Page 28 - Theoretical and Practical Interpretation of Investment Attractiveness

Of course, not all indicators reflected in this rating are ideal. They do not reflect the
following important factors: macroeconomic policies, quality of infrastructure, labor skills,
exchange rate fluctuations, investor opinion, factors related to risk and level of corruption.
The ranking announced by the World Bank includes administrative measures created
by the state for opening and running a business, and the main factors related to the economic
potential of the country (market size, labor price, etc.), as well as the capabilities of a potential
investor. face. risks were not taken into account.
The World Economic Forum's Competitiveness Index provides information on the
ability of a country and its existing institutions to deliver sustainable economic growth over
the medium term. The Global Competitiveness Index (Global Competitiveness Index) is
calculated on the basis of 113 named variables based on a very large bank of statistical data
and surveys of company managers. Publicly available statistics make up 1/3 of the total data,
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the rest are collected on the basis of various questionnaires .
These studies present methods and means for determining the investment
attractiveness of a state/territory, and the formulas used serve for a comprehensive assessment
of investment attractiveness (Table 1.2.2).
Table 1.2.2
Reflection of investment attractiveness indicator system
Group Indicator
1. Economic attractiveness Macroeconomic stability ( ms)
Labor market efficiency ( lbe)
Quality of infrastructure ( )
Institutional Quality Level ( IQL)
Domestic market capacity/volume ( dmc )
Level of technology development ( ltd)
Innovation potential ( ip)
2. Legal appeal Favorable conditions for doing business from a legal
point of view
3. Risks in the investment Demographic pressure level ( dpl)
process Segment of the population dissatisfied with current
politics and life (nb)
The state of corruption in government agencies
(DTC)
Level of violation of human rights and freedoms
Level of influence of senior management teams

Level of influence of state security agencies
Impact level of other countries/territories
Source : Schwab K. World Economic Forum: Global Competitiveness Report. Geneva:
World Economic Forum, 2013.
The World Economic Forum uses the following formula to determine economic
attractiveness:

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Schwab K. World Economic Forum: The Global Competitiveness Report. Geneva: World Economic Forum, 2013.
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