Ensuring financial self-sufficiency of the region: Theoretical and investment aspects

Introduction: the article considers the issues of ensuring financial self-sufficiency of the constituent entities of the Russian Federation in the context of the analysis of existing theoretical provisions on this concept and the investment sphere of the regions. Objectives: to clarify the definition of “financial self-sufficiency of a region” from the standpoint of the need for a comprehensive accounting of the financial resources of the territory, as well as to analyze the investment aspect of ensuring financial self-sufficiency of regions. Methods: systems analysis, statistical method, grouping, standardization, graphical method. Results: the concept of “financial self-sufficiency of a region” is found to be confused with other categories (financial autonomy, independence, etc.). A refined interpretation has been proposed that considers the financial resources of all institutional sectors of the economy, as well as the capabilities of the regional system and the conditions of competitive pressure from the external environment. Based on the results of the analysis of economic security indicators in the Volga Federal District regions that affect the investment aspects of financial self-sufficiency, heterogeneity of their dynamics was established during the period under review (deterioration in 2010–2019 and strengthening since 2020). The most significant negative impact was exerted by the innovation factor (low level of R&D expenditure). It was revealed that in the structure of regional investment investments, in contrast to foreign practice, the potential of the banking sector is poorly used. The development of technological entrepreneurship is proposed as a promising direction for increasing investment activity in the regions. Conclusions: in the context of stronger protectionist policy in the global economy and the presence of relatively high resource security, Russian regions show an improvement in the overall level of investment development, but this is still insufficient from the standpoint of economic security requirements. More active use of financial potential of the household sector, as well as banks, for investing in the economy (especially in the innovation sector) will contribute to the overall strengthening of the financial self-sufficiency of the regions.