Page 22 - Theoretical and Practical Interpretation of Investment Attractiveness

Thus, it is necessary to develop a unified systematic approach to assessing the
comprehensive level of investment attractiveness, taking into account all the necessary factors
of investment development of regions with many influencing factors. First of all, state
investment institutions, investment market infrastructures and foreign investors will benefit
from such an assessment.
In addition, the imperfection of existing methods can lead to frequent updating of the
territory management apparatus, as well as the adoption of incorrect management decisions
based on dubious results of assessing investment attractiveness. As a result , management
errors not only do not increase the investment attractiveness of the region, but, on the contrary,
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lead to a decrease in its level .
Currently, any ratings - bank ratings, enterprise ratings, even country ratings - are
recorded as a universal indicator of assessing the economic situation. However, it must be
recognized that the selection of evaluation criteria and the understanding of the results
obtained from this evaluation are more complex. That is, based on the final integral indicator,
it will not always be possible to trace cause-and-effect relationships and the development
trend of a particular investment complex. Nevertheless, ratings that assess investment
attractiveness or its individual components are actively used by investors when making
decisions.
The number of influencing factors can be inherently unlimited. However, the indicators
of investment attractiveness include only factors that are important from an investment point
of view, that is, factors influencing the formation of investment activity in the regions.
The availability of modern means of communication and the level of development of
credit and financial infrastructure are considered important factors determining the influx of
foreign direct investment into the region. A region with developed institutions, i.e. decision-
making based on clear rules and regulations, a good tax system, a high level of participation
of the population in the fulfillment of civil obligations, indicates a favorable economic
situation in the regions of the country.

“A person shows his education with his smile, his level
with what he laughs at”. J. Rumi

1.2. Methodological aspects of determining investment attractiveness

In ensuring the economic development of the country, the role of the regions, the set
of measures implemented in them, the conditions created for entrepreneurship, and the
development of institutional structures that serve to ensure competitiveness are of particular
importance. The annual growth of the gross regional product ensures an increase in the

12 Note: Detailed theoretical and methodological analyzes of these cases will be presented in the next chapters of this
monograph.

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