The problem of the impact of investment activity on labor productivity in the territories and macro-districts of the region is considered. The object of the study was the territories of macro-districts, including the Krasnoyarsk territory. The subject of the research is the processes of labor productivity transformation under the influence of investment activities in the direction of improving the efficiency of the economy of territories. The scale of investment processes is estimated in relation to the number of economic entities in the region. To assess the quality of investment in terms of technically and technologically sufficient armed labor, it was compared with the investment capital per employee. An indicative approach is used to assess the investment resources spent and their return in the form of capital strength and labor productivity. The resource indicator is represented by the ratio of investment in fixed assets to capital stock and labor productivity, and the efficiency indicator is represented by the ratio of financial results and gross value added to investment in fixed assets. This allows us to compare resources and the efficiency of their use to identify areas with problems of labor productivity growth within the economic system of the region, to suggest mechanisms for increasing investment activity in non-resource industries and the development of forms of support for them at all levels of government.
Keywords: Labour productivityinvestment activityspace of the regionresource indicatorsindicators of efficiencies
The problem of investment activity of regions has always been the basis of the resource potential of their economic growth and development (Edronova & Maslakova, 2018; Ivanov & Buchwald, 2018). The gross regional product or gross value added generated in the process of its implementation due to the introduction of new capacities and technical and technological renewal of existing ones increases even more, which makes it possible to increase the competitiveness potential of territories and the quality of life of its population (Bohomazova, 2014; Kabanov, 2015). In this regard, the assessment of investment productivity, its measurement in the space of territories, the search for factors/resources, the allocation of their features, the formation of risk areas and opportunities, is relevant for a region such as the Krasnoyarsk territory, whose GVA in 2017 amounted to 10.4 % of the total GRP of the Russian Federation (Table
The share of Krasnoyarsk territory in the Russian Federation in 2010-2017 was stable at the level of 2.5%. Manufacturing industries in the structure of the region's economy as the main producers of GVA took 31.8% in 2018 and decreased by 2.7 percentage points compared to 2010 (Table
The share of fixed capital investment in gross value added was also unstable, amounting to 76.2% of the 2013 level (Table
Investments in fixed capital are transformed into fixed assets and capital productivity, which, in turn, are determined by its technological level (Table
In turn, the capitallabor ratio has also affected the growth of labor productivity in the region (Table
So in 2017, it increased by 1.8 years compared to 2010. At the same time, labor productivity remains low in the basic non-resource sectors: agriculture, manufacturing, trade, transport, etc. There are no statistics on labor productivity in the spatial aspect, and its relationship with investment processes also remains closed.
Materials and Methods
The object of research is the Krasnoyarsk territory, which includes 6 macro-districts and 61 municipalities. The subject of the research is the processes of labor productivity transformation depending on the resources used and the results achieved.
The research was based on statistical materials of the Krasnoyarsk state statistics service and an automated information system for monitoring municipalities in the Krasnoyarsk territory (Automated information system for monitoring municipalities, n.d.; Krasnoyarsk state statistics service, n.d.).
Based on the significance of various territories in an objective assessment and comprehensive analysis of the subject of research, the following approach to research is defined.
A chain of factors/resources that affect labor productivity growth is highlighted. The primary basis was the investment resources that provide the capital equipment of production systems, which are transformed into the productivity of their labor and its effectiveness. Thus, it is possible to conduct a comparative assessment of territories, identify leaders among them, and find solutions to problems for outsider territories.
To position the territories of the region, an indicative approach is used, when ratios are determined indicating the amount of resources used to achieve effectiveness (resource indicators) and the effectiveness of processes from the resources used (efficiency indicators).
The resource indicators will include such ratios as: investment in fixed assets (IFA) to capital labor ratio (CLR) – IFA/CLR; investment in fixed assets (IFA) to labour productivity (LP) – IFA/LP.
Indicators of the effectiveness of investment activity (efficiency indicators) include the following ratios: gross added value (GVA) to investment in fixed assets (IFA) – GVA/IFA; financial result (FR) to investment in fixed assets (IFA) – FR/IFA; labour productivity (LP) to investment in fixed assets (IFA) – LP/ IFA; labour productivity (LP) to capital labor ratio (CLR) – LP/CLR.
