Investment processes in the Donetsk People’s Republic: research methodology, trends and development prospects

Abstract

Importance: integration of the economy of the Donetsk People’s Republic (DNR) into the economic space of the Russian Federation, increasing the living standards of the citizens of the Donetsk region to the corresponding level in Russia by 2030, based on the activation of investment activity in the Republic. Purpose: to study the investment activity and investment potential of the DNR, to identify the peculiarities of investment processes, to substantiate the mechanism of accumulation of investment resources in the region. Research design: the theoretical and methodological basis for the solution of the set goal is the fundamental provisions of economic theory in the part of the study of investment aspects of economic development. Based on the platform of Marxist economic theory and modern institutional theory, a critical analysis of the conceptual provisions on the problems of capital accumulation. Attention is paid to some incorrectness in exaggerating the role of trade as the most dynamically developing sector of the economy. Results: the result of the study is the conclusion that it is necessary to adjust the relationship between the categories of «investment activity» and «investment». The former implies not only investment itself, but also a broad system of relations on the organization of this process and, therefore, is the activity of all subjects – from individual citizens to the state, providing the accumulation of investment resources of expanded reproduction. This conclusion necessitates the search for a mechanism of investment activity, activating the interest of all economic entities. Justification of such a mechanism requires taking into account the peculiarities of the investment state of the DNR, identifying the sources and potential of investment resources, and taking into account the economic role of the state. The scale and significance of Russian investments in the implementation of the restoration model of the DNR, the integration of the Republic as a whole into the economy of the Russian Federation are reflected.