Investment Attractiveness Of Countries Research Articles

Issues of deeping the Uzbekistan economy integrated to the world market

The process of globalization in the world is so fast that, despite the contradictions between some countries, in some cases it forces them to work together; otherwise it can lead to situations such as lagging behind the world civilization. In the current situation, the development of relations between countries affects the development of the national economy of each country. Economic integration is observed at the level of national economies of entire countries, as well as at the level of enterprises, firms, companies, corporations. Economic integration is manifested in the expansion and deepening of technological ties in production, the joint use of resources, the pooling of capital and the creation of favorable conditions for each other in the process of economic activity, and the elimination of barriers. It is known that from the first years of independence, our country has begun to effectively implement the rapid development of reforms in foreign economic policy, and therefore created a regulatory framework in this area. In the context of globalization, the process of integration of countries in various fields is accelerating, and it serves as a factor in the development of republics. The current stage of human development is characterized by the rapid development of globalization processes. If we look at globalization from an economic point of view, it means the formation and development of a system of economic relations that covers the entire space of the world economy. The basis for this process is the mutual integration of countries. In particular, integration into the world economy plays an important role in attracting foreign investors to our country, as foreign economic activity increases the country's investment attractiveness.

Дослідження характеру та значимості впливу факторів ринку праці на інвестиційну привабливість країни

In recent years, there has been a significant structural impact of the so-called "digital" economy on the formation of FDI flows. The development of advanced technologies and robotics is accelerating. All this makes production more sophisticated, cheaper, and faster. The progressive labor market is a good basis for the successful development of enterprises in various industries. And investments make it possible for industries to be created, to develop, and to innovate. In addition, foreign direct investment is an important method of technology transfer that stimulates domestic public investment flows and fosters the development of human capital and institutions. The purpose of the article is to develop an economic and mathematical model of the dependence of a country's investment attractiveness on labor market factors. The influence of labor market factors on the investment attractiveness of Ukraine is analyzed and thoroughly substantiated, as well as the state of Ukraine's modern labor market, whose characteristic features, possible tendencies, and prospects are determined. The factors of the labor market include value-added per worker, medium and high-tech exports as a percentage of total exports, the unemployment rate, and the gross enrollment rate for higher education. Investment attractiveness is determined by the volume of foreign direct investment. When developing the model, the authors substantiate the comparability of the input data, their statistical significance, and the correlation of factor variables with foreign direct investment income. The Irwin method was used to check for anomalies of values, and recommendations were made for eliminating such data if they were found. The normality of distribution was verified using the Shapiro-Wilk test. The construction of a multivariate linear regression model was performed using the Stata 14 statistical package.

WAYS TO INCREASE THE INTERNATIONAL INVESTMENT ATTRACTIVENESS OF UKRAINE

The article describes the essence of investment, which is a key factor in economic development, highlights the current state of investment attractiveness of Ukraine. Attracting long-term international investments, their promotion is one of the priorities of economic policy. In the economy of Ukraine, there is a problem of lack of investment resources and lack of favorable conditions for their accumulation, imperfect assessment of the internal potential of national savings, the capacity of financial institutions for investment transformation of resources, features of investment regulation in changing economic relations. The general principles of investment policy and the main components of investment attractiveness are proposed, thanks to which a stable inflow of investments into the country is ensured. The course of modern political processes, goals and priorities for improving the investment climate in Ukraine, which negatively affect the international investment attractiveness, has been established. The dynamics of foreign direct investment in Ukraine, their structure by type of economic activity and the distribution of direct investment by investor countries are presented and analyzed. It was revealed that in 2019 the Ukrainian economy received investments from Cyprus, the Netherlands, Switzerland, Germany, and promising industries for international investment are agriculture, industry, energy, wholesale and retail trade, information technology and infrastructure, financial corporations. and insurance activities. A number of indices are proposed that determine the investment attractiveness of countries, investment confidence. The rating of investment attractiveness of Doing business-2020 is substantiated, where Ukraine has improved its positions compared to last year.

