Page 32 - Theoretical and Practical Interpretation of Investment Attractiveness
P. 32

Taking this into account, the investment climate should be stable in the long term, and
         the investment climate should be variable depending on the demand for (consumed) factors
         (resources) involved in the stages of social reproduction.
              In modern  socio-economic  conditions, investment  penetration  depends on  the
         development of innovative industries and the development of innovative entrepreneurship,
         the investment climate and the investment mechanism.
              In the course of studying scientific research conducted on the regional economy, in this
         study, factors indicating the investment attractiveness of regions were grouped into a single
         system. It summarizes and classifies points of view and scientific and practical views as main
         groups, reflecting the complex indicators of the region (Table 1.2.3).
              Research shows that with a good investment climate, on the one hand, it is possible to
         increase domestic investment and increase savings in relation to consumption in the structure
         of planned expenses. This is a guarantee of high rates of economic growth.

                                                                     Table 1.2.3
                Investment potential of the country and a set of factors influencing it
                                                                      32
                                                     Indicators
            No          Group
                                                      collection
                  I. LEVEL OF INVESTMENT COMPETENCE OF THE REGIONS
                                 INFLUENCING FACTORS
            1.   Natural-geographical       raw materials:  mineral raw materials;  land and water;
                 potential           fuel and energy; various ores and metals.
            2.   Work                    demographic competence of the territory: population
                 potential           density;  quantity  and quality of labor resources; work
                                     force; average monthly wages paid to employees;  number
                                     of unemployed; age level of employed and unemployed;
                                     qualifications and level of unemployed.
            3.   Job                     production capacity:  gross  domestic product (GNP);
                 output power        condition of  fixed  assets;  productivity of production
                                     factors; specialization  of the region  by  industry and
                                     industry; volume of imports and exports.
            4.   Innovative              scientific and  technical  potential of  the region:
                 potential           scientific and technical achievements; having scientific and
                                     academic  degrees; volume of  scientific and  technical
                                     projects; those involved in science; There are research and
                                     development institutes/branches on the territory.
            5.   Institutional           Republican and  local  legislation:  consumer rights;
                 potential           principles of corporate  governance;  healthy  competitive
                                     environment; conditions and information support created
                                     for doing business;  accounting and statistical  reporting;
                                     development of financial markets and institutions.


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           Author description.
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