Page 111 - Theoretical and Practical Interpretation of Investment Attractiveness

investment activities (of course, with a certain time lag) and shows whether the subject’s
investment activity is related to the results of the realization of its attractiveness.
In general, expert assessment methods based on macroeconomic or multifactor models
are widely used. The authors note that, without denying the usefulness of this type of analysis,
which reflects the general picture of problems in each region, the use of most of the listed
methods requires a lot of work, expensive expert actions, and due to the lack of the resulting
number of reliability criteria in the method, which is considered objective in nature, does not
confirm the objectivity of the results obtained.
Of course, there are a number of characteristics that cannot be measured statistically,
but their number is small and of little importance. In this case, the main attention is paid to
real indicators (due to their high level of objectivity), that is, state statistics and quantitative
details of economic, social, natural and geographical indicators of regions that are important
for economic development. investors .
Econometric methods are not widely used in practice, since they are intended to
determine the attractiveness (activity or competitiveness) of a particular industry and
enterprise. However, their gradual adaptation and improvement allows one to obtain good
results. In general, these methodologies use macroeconomic indicators in their rankings.
These methods are the most important: they do not show how one region, for example,
the Republic of Uzbekistan , is ahead or behind another country, and do not provide for
studying the dynamics of these ratings. In fact, when a territory rises in the ranking, it
improves its indicators on its own, since the trend of integral indicators for several years is
zero or negative growth, and an increase in rating can be achieved due to external factors (a
sharp decline in indicators in neighboring countries). At the moment, the most convenient and
objective approach is based on an econometric assessment of statistical data using elements
of methods for realizing investment attractiveness with subsequent correction of the results
based on expert assessment.
Also, in our opinion, in order to increase the level of objectivity, reliability and
accuracy of the results obtained, in addition to operational calculations, it is advisable to
perform calculations in a dynamic mode for at least a five-year period. This allows us to
determine the trend of territory activity. Regions according to this trend This allows you to
maintain the attractiveness of “ previous ” years and identify problem areas for the next
SWOT analysis.
Below is the method involves choosing the best option from alternatives; the level of
validity of calculations is classified as high (compared to scoring methods), since each of
them has a corresponding normalization criterion (that is, bringing the original data to infinite
values) - in our example, this means normalizing the average and maximum amounts. The
resulting standardized initial data allows you to perform any arithmetic operations on them
with the required accuracy k.
In general, the methodology for assessing the investment potential of regions that
include restrictions consists of the following stages of accounting and analytical operations.
1st stage. Quantitative assessment of fog power. It takes into account the following:

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