Categorical formulation of the concepts of «investment attractiveness» and «investment climate»

Abstract

Methods. To achieve the research goal, the following methods were applied: abstraction and logical analysis for examining the evolution of views on the essence of the concepts of «investment attractiveness» and «investment climate» and improving their categorical formulation; comparative analysis for comparing the essential characteristics of the categories of «investment attractiveness» and «investment climate», which allowed identifying their differences and interrelations; factor and functional analysis for isolating factors affecting investment attractiveness and establishing the interrelation between them. Results. Theoretical and methodological approaches to the study of the essence of the concepts «investment attractiveness» and «investment climate» have been considered, revealing a lack of a consistent understanding of these terms among scholars. Attention is focused on the necessity of viewing investment attractiveness as an integrated system, combining economic, political, and sociocultural groups of factors. It is demonstrated that such an approach allows for the analysis of the interrelations between different system components and determining their impact on the overall investment attractiveness of the national economy. Moreover, it enables a deeper understanding of the interaction and influence of various system components on each other, which facilitates the development of more effective investment attraction strategies. Novelty. The investment climate is defined as a complex category that covers a wide range of conditions – from political stability to economic attractiveness. The latter is presented as a dynamic, evolutionary process that reflects the country's ability to meet the needs and expectations of investors at various stages of their activity, and at the same time, as an indicator of the country's potential in the long term. Practical value. The research results can be applied to optimize economic policy aimed at attracting investments. They may also be useful for understanding cross-cultural differences in investment concepts and their application as an educational resource.