Investments in fixed assets and their role in the socio-economic development of regions (using the example of regions of the Siberian Federal District)

Abstract

There are two main approaches to regional development: intensive and extensive. The intensive approach focuses on improving the efficiency of production resources through the use of scientific and technological advancements. This involves the active use of new technologies and knowledge, as well as the development of skills and competencies among workers. This method reduces dependence on limited natural resources. In an extensive development path, an increase in output is achieved by attracting additional resources (labor, capital, and land) without increasing their productivity, which can lead to resource scarcity or reduced returns. In practice, extensive and intensive growth do not occur in a pure form; instead, they overlap and interact. Investments can contribute to both intensive and extensive. They can be invested in expanding existing production, as well as in creating new organizations based on advanced technologies. The subject of the study is investments in fixed assets and their impact on the level of socio-economic development in the regions of the Siberian Federal District. The objectives of the study are to examine the sources of investment formation in the context of external sanctions and to analyze the tax regulation of the investment process. The study used the following methods: analysis and synthesis, generalization, grouping, comparison, and others. The study found that in the context of Western sanctions, the absence of external sources, and the increase in the income tax rate to 25 %, tax methods of regulating investments through the use of investment tax deductions and federal investment deductions have become particularly relevant. The importance of an intensive development path is further emphasized by the lagging behind of the regions of the Siberian Federal District in terms of socioeconomic development.