution of Arctic residents, although contributing to the development of the Arctic regions, leads to further polarization of their indicators. The theoretical significance of the work lies in the formation of the authors’ methodology for ranking the Arctic regions and residents. The recommendations elaborated within the framework of the work are of practical importance for the further development of the Arctic.