Success Factors of the Implementation of State Measures of Investments Stimulation in Russian Timber Industry

Investment activity is critically important for the development of natural resource management industries in Russia. We believe that these significant volumes of natural resources that Russia possesses can be effectively exploited provided that an effective government policy that stimulates investment is formulated and implemented. When forming an effective industry investment policy, it is advisable to consider domestic and foreign experience, which necessitates a comprehensive analysis of existing investment attraction measures. Firstly, this paper provides an overview of the state investments stimulation mechanisms in natural resource sector, in particular, in timber industry. The most common and effective measures are identified, as well as the institutional features of their application environment. Secondly, the mechanism of priority investment projects implemented in Russia in the field of forest development is being examined in detail, a number of problems associated with its implementation are described. An econometric model is developed to grasp the factors determining the successful implementation of priority investment projects in Russia. The research results provide valuable information for decision making at the state level on the selection of investment projects to be supported.