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.