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Investment