National economy investmentattr activeness: a bibliographican alysis

Introduction. The problem of country investment attractiveness, and approaches to its evaluation have been thoroughly debated over few last decades. Attracting of foreign direct investment (FDI) that is dedicated to creation of new jobs and added value in Ukraine, is relevant since independence declaration in 1991 and until now. It is believed, Ukrainian economy has unlimited investment potential, and reasonable high level of investment attractiveness, based on its geographical location and existing natural resources. Apparently, based on open access data, Ukraine has one of the worst in Europe FDI and GDP dynamic. Thus, the fundamental studies considering concept of “country investment potential” is highly relevant due to current macroeconomic condition in Ukraine. Within this work, authors researched recent studies of investment attractiveness evaluation around the world, and assumed their common principles.purpose of the research is to review most recent publications around the world on country investment potential evaluation topic.Results.The authors researched current relevant publications in journals which are indexed by international research databases. The analysis has shown that vast majority of current studies are connected to emerging market economies such as China and India. Among those papers, the most common approach to evaluate country’s investment attractiveness was usage of statistical methods. It allows considering a reasonably significant number of independent variables. Based on UNCTAD data [1], emerging economies show the best dynamic data related to GDP growth, and FDI inflows and outflows within last decade. According to abovementioned, the authors focused the research related to developing countries.Prospects. The Future researches could be long-term promising within the direction of country investment potential evaluation, taking into consideration socio-cultural determinants of specific countries in relevant statistical models.

Дослідження основних показників економічного розвитку України на ринку інвестицій

The article identifies the components of investment attractiveness of the country, reveals the importance of the main economic indicators of investment support for the development of the economy of Ukraine, in particular, analyzed the following indicators: index of investment attractiveness; indicator of ease of doing business; competitiveness index. The importance of attracting investments into the country's economy is determined, the obstacles to the implementation of economic investment projects are given, the prospects of development in the effective use of investments are considered, the dynamics of the index of investment attractiveness of Ukraine is analyzed. An analytical review of Ukraine's positions in the key ratings, which significantly affect the investment image of the state, was carried out. The article describes the level of investment attractiveness of Ukraine according to the methodology of the European Business Association. The main factors influencing the investment attractiveness are: internal political stability of the country, the established legal framework for entrepreneurial and investment activities, guaranteeing the inviolability of private property, the nature and rate of growth of the economy, the state of the stock market, financial and credit system, capacity and solvency of the internal market, natural resources, socio-cultural factors of the country. The key problems of improving the investment attractiveness are identified. Determines the relationship between the rating and the country's investment attractiveness. Conclusions have been made regarding the country's investment potential. The author's proposals on increasing the investment attractiveness of Ukraine are formulated.

Investment Attractiveness of the Economy of the World Countries in the Polystructural Space of Foreign Direct Investments

The article deals with the theoretical, methodological and practical aspects of ensuring a safety level the investment attractiveness of the world countries economy in the polystructural space of foreign direct investments. In the context of the implementation of investment policy and factors in the field of international investment, an optimization model of the investment attractiveness of the national economy has been developed. The aggregate factors of the investment attractiveness index, which characterize the investment climate, investment activity and the state of economic development of the country, are highlighted. A methodical approach is presented to determine the synergistic impact of foreign direct investment on the country's investment attractiveness indicator. The criteria of normalization of investment attractiveness of the economy of the country by indicators of macroeconomic, monetary and currency status, which are formalized by indicators-stimulators, destimulators and interaction of bilateral boundary constraints are proposed. The criteria of identification of risks and threats of safe and dangerous state of development of the economy of the countries by the methods of prognostic extrapolation of foreign direct investment are taken into account. A comparative assessment of global foreign direct investment flows and global GDP, the value of net sales of cross-border mergers and acquisitions was made. The structure of foreign direct investment by regions of the countries of the world is considered, taking into account their external reserves of investment potential. The indicators of investment attractiveness of the Ukrainian economy and its cooperation with EU countries in terms of the volume of inflow and direct investments are presented. The scenarios for the growth of foreign direct investments in the polystructural space of the world and developing countries are proposed.

