Mathematical methods for assessing the investment attractiveness of territories

Abstract

The article is devoted to the use of mathematical methods in assessing the investment attractiveness of territories. The work includes the selection of indicators that are the basis for comparison, their mathematical processing and generalization using such methods as normalization of indicators, correlation analysis, t-SNE visualization method, cluster analysis, principal components analysis, ranking method. Using these methods, it became possible to obtain the rating of municipalities on the example of one of the regions of the Southern Federal District of the Russian Federation - Rostov region. The rating is compiled separately for urban districts and municipal districts. The principal components analysis was used to study the relative importance of indicators, which eliminates the need to interview experts in the course of the research. The use of mathematical methods in assessing the investment attractiveness of municipalities made it possible to obtain a final assessment for each municipality, as well as to identify leaders and underperformers. This approach, which is notable for the availability of the information and less time-consuming calculations, is of interest both to local governments of municipalities and regional authorities. This methodology can be recommended to private investors for the selection of investment objects and the assessment of investment risks.