Subject The article considers the mutual influence of investment appeal of the region and its industry performance. Objectives The aim of the study is to prove or disprove the hypothesis that regions, which are more attractive to investors, demonstrate better industry performance as compared to other regions. Methods The study rests on calculating the summary measure of industrial enterprises' operations in each region over 2005–2012. The results are compared with estimates of investment appeal of regions before and after the period under investigation. The estimates are taken from the data of Expert RA rating agency. Results The findings show that the hypothesis is confirmed only partially. Regions that had low investment potential in early 2000s demonstrated poor performance of industry during subsequent years. However, regions that are leading in industrial production are not always characterized by investment appeal.The findings may be useful for both practical application and scientific research. In practice, the revealed trends may be considered by companies evaluate the investment attractiveness of regions, public authorities, and private investors when making appropriate decisions. Relevance As part of the theory, the findings may be interesting for further study of the phenomena, using econometric methods that enable to identify and describe the observed trends more accurately.
Keywords: investment, regional economy, mining industry, manufacturing sector, production
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