Socio-economic approach to transport investments evaluation

Background: Transport plays a crucial role in socio-economic and social processes. Despite the fact that transport can be considered as an independent industry, and transport development projects can be considered as independent business projects, the spectrum of transport influence has not yet been fully studied. A qualitative examination of the spheres of influence of transport shows its impact on all significant aspects of socio-economic relations in society.

Nevertheless, classical methods of financial management are used to assess the effectiveness of investments in transport, which do not allow to fully reflect the effects arising from the implementation of such investments.

As practice shows, the use of classical approaches does not allow us to reliably assess the effectiveness of investments in transport. The choice of approaches to assessment is directly dependent on the socio-economic model of the state. The capitalist model focuses on the income received from the implementation of any investment project, whereas the socially oriented model peculiar to Russia is initially focused on the formation of the public good.

The latter approach, in our opinion, is strategically more advantageous on a national scale and requires wide dissemination for the purposes of financial and economic analysis

Aim: to consider the list of methods for evaluating investments in transport and determine a set of factors that require consideration for a socially oriented economy.

Materials and methods: the research methodology is based on the analysis of methods of financial and economic evaluation of investment projects, socio-economic analysis, as well as macroeconomic methods. The information base of the study is based on official legal and methodological information of the authorities of the Russian Federation.

Results: as a result of the study, a list of factors that need to be taken into account when assessing the effectiveness of investments in transport within the framework of the paradigm of socially oriented public administration is determined.

Conclusion: the study confirms that the methods currently used to assess the effectiveness of investments in transport do not fully reflect the effects arising from their implementation. The proposed approach to determining the list of socio-economic effects resulting from the impact of transport projects will improve the quality of management decisions in the transport sector.