A General Analysis of Indicators Affecting the Investment Environment in the Republic of Armenia

Abstract

Generally, the conditions and factors that influence investment decisions, shape the investment environment. At the same time, a favorable investment environment is considered significant for economic growth and development. The article discusses the main factors affecting the investment environment of the Republic of Armenia, including political stability, macroeconomic stability, legal and regulatory frameworks, infrastructure, human capital and technological progress. Attracting foreign direct investment (FDI) usually promotes accelerated economic growth, job creation and technological advancement, especially in developing countries. FDI also greatly contributes to the more significant participation of the countries involved in global value chains, and ultimately to the smooth integration of these countries into the global economy. For each of the factors affecting the investment environment, a corresponding set of indicators was selected, including the years 2010-2021, and, in terms of availability, 2010-2022. The analysis of the dynamics of the above-mentioned indicators allowed us to estimate the sensitivity of the investment environment of Armenia to certain factors affecting it.Generally, the conditions and factors that influence investment decisions, shape the investment environment. At the same time, a favorable investment environment is considered significant for economic growth and development. The article discusses the main factors affecting the investment environment of the Republic of Armenia, including political stability, macroeconomic stability, legal and regulatory frameworks, infrastructure, human capital and technological progress. Attracting foreign direct investment (FDI) usually promotes accelerated economic growth, job creation and technological advancement, especially in developing countries. FDI also greatly contributes to the more significant participation of the countries involved in global value chains, and ultimately to the smooth integration of these countries into the global economy. For each of the factors affecting the investment environment, a corresponding set of indicators was selected, including the years 2010-2021, and, in terms of availability, 2010-2022. The analysis of the dynamics of the above-mentioned indicators allowed us to estimate the sensitivity of the investment environment of Armenia to certain factors affecting it.