Resource indicators characterize the amount of investment in fixed assets per unit of capital labor ratio and labor productivity as the resulting indicators of investment activity.
Efficiency indicators determine the effectiveness of investment activity.
The research process determined the following sequence of analytical steps:
1. Analysis of investment activity of territories;
2. Characteristics of labor productivity of territories;
3. Assessment of resource and efficiency indicators, positioning of territories.
The analysis of investment activity by macro-districts and territories of the Krasnoyarsk territory reflected the potential for its accumulation over the period 2015-2018. Thus, the Eastern macro-district is characterized by small investments and the mobility of investment processes - from growth to decline and back (Table
The investment process in the territories of the Southern macro-district was also not stable (Table
Thus, positive dynamics of activity took place in Yermakovsky (+31.5%), Krasnoturansky (+20.9%) and Shushensky (+1.0%) districts. Kuraginsky district (744133 thousand rubles) and Minusinsk city (496020 thousand rubles) were characterized by large investment amounts, but they were still insufficient for updating production on a modern technical and technological basis.
According to the average annual dynamics of investment in fixed assets, the territories of the Western micro-district can be divided into two groups, depending on its growth or decline (Table
In most territories (8 out of 14), investment growth rates ranged from 5 to 40%. Significant growth rates were observed in Achinsky (+36%), Bogotolsky (+35.4%), Kozulsky (+24.3%) districts, and Nazarovo city (+43.1%). By the volume of attracted investments - Bolsheuluisky (6936821 thousand rubles) and Sharypovsky (12068576 thousand rubles) districts.
The scale of investment processes in the territories of the Priangarsky macro-district was determined by the interests of large corporate structures and, although they generally had a negative average annual dynamics for 2015-2017, they provided adequate increases in the volume of GVA territories (Table
It is worth noting Motyginsky district with its potential for gold mining, where the average annual growth rate of investment was at the level of + 16.7% and reached in 2018 the volume of investment in 3390964 thousand rubles.
The territories of the Northern macro-district of the region are specialized in the industries that produce and process these raw materials and are always attractive for investment in the conditions of growing global markets (Table
However, the situation with investment activity is ambiguous. In Norilsk – from growth in 2016 (+25.8%) to a fall in 2017 (-30.0%) and again growth in 2018 (+16.2%). In the Taimyrsky district-growth (1.86 times), then over the next two years, the fall. In Turukhansky district – from a fall in 2017 to an increase in moderate activity. In Evenkisky district – in 2017, the growth in investment almost 2 times (1.86) and their gradual decline, which provided an average annual rate of 121.1%.
Describing the investment process in the Central macro-district, it should be noted its stable dynamics in all territories, except Bolshemurtinsky district, where in 2016, compared to 2015, investment decreased by almost 2 times (Table
Describing investment activity in the Central macro-district, it is impossible to single out any of the territories where the process would proceed without failures. In 2016, there was an increase in investment in Balakhtinsky, Berezovsky and Emelyanovsky districts, in the rest they decreased by an average of 50-70%. In 2017, investment-active territories continued to grow. In Emelyanovsky district and Divnogorsky city, for example, investments increased by more than 2 times compared to 2016.
Territories that reduced investment activity, on the contrary, accelerated the process of activity, except for the Mansky district. In 2018, we managed to attract investment in Sosnovoborsk city (396.8%) and Mansky district (2 times). This is due to the demand for the products of new industries that are opening with the specialization of agricultural and timber processing.
