Influence of Regional Investment Climates on the Development of the Bond Market

ABSTRACT

This article reviews methodological approaches for a quantitative assessment of the influence of investment climates on regional bond markets. In turn, this assessment looks at how elements affecting the quality of investment climates influence the realization of regional bond markets and their potential for growth in the federal okrugs of the Russian Federation (RF). This article also describes a mathematical model of bond markets, which includes parameters depicting the investment climate’s effect on regional investment potential. With this, it presents quantitative analyses of the parameters affecting the investment climate. These analyses were obtained based on the regional ratings of the leading Russian analytical expert agencies. In addition, the article provides an assessment that uses this model to show the dynamics of the bond market in a regional context. Finally, it makes conclusions about the RF bond market’s potential for growth and the measures required for this growth.

KEYWORDS:

• attracting investments
• bonds
• investment climate
• potential of the market in a regional context

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

¹ Agentstvo strategicheskikh initsiativ (ASI) (available at http://asi.ru/investclimate/rating, date accessed: August 22, 2017).

² Reitingovoe agentstvo Ekspert RA (available at https://raexpert.ru/ratings/regions, date accessed: August 25, 2017).

³ Available at https://www.nsd.ru/ru (date accessed: July 25, 2017).

⁴ Reitingovoe agentstvo Ekspert RA (available at https://raexpert.ru/ratings/regions, date accessed: August 25, 2017).