Page 96 - Theoretical and Practical Interpretation of Investment Attractiveness

economic potential in the management of regions, to increase the attractiveness of the
investment environment, and to conduct the economic policy as a support for it.
Based on the availability of these internal opportunities, the state implements socio-
economic programs aimed at comprehensive development of the regions and ensuring the
well-being of the population living there.
3. There are also cases in the economy where excessive capital reserves reduce the
productivity of the capital factor and ultimately have a negative effect on the volume of
production. Due to this, along with the increase of the capital reserve, the quality indicator of
the labor resources should also increase in parallel.
This can be observed in the example of Tashkent city: in 2015 and earlier years, while
the volume of fixed capital investments in the region was around 25% of GDP, due to high
labor productivity, the national wealth created in the region was 19% of GDP (the highest
indicator).
In 2015, the volume of investments in fixed capital was 43% in Kashkadarya region,
40% in Bukhara region and 31% in Syrdarya region. The share of these regions in GDP was
9, 7, 2 percent, respectively.
This indicates that there is not a very high correlation between the investments made
and the national wealth created during the year. Therefore, it is appropriate to take into
account all factors and make reasonable economic decisions based on accurate regression
models when developing comprehensive regional development measures.

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