Assessment of Country Investment Attractiveness Evaluation Approaches

Investment attractiveness of a country, and approaches to its evaluation have been thoroughly debated over few last decades. Initially, the key question concerned the reasons as to why large number of resource holders (financial funds, technologies, management systems etc.) would locate their assets, especially research and development projects, in other countries rather than remaining in their home economies. Increasing the quantity and quality of contacts with developed countries within investment process is crucially important for the development of Ukrainian economy. As follows from that point, the authors have identified features of approaches to investment attractiveness evaluation on a macroeconomic level analyzing latest works of scientists and researchers around the world. It is believed, that the most valuable type of investments for future GDP growth is funds from multinational corporations: they bring not only money, but technologies, and decision how make new businesses profitable. Thus, the fundamental consideration for countries competing for investments is the influencing and improvement of such factors through effective investment incentives policies. Within this work, we researched recent studies of investment attractiveness evaluation around the world, and assumed key points for improving and applying those approaches in Ukrainian economy. Within literature analysis the authors structured approaches to the evaluation based on the methods and subjects those approaches used. The most common methods are related to econometric analysis of statistical data that is collected and published by international institutions and rating agencies. Current analysis shows a tangible dependence between country investment attractiveness and the dynamics of FDI inflows. This dependence is not always straightforward, which is explained by influence of many other determinants within decision-making process. The authors suggest that involving independent experts from respective sectors of the economy could help to optimize the results of statistical data analysis. The expert survey provides the necessary correction coefficients which are to increase the accuracy and relevance of the investment attractiveness evaluation. The authors proposed a generalized approach to assessing the country investment attractiveness, taking into account international experience and features of the Ukrainian economy. Key words: investments, country investment attractiveness, foreign direct investment, investment attractiveness evaluation.

Investment security as a component of the state's economic security

The article is devoted to the study of the peculiarities of investment security of the country as a component of economic security, and the development of general recommendations for improving its level. In particular, the dynamics of foreign direct investment of Ukraine is studied and forecasted, the geographical structure of foreign direct investment of Ukraine is assessed, the most attractive types of economic activity in the economy of Ukraine are considered, the dynamics of main macroeconomic investment security indicators is analyzed, namely fixed capital investment investment growth to GDP growth rates, estimated dynamics of the country's investment attractiveness index and highlighted the factors that affect it, indicated what threats foreign investments may pose to national economic security and suggested ways to minimize them.

Analysis Of The Relevance Of Fiscal Decentralization In Ensuring Country Investment Attractiveness

Over the last three decades, fiscal decentralization reform has become widespread in the world as one of the most effective tools for ensuring the efficient functioning of the public and local finances, as it involves the transfer of powers from central to local or regional levels of government under the principle of subsidiarity and more effective allocation of budgetary funds. However, despite the fact that the reform of fiscal decentralization is mainly aimed at a qualitative transformation of the functioning of the budgetary system, it is crucial to take into account the consequences and interrelations of this process with other components of economic policy and their target parameters when developing the concept and algorithm for its implementation. Thus, in particular, many empirical studies confirm the impact of fiscal federalism on country economic growth. However, it is also essential to identify the impact of reform on the parameters of the country investment attractiveness. In the article, empirical studies on the impact of decentralization on the country’s and region’s investment attractiveness indicators were analyzed. The analysis results revealed that this issue has not become widespread in the scientific literature, and the existing research does not allow a clear conclusion about the nature of the impact of decentralization on the parameters of investment activity. The paper provides panel data regression analysis in order to identify the impact of revenue and (cost) expenditure decentralization on net inflow of foreign direct investment, gross capital formation and business network density for a sample of 12 unitary European countries (Czech Republic, Denmark, Estonia, France, Hungary, Italy, Latvia, Lithuania, Poland, Slovak Republic, Slovenia, and Ukraine) for 2008-2018. According to the modeling results, it was found that the level of expenditure decentralization has a positive effect on the net inflow of foreign direct investment and business network density, negative – on the volume of gross capital formation. In contrast, revenue decentralization has no statistically significant effect on any of the performance parameters. Keywords: expenditure (cost) decentralization, revenue decentralization, investment attractiveness, investment activity, regression analysis.

Assessment of Investment Attractiveness in European Countries by Artificial Neural Networks: What Competences are Needed to Make a Decision on Collective Well-Being?

A rich volume of literature has analysed country investment attractiveness in a wide range of contexts. The research has mostly focused on traditional economic concepts—economic, social, managerial, governmental, and geopolitical determinants—with a lack of focus on the smartness approach. Smartness is a social construct, which means that it has no objective presence but is “defined into existence”. It cannot be touched or measured based on uniform criteria but, rather, on the ones that are collectively agreed upon and stem from the nature of definition. Key determinants of smartness learning—intelligence, agility, networking, digital, sustainability, innovativeness and knowledgeability—serve as a platform for the deeper analysis of the research problem. In this article, we assessed country investment attractiveness through the economic subjects’ competences and environment empowering them to attract and maintain investments in the country. The country investment attractiveness was assessed by artificial intelligence (in particular, neural networks), which has found widespread application in the sciences and engineering but has remained rather limited in economics and confined to specific areas like counties’ investment attractiveness. The empirical research relies on the case of assessing investment attractiveness of 29 European countries by the use of 58 indicators and 31,958 observations of annual data of the 2000–2018 time period. The advantages and limitations of the use of artificial intelligence in assessing countries’ investment attractiveness proved the need for soft competences for work with artificial intelligence and decision-making based on the information gathered by such research. The creativity, intelligence, agility, networking, sustainability, social responsibility, innovativeness, digitality, learning, curiosity and being knowledge-driven are the competences that, together, are needed in all stages of economic analysis.

