Back to Search View Original Cite This Article

Abstract

<jats:p>The mining industry of the Russian Federation accounts for 12–14% of GDP and shapes the economic profile of 28 resource-dependent constituent entities of the Federation; yet the digitalization level of financial management in the sector remains among the lowest, i.e. only 11,6% of the mining companies had adopted digital platforms by 2023. The study aims to quantitatively assess the impact of implementing digital financial flow management platforms at mining companies on the trends of investment attractiveness of the resource regions. A hypothesis is made that the regions where the share of the mining operations with integrated digital financial platforms exceeds 25% exhibit a statistically significant increase in the investment attractiveness index of at least 1,5 points during 2020–2025. The methodology combines correlation-regression analysis of the panel data across 12 resource regions of the Russian Federation, the Data Envelopment Analysis (DEA) to assess the digitalization efficiency, and the Monte Carlo scenario modeling (10,000 iterations). The empirical base encompasses data from Rosstat, corporate reports of 47 mining companies, and the NRA/Expert RA investment attractiveness ratings for 2020–2025 (72 observations). The Pearson correlation between the level of financial management digitalization and the regional investment attractiveness index is r = 0,89 (p &lt; 0,01), with the coefficient of determination R2 = 0,79. The implementation of digital platforms ensures a 12–15% reduction in the operating costs, a 30% acceleration in the financial closing periods, and an 18–22% decrease in the transaction costs. The compound annual growth rate (CAGR) of the attractiveness index for highly digitalized regions (7,2%) exceeds that of the low-digitalized regions (0,9%) by a factor of eight. The results confirm the hypothesis and justify the need for governmental support of financial management digitalization in mining companies as a tool for reducing interregional investment inequality.</jats:p>

Show More

Keywords

mining financial investment attractiveness regions

Related Articles

PORE

About

Connect