Importance The article evaluates how the new investment mechanism, proposed several years ago as part of the adjustment of the corresponding federal law, ensures the development of the regional economy. Objectives The article aims to identify the main trends in investment activity since the commencement of the new law of the Kaliningrad special economic zone. Methods For the study, I used methods of modeling and comparative analysis, induction and deduction, and the graphical interpretation of statistical data. Results I found that the special economic zone customs privileges have been a key factor in investment activity. The general trend in recent years is a sequential deterioration in almost all indicators of the investment activity of the Kaliningrad economy. The main reason for the investment slowdown is a fundamental change in the business environment in the region as a result of the termination of special economic zone customs preferences. Conclusions and Relevance I conclude that the investment mechanism proposed in the new edition of the Federal Law On Special Economic Zone in the Kaliningrad Oblast, has failed to create a new model of sustainable development of the regional economy. It has led to deterioration in the socio-economic situation, including a significant decline in investment activity. The results of the research can be used to develop measures of State regional investment policy and be useful to scholars and practitioners concerned with the effectiveness of the Russian special economic zones.
Lukovtseva A.K. [Investment is the main factor of modernization of economic development]. Audit i finansovyi analiz = Audit and Financial Analysis, 2011, no. 3, pp. 291–294. (In Russ.)
Avtsinov O.I. [Determinants of investment attractiveness of the region]. Vestnik Voronezhskogo gosudarstvennogo universiteta inzhenernykh tekhnologii = Proceedings of Voronezh State University of Engineering Technologies, 2014, no. 2, pp. 195–199. (In Russ.)
Deryabina Ya. [A comparative analysis of the approaches to assessment of investment attractiveness and investment activity of regions]. Investitsii v Rossii = Investments in Russia, 2003, no. 8, pp. 9–19. (In Russ.)
Shpil'kina T.A. [Prospects for the development of investment activity in Russia as a factor in strategic planning]. Vestnik Akademii = Academy's Herald, 2012, no. 2, pp. 18–19. (In Russ.)
Gusarova O.M. [Investment as a factor for regional development]. Fundamental'nye issledovaniya = Fundamental Research, 2015, no. 2-10, pp. 2194–2199. (In Russ.)
Irodova E.E. Ekonomicheskaya komparativistika: monografiya [Economic comparativistics: a monograph]. Ivanovo, ISU Publ., 2011, 139 p.
Kokorin A.A. Sravnitel'nyi analiz: teoriya, metodologiya, metodika: monografiya [Comparative analysis: theory, methodology, technique: a monograph]. Moscow, MRSU Publ., 2009,152 p.
Zel'dner A.G. [The State in the system of sustainable development of society]. Vestnik Instituta ekonomiki Rossiiskoi akademii nauk = Bulletin of Institute of Economics of Russian Academy of Sciences, 2012, no. 6, pp. 66–76. (In Russ.)
Aganbegyan A.G. [Investment is the background of rapid socio-economic development of Russia]. Den'gi i kredit = Money and Credit, 2012, no. 5, pp. 10–16. (In Russ.)
Grigor'ev L., Golyashev A., Mishina O. et al. [Dynamics of investment activity in the recession economy of Russia]. Byulleten' sotsial'no-ekonomicheskogo krizisa v Rossii = Bulletin of Socio-Economic Crisis in Russia, 2015, no. 5, 15 p. (In Russ.)
Ram R. Government Size and Economic Growth: A New Framework and Some Evidence from Cross-Section and Time-Series Data. American Economic Review, 1986, vol. 76, pp. 191–203.
Harrod R.F., Hansen A. Klassiki keinsianstva: V 2 t [Classicists of Keynesianism. In 2 vol.]. Moscow, Ekonomika Publ., 1997, 845 p.
Kuchukov R.A. [Neo-industrial modernization and the role of public sector]. Ekonomist = Economist, 2013, no. 6, pp. 16–25. (In Russ.)
Kolmykova T. [Investment policy and an analysis of the structure of investment in fixed capital]. Predprinimatel'stvo = Entrepreneurship, 2008, no. 2, pp. 84–92. (In Russ.)
Mitsek S.A., Mitsek E.B. [Econometric and statistical evaluation of investment in fixed capital in the regions of Russia]. Prikladnaya ekonometrika = Applied Econometrics, 2009, no. 2, pp. 39–46. (In Russ.)
Calderon C., Serven L. The Effect of Infrastructure Development on Growth and Income Distribution. World Bank Policy Research Working Paper WPS3400, 2004, vol. 1.
Mel'nikov R.M. [Evaluation of the effectiveness of regional investment policy by analyzing costs and benefits]. Region: Ekonomika i sotsiologiya = Region: Economics and Sociology, 2007, no. 3, pp. 178–199. (In Russ.)
Belov A.V. [Theoretical and practical issues of study on budget investments in modern Russia]. Zhurnal ekonomicheskoi teorii = Journal of Economic Theory, 2012, no. 4, pp. 85–96. (In Russ.)
Sharpe W., Alexander G., Bailey J. Investitsii [Investments]. Moscow, INFRA-M Publ., 2001, 1028 p.
Gareev T.R. [Economic zoning: the classical and institutional aspects of development: evidence from the Kaliningrad special economic zone]. TERRA ECONOMICUS, 2009, vol. 7, no. 3, pp. 70–90. (In Russ.)