Modeling of investment attractiveness of countries using entropy analysis of regional stock markets

The current study focuses on the problem of determining investment attrаctiveness of countries by means of monitoring regional stock markets. The method of using the permutation entropy as a model of investment attractiveness estimation is suggested. We have calculated the permutation entropy for the time series of stock markets of countries for the period from 2005 to 2018. The countries with high, middle or low income in Europe, Central Asia, East Asia, the Pacific, and North America were selected for the study. The article presents the results of modeling and analysis of dynamic properties of regional stock markets using the permutation entropy. The behavior of the permutation entropy and stock markets is analyzed and conclusions about the possibility of rapid monitoring of the investment attractiveness of countries by classifying the states of the stock markets of these countries are drawn. Particular attention is paid to crisis periods. It has been shown that the permutation entropy rapidly decreases in a universal way in the pre-crisis period, which can serve as an indicator of the precursor for crisis phenomena. Determining the pre-crisis, actual crisis and post-crisis periods will allow the investor to make the right decision on time. The advantages of using the permutation entropy method as a tool for high-frequency monitoring of stock markets and modeling the investment attractiveness of countries are pointed out. The results of determining investment attractiveness in terms of the permutation entropy and ratings of the world countries, compiled by the world-wide rating agencies and literature, are compared.

Information and communication technologies as a development driver of regions investment attractiveness

The global course on the digital economy has determined the need to introduce information and communication technologies, in order to improve the business environment and increase regions and a country investment attractiveness. In this regard, the article contains the research, which shows a correlation between the development level of information and communication technologies in the countries of the world and investment indicators such as business conditions (Doing Business), Investment potential (Business Environmental Risk Intelligence) and Investment attractiveness (AT Kearney Foreign Direct Investment Confidence Index). As a result, the research represented a high degree of dependence of these indicators. A high level of information and communication technologies is not only a factor, which contribute investment attractiveness, but also directly affects the countries macroeconomic indicators. The studies in the article show that digitalization can optimize public spending, positively influence GDP, international trade indicators, and reduce unemployment. The information and communication technologies in the investment sphere received a special development through investment portals. For international practice, it is typical that the investment portal is an instrument of active communication and exchange of data with investors, which can affect the initial assessment of investment potential and the adoption of a decision on investment cooperation. The process of creating investment portals in Russian Federation was reflected in the form of one of the requirements of the Regional Investment Standard, which is one of the key projects of the Agency for Strategic Initiatives to create favorable conditions for doing business in the Russian regions. In recent years, there has been a qualitative improvement from nominal portals to full-fledged resources for increasing regions investment attractiveness. However, many regional portals still need a significant improvement in the information and communication components.

Факторы инвестиционной привлекательности регионов России

Purpose . National and international strategic capital is looking for favorable conditions for preservation and enhancement, respectively, institutional factors of investment attractiveness of Russia’s regions are crucial for ensuring sustained economic growth and prosperity. Gradually, there is a tendency to avoid formal financial assessments of investment projects in favor of a deeper institutional and economic analysis. In this regard, the role of information and analytical agencies specializing in determining the level of investment attractiveness of countries and regions is growing. The article analyzes the factors of the investment attractiveness of the regions of the Russian Federation in order to identify the reasons for the insufficiency of capital investments. The main goal, therefore, is to assess the dynamics of institutional factors of the investment attractiveness of Russian regions and develop recommendations for improving the situation. Methods . The ratings, developed by Expert RA as the most authoritative organization in this area of Russian jurisdiction, were taken as a basis for the analysis. When writing a work, we use data analysis methods, a logical method, an aggregation method. Results . As a result of the study, it was found that the problem under investigation is that in the Russian economy there is a significant gap in the regions in terms of investment activity, which contradicts the principle of the single economic space of the country. At the same time, for all components of investment risk, the ratings of the regions are fairly stable by the location of the subjects of the federation. A feature of the ratings, fixed for a long time of observations, is stability with the presence of explicit regions-leaders. This situation reflects the low dynamic mobility of the country’s investment space. Also traditional for both donor regions and recipient regions is the operation of previously created investment conditions for conducting economic activities. In this way, the efforts of the regional authorities to attract investors are often inadequate or ineffective. Conclusions . In the paper the possible reasons for the investment regional gap are analyzed on the basis of the analysis of institutional factors are determined. Recommendations are given on the areas of work in order to improve the investment climate in the regions of the Russian Federation from the point of view of institutionalization.

