Page 62 - Theoretical and Practical Interpretation of Investment Attractiveness

Ensuring the effective use of production resources in the regions, ensuring the
development of production and market infrastructures;
Accelerating the processes of reorganization and modernization of the local
production and economy from a technical and technological point of view;
Ensuring the gradual decrease of local products in the total republic's indicator by
creating various types of production and service areas.
2. In terms of investment attractiveness, it is possible to generalize the strong and weak
sides of the following scheme:
Improving the business environment and facilitating business development should pay
attention to the following:
Reducing administrative pressures and procedures to ensure business
development, creating a simple and transparent tax system, and developing a fair and
comprehensive tax system;
Creating open and fair "games" where all parties (investors, partners) consider
their mutual interests;
Creating infrastructures for the successful implementation of investment projects
and expanding their capabilities; creating innovative ways for the state to implement the
regulatory mechanism, departing from outdated methods;
Increasing the investment climate and image of the country;
Maximizing the use of the country's investment potential and capabilities (in
particular, the independence and capabilities of economic zones), updating experiences from
abroad;
Maximizing the benefits of public-private partnerships. Ensuring the country's
investment corridor and influence.
3. The political situation may play an important role in relation to economic activity,
primarily, compared to the first entrance, foreign economic agents. They are assessed using
two changing indicators. These are the investment rating of the regions and the investment
authority and risk rating. The volume of investments aimed at the main capital reflects the
overall investment environment of the region.
The activity of domestic investors is considered a positive sign for foreign investors.
The level of openness of a region, its volume of foreign trade, both imports and exports, are
related to this. According to some researchers, the geographic characteristics of a region
directly affect the inflow of foreign investments.
It should also be noted that the closer a region is to the capital, the higher the volume
of foreign investments directed to that region. This is because transaction costs are
significantly lower in such cases. The factors mentioned above contribute to shaping the
relative advantage of a region in attracting foreign investments. In this context, foreign
investors consider not only the economic factors of a region but also their social aspects.

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