Abstract

The investment potential of a municipality is a complex quantitative characteristic of the saturation of the territory with resources, the availability and volume of which has a significant impact on making investment decisions. The assessment of the investment potential of municipalities, like any other comparative assessment, has objective and subjective components. On the one hand, it is based on the use of objective statistical information reflecting the potential resource base of the territory. On the other hand, the decision-maker (the person performing the assessment or the investor), when assessing the investment potential of a municipality, is always guided by his own considerations, taking into account only those factors that are of high importance to him. In addition, the decision-maker performs such an assessment based on his own experience, knowledge and information available to him. As a result, each investor uses different economic and mathematical tools, different schemes, methods and models of multi-criteria optimization. The current situation creates a wide field for all kinds of manipulations of the ratings of the investment potential of municipalities, since, by varying various parameters of the evaluation model, it is possible to artificially both overestimate and underestimate the rank place of a particular territory. The scientific novelty of the conducted research consists in an attempt to formulate and justify the problems associated with the objectivity of assessments of the investment potential of municipalities. The solution of these problems is especially important when the decision-maker is not a private investor, but regional and municipal public authorities, whose activities are somehow connected with the development of strategies and measures aimed at activating investment processes in the region.

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