The application of statistical methods for the analysis of the status and trends of unemployment in the Central Federal district

The scientific article is devoted to the study of the traditional object of study of many social Sciences: managerial, sociological, legal, demography, political science, etc. the Problem of unemployment is known to be one of the main problems of economy of modern Russia. Unemployment rates are one of the main macroeconomic indicators. On the basis of their assessment of the prospects for economic growth, and identifies potential risks and investment attractiveness of countries. In this article, unemployment is seen as an object of statistical research on the subject of the possible application of complex statistical methods to assess its status and patterns of change over time in the regions of the Central Federal district (further - CFD).

Investment attractiveness of Central and Eastern European countries in the light of new locational advantages development

The aim of this work was to present the similarities between the components of competitiveness and investment attractiveness as two complementary categories, and to show the role of new locational advantages in determining the level of investment attractiveness of a country. Another objective of this paper was to provide a comparative analysis of Central and Eastern European countries in terms of their investment attractiveness. Thus this paper was organized as follows: the first part of the paper focused on a country’s competitiveness, and the traditional and new location advantages that determine its investment attractiveness in view of direct investment inflows in the light of M. Porter’s model of a diamond, an eclectic paradigm of J. H. Dunning and new growth theories. The second part presented the results of investment attractiveness analysis including selected countries of CEE in the years 1995-2013. Comparing the investment attractiveness of Central and Eastern European countries shows that a rather narrow group of countries attracts a greater amount of FDI, and many more countries have experienced a decline in FDI. Therefore, the research results allow for the conclusion that Central and Eastern Europe reduced its investment attractiveness over the past years. This means that the majority of Central and Eastern European countries are becoming less successful in attracting FDI, and therefore in shaping the environment in which foreign companies wish to conduct their business.

A critical view of Russia's IPO market: a sign of success or a reason for caution?

PurposeThe purpose of this article is to analyze the initial public offerings (IPOs) of Russian companies in the context of the country's investment attractiveness and the readiness of its companies to list on stock exchanges, domestically and/or internationally. The analysis takes a balanced approach. It recognizes the positive aspects from the development of Russia's stock markets and the launched and planned IPOs of Russian companies, but underscores reasons for caution in assessing this developing situation, emphasizing the need to maintain a critical perspective. The article is intended to help determine, in the sphere of IPOs at least, whether Russia is currently, or is on the road to becoming, as solid as a BRIC.Design/methodology/approachDrawing upon publicly available material from English‐ and Russian‐language sources, the authors discuss the development of the two Russian stock exchanges and analyze the progress that Russian companies have made in successfully completing IPOs on Russian and foreign stock exchanges. The paper also analyzes the barriers faced by Russian companies in launching IPOs and/or attracting investment, including global factors, country‐level conditions, and individual firm characteristics.FindingsThe results of the analysis indicate that the Russian stock exchanges have developed reasonably well over the two decades since perestroika. Correspondingly, a substantial number of Russian companies have mounted successful IPOs not only on the Russian stock exchanges but also on international exchanges, particularly the London Stock Exchange. Yet the number of successful IPOs relative to the number of planned IPOs has been much smaller than the global average. The latter finding is attributed to Russia's particular investment problems, which extend beyond global economic forces, specifically the country‐level and firm‐specific factors, both of which heighten the risk for investors.Originality/valueThe authors' review of the literature has uncovered no journal articles covering the circumstances surrounding the IPOs of Russian firms. Additionally, the available sources seldom provide a balanced view, much less a critical view of the IPO landscape in the context of Russia's overall circumstances, particularly risk. Thus, this article, with its critical but balanced perspective, allows for a relatively objective analysis for theorists as well as investors as they approach the topic of Russian company IPOs, domestically or internationally.