Investment climate, its evaluation

click fraud protection

urgent problem for any country is the investment climate, as well as the ratio between foreign and domestic investment.If domestic ensure stable economic growth, while foreign did not seem necessary.Looking on the other hand, the state of their investments may not be enough, then there is a need for capital inflows of foreign investors.

investors to come into the country and began to invest in the economy, should be a favorable investment climate, which is determined by the risk derived from the investment of funds in the economy of the state and a particular region, as well as an efficient use of capital.

Russia has many opportunities to attract foreign capital: vast natural resources, unlimited potential of personnel, major scientific and technical base, low competition of Russian business, the prospect of economic development.

But there are factors that hinder the inflow of capital into the country: poor infrastructure of communication and transport, outdated production capacity, lagging the level of development of agriculture, the high corruption.This, of course, lowers the investment climate in the state.

All this by the end of the 90s resulted in 0.5% of foreign investment.

investment climate could be favorable and unfavorable.

favorable assumes stable operation of investors, capital inflows into the country.A stable legal framework and capital protection of depositors.

Adverse risky for the investor.There is a flight of capital, investment activity decreased steadily.Falling economy.

investment climate in the region and the country takes into account all the factors for attracting funds to the area.They exist two types:

Type One: Indicators Macroeconomic

do a full analysis of the GDP of the entire country, a budget allocation goes to a particular region, economic policy in the country, as far as the stability of national currency, the volume of production, as protected by the rights of investors and capital, the legal framework for investment, as developed stock market.

Type Two: Indicators multifactorial

These include the factor of bioclimatic potential of what resources there are in the region, the availability of energy potential and human resources, as the infrastructure and scientific and technical production, the environmental situation in the region.Factor policy is considered too.Consider the level of living of the population in the area, the level of wages.An important, largely determines the link is the financial climate, the professionalism of the regional administration, the ratio of foreign capital, the rights and freedoms of the individual, the state of the state and local budget.

However, investors do not consider the performance of only one investment climate, it is just a component of that is accounted for before you enter the capital in the region or country.The following is a specific approach to the sector for investment.Here are considered other options.

investment climate and its components is very versatile, and in each particular case are taken into account the different parameters.

Also, the rating is important for investors.Many can not do an analysis and in-depth research, in particular this applies to other countries.For them, the rating agencies give their assessment, so by increasing the rating of the country is always going investment.