Page 29 - Theoretical and Practical Interpretation of Investment Attractiveness

IJ = mb + mbs + is + isd + ibh + trd + is (1.1)
IJ is a country’s indicator of “Economic Attractiveness”.
The “doing business” rating is used to determine legal attractiveness.
૚
ࡴࡶ ൌ (1.2)
۲۰
Here HJ is legal attractiveness; DB – country ranking in “Doing Business”.
૚
࢘࢏࢙࢑ ൌ (1.3.)
܌܊܌ାܖ܊ା܌ܜܓାܑܐ܍ܘ܊ ାܡ܊ܗ܏ା܌ܠܗܜା܊ܜ
Here, risk is the level of risk in the investment process: the higher the value of the
indicator, the lower the level of risk when placing capital investments.
The next project is the Country Disadvantage Index, which represents the investment
climate divided into three groups (economic, social and political) based on the 12 principles
of the Peace Fund. To the social group: the level of demographic pressure, the level of
migration, the number of dissatisfied with life, emigrants who left the country; to the
economic group: disproportion of economic growth, level of economic instability; to a
political group - the criminal involvement of government agencies, the quality of service of
public organizations, violation of human interests and laws, the sphere of influence of various
groups and clans, and the interference of other states in the internal affairs of the country are
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taken into account .
The investment environment (or investment environment) is a concept used in a very
broad sense and includes all the problems and issues that an investor considers. The investor
evaluates the favorable and unfavorable aspects of investing in a particular country, with great
importance attached to the ideology, politics, economy and culture of the country in which he
wants to invest his capital.
Investment risk is determined on the basis of a comprehensive and in-depth analysis
of the investment environment. The investment climate and the level of risk are inversely
related to each other. That is, the more favorable the investment environment, the lower the
entrepreneurial risk of the investor, and this increases the influx of investors. Conversely, if
the investment environment is unfavorable, the level of risk is high. This leads to increased
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costs for the party receiving the investment .
The investment environment is an objective category that reflects the totality of
conditions that actually exist for investors at any given time. In particular, the effectiveness
of government is one of the factors determining the investment environment. Based on this,
it can be emphasized that each capital-attracting country has a specific investment system.
This system includes a system for accepting foreign investment and an investment
environment consisting of legal norms and institutions. The system for receiving foreign
capital is an integral part of the investment environment and is organized independently of it.
Because it can change the investment environment. If the system for receiving foreign
investment shows the receiving party that foreign capital easily enters the national economy,
the investment environment assesses the situation of optimal growth of incoming capital into

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The Failed States Index Rankings. URL: http://ffp.statesindex.org/rankings.
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Pinali E. Investment climate and the private sector. // Economic Review. - 2005., N.42-43 9, C.
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