Description:
In this article we propose our view on investment potential of region as the potential of its balanced development that provides normal guaranteed level of economic income for all owners of capital resources. We defined following basic factors characterizing region’s competitive advantages and taken into consideration when its investment potential is estimated: infrastructural development of the territory; intellectual and innovation potential of the population; region’s natural features including geographic position and allocation of natural resources. In the article we prove that region’s investment potential depends strictly on absolute (natural) advantages connected with few branches. As a result local territory is unable to attract and hold large population and differentiated capital for a long time. The economic development process is cumulative for regions with some natural advantages because of high mobility of capital. This effect results in more rapid rate of economic income accumulation or deeper depression phase. Thereby region’s economic prosperity or economic collapse is self-developing process that increases unevenness of regional development.