Applying Vector Measure Construction Method (VMCM) to analyze change dynamics of investment attractiveness of the region

Abstract

Foreign investors’ decisions to choose a location for their business operations are driven by the investment attractivenessof a potential investment area. The term investment attractiveness is defined as the ability to make investors choose a particular place for investment. The inflow of FDI is desired by the local public administration because such investments can have a positive impact on the regional economy. This paper analyses the investment attractiveness of poviats of the West Pomeranian voivodship using the VMCM method, which permits ranking and classification of objects described by many characteristics, as well as presenting the dynamics of changes in the phenomenon under study. As a result, each poviat was assigned to one of four classes characterized by a particular value of the investment attractiveness measure. The poviats with the highest value of investment attractiveness measure were assigned to Class 1, while those measured the lowest were assigned to Class 4. The VMCM method was used in the study to present changes in investment attractiveness of individual West Pomeranian poviats of in the years 2015-2020. The results of the study revealed that poviats ranked both the highest and the lowest saw negative dynamics of investment attractiveness. In the top-ranked group of poviats, the most significant decline in their attractiveness to investors was noted in the city of Szczecin and the poviats: gryfiński and pyrzycki. The poviats in Class 4 whose attractiveness declined the most included the poviats: kołobrzeski, szczecinecki, wałecki and sławieński.