In 2018, the production of 1 ruble of GVA accounted for less than a ruble of fixed assets in Bolshemurtinsky (0.87 rubles), Emelyanovsky (0.52 rubles), Bolsheuluisky (0.69 rubles), Partisansky (0.72 rubles), Uyarsky (0.83), Eniseisky (0.93 rubles), Motyginsky (0.39 rubles), Turukhansky (0.59 rubles) districts, as well as in the cities of Norilsk, Minusinsk, Borodino, Achinsk, Bogotol. The capitallabor ratio was high in Bogotolsky (214.2 rubles), Kozulsky (61.1 rubles) and Achinsky (17.6 rubles) districts. In the first case, low capitallabor ratio indicates a balance of the used capacity in terms of labor productivity, in the second - the inefficiency of the used fixed assets and their low productivity. In general, the capital intensity was provided by an increase in the cost of fixed assets by 1 ruble GVA from 1 ruble to 10 rubles. Among the balancing territories are Balakhtinsky (1.35 rubles), Sukhobuzimsky (1.61 rubles), Uzhursky (1.53 rubles) districts, Achinsk and Bogotol, Krasnoturansky (1.30 rubles) and Minusinsky (1.17 rubles) districts.
As a result of the increase in the capital intensity of production, the increase in the labor capital intensity was observed. Its analysis as an indicator of the effectiveness of investment processes in the territories suggests positive development. Since 2015, only two territories of the region (Turukhansky and Achinsky districts) have had negative average annual growth rates. The highest average annual increases in capital stock were observed in Boguchansky (+125.4%), Evenkisky (+99.8%), Tyukhtetsky (+18.0%), Bolshemurtinsky (+33.5%), Berezovsky (+16.4%) districts, in the cities of Krasnoyarsk (+17.8%) and Sosnovoborsk (+30.1%).
In turn, the labor capital ratio as a result of investment activity is aimed at ensuring the growth of labor productivity in the region's economy. Its research on the territories of macro-districts shows different efficiency of return on invested capital. Thus, the dynamics of labor productivity in the Priangarsky macro-district in comparison with other macro-districts is falling and is 90.2% (Table
In 2018, low values of the indicator in Eniseisk (20.6 thousand rubles/person) and Lesosibirsk (6.9 thousand rubles/person), negative values in Boguchansky district (-731.4 thousand rubles/person). Territories with positive growth dynamics (Eniseisky, Kazachinsky, Pirovskiy districts) reached labor productivity at the level of 350 thousand rubles/person, which is typical for agricultural and processing production profiles.
Labor productivity in the Severo-Eniseisky district at the level of 5036.7 thousand rubles/person increased in 2016 (63.2 times), decreased in subsequent years almost to the initial level due to insufficient volumes of generated GVA.
At the same time, in the Central macro-district, which specializes in manufacturing, the growth rate, although negative, in Sosnovoborsk provided an increase in labor productivity at the level of 93.8% (Table
Problems arose in Emelyanovsky district in 2018, but they did not affect its average annual dynamics (+4.4%). The value of the index, all areas of macro- district can be divided into two groups. The first with capacity ranging from 300 to 600 thousand rubles per person, which includes Sosnovoborsk (366,9 thousand RUB/person), Balakhtinsky (345,7 thousand RUB/person), Berezovsky (453,5 thousand RUB/person), Mansky (311,6 thousand RUB/person) and Sukhobuzimsky (318,2 thousand RUB/person) areas. The second – from 600 thousand RUB/ person and higher. And in the second group of territories, only Divnogorsk reached the highest value in 2018, the rest with a capacity of 600 to 1000 thousand rubles/person (Krasnoyarsk, Bolsheuluisky, Emelyanovsky districts). The transformation of labor productivity in the region makes it necessary to measure it with the capital strength and investment invested in its support. To do this, you should use a resource indicator that reflects the size of their contribution to achieving the above indicators.
