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Studying the Factors of Investment Attractiveness of the Region in the Context of Formation of Principles of Ensuring Its Competitiveness

Journal: Scientific Bulletin of Mukachevo State University. Series “Economics” (Vol.4, No. 1)

Publication Date:

Authors : ;

Page : 170-174

Keywords : investments; investment attractiveness; regional economics; factors of investment attractiveness; competitiveness;

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Despite the fact that many national and foreign researchers deal with studying the problems of investment, the issue of determination of investment attractiveness of the region remains open today, there is no single system of classification of investment attractiveness factors as well. For national science, this trend is promising and relevant, especially in the formation of regional development strategies. The research of investment attractiveness of the region has been conducted, the main factors affecting it have been identified. Scientific works of local researchers, publications and reports of international organizations, data of international economic ratings have been analyzed. It has been determined that the investment attractiveness of the region is a set of attributes, properties inherent to the region, on which the investor's opinion is based with regard to ability of the region to effectively raise capital. Having summarized the results of the research on the investment climate and regional attractiveness, four groups of factors that influence decision-making by investors have been singled out: sociopolitical, economic, informational, geopolitical. The group of sociopolitical factors characterizes the quality of human resources, business environment of the region, political system, makes it possible to assess the level of development of social infrastructure, the legal framework in the field of investment. Economic factors form a picture of the distribution of resources; influence profitability of the investment projects. In the current conditions of the world economy development one can observe an increasing role of information in achieving social and economic progress. Submission of true, accurate, current information about the region in the form of promotional activities attracts the investors, increases their interest in the region as a potential object of capital investment. Geopolitical factors related to geographic location, land area, number and ethnic composition of population, and proximity to national borders are of great importance, because the investors pay their attention to these factors in the first place during evaluation of attractiveness of the region. Equally important for the image of a region or a country are the results of assessments by independent experts from international organizations and rating agencies. The most common economic indicators that can be used in the study of the investment attractiveness of the country is the Corruption Perception Index, the Gini coefficient, the Global Competitiveness Index and the results of Ease of Doing Business ranking. Thus, based on the results of the analysis of these factors, we can get information about potential opportunities of the region, on the basis of which the investor decides on the advisability of investing.

Last modified: 2021-08-19 17:54:29