The summarized data below reflect the different results of investment activity in improving productivity and labor capital availability in the Krasnoyarsk territory's macro districts in 2018 (Table
In the Southern macro-district, the least investment activity is spent on the growth of the capitallabor ratio. Most of it is spent in the Western macro-district. The Northern macro- district is singled out from the analysis due to the specifics of extractive industries and large amounts of resources spent, which are not comparable with other territories. In terms of labor productivity growth, the most investment activity is accounted for in the Priangarsky (4153.4 rubles/RUB) and Western (3918.5 rubles/RUB) macro-districts. There is a trend in the territories when more investment activity is spent on obtaining labor productivity than on capital-intensive processes. The difference between macro regions is: Southern – 2.4, Priangarsky-2.9, Eastern-2.1, Western-5.3, Central-1.7. This confirms the role of capitallabor ratio in the growth of GVA. Capitallabor ratio is more voluminous in terms of resource than labor productivity, as evidenced by the indicator, but the return on it is manifested with a multiple increase in labor productivity. Investment activity also manifests itself in the resulting performance indicators – the financial result of the business and and the gross value added of territories (Table
Investment activity correlated with the financial results obtained shows that most of the region's territories receive from 0.01 rubles (Mansky district) to 0.86 rubles (Shushensky district) for the invested 1 ruble. High returns in the investment-attractive Northern and Priangarsky macro-districts. Negative results are accompanied by investment activity in Kuraginsky (+0.15 RUB/RUB), Ermakovsky (-0.02 RUB/RUB) and Sayansky (-0.16 RUB/RUB) districts.
The effectiveness of investment activity is also reflected in the GVA received by the subjects of territories. Table
The indicator FR/IFA characterizes the efficiency of business investment activity, while the GVA/IFA indicator characterizes the total efficiency of economic sitsem of territories. The table shows its values in 2018, allowing us to speak about the preferential return on investment activity in the amount of up to 10 RUB/RUB: from 0.4 RUB/RUB in the Bogotolsky district to 9.3 RUB / RUB in the Karatuzsky district. There was a negative GVA in Boguchansky district (-0.7) due to the negative financial result.
The highest rates of return on investment activity are in the Eastern macro-district. The average annual growth rate of over 100% is observed in Sayansky (+236.7%) and Partisansky (+115.6%) districts. In the Western macro-district such growth rates are observed in the Tyukhtetsky district – 119.3%. About half of the territories in each macro district have negative growth rates of performance indicators.
All this affects the development of economic sectors and the competitiveness of their products.
It should be noted the contradictory impact of investment activity on economic growth in macro-districts and their territories, which allows positioning them, making a choice between them, and allocating situations of optimal use of resources for the growth of capital and labor productivity in the direction of increasing the volume of GVA.
Analysis of the problem of labor productivity transformation as a result of investment activity revealed a number of trends that affect its growth. The first is related to the dynamics of investment activity, which takes a balanced character in territories without relying on extractive industries. Territories whose economy is based on extractive industries are unbalanced in terms of efficiency and resource return. Territories where both types of production are present are either on the wave of investment activity, or under it. All this makes it necessary to choose the tools for decision-making in each of these cases. It is necessary to regulate the database on investment activity for economic sectors, which at the stage of approval will allow you to build thresholds for returns in the form of GVA, capital strength and labor productivity.
The second trend is based on the interdependence of the technological level of production, regulated by the capitallabor ratio, as a result of investment activity and labor productivity, which, in turn, forms the GVA of territories and the financial results of economic entities. The implementation of the national project "labor Productivity and employment", taking into account the mutual influence of labor productivity and gross value added, will allow us to consider investment activity in this direction, which will strengthen the validity of strategic decisions.
The study identified problems of labor productivity transformation under the influence of investment activity, identified the most successful territories that have reached a balance of indicators, and identified problem points for making special management decisions.
The project №19-410-240007 «Metrics of factorial assessment of reserves of internal potential and the effects of growth in labor productivity in non-resource sectors of the economy to support the digitization of the integration processes of business entities in the region» was funded by RFBR, Government of Krasnoyarsk Region and Krasnoyarsk Regional Fund of Science.
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Vasilyeva, Z., Moskvina, A., Ryzhkova, O., & Bagdasaryan, L. (2021). Labor Productivity In The Region: Aspects Of Influence On Investment Activity. In & N. Lomakin (Ed.), Finance, Entrepreneurship and Technologies in Digital Economy, vol 103. European Proceedings of Social and Behavioural Sciences (pp. 62-74). European Publisher. https://doi.org/10.15405/epsbs.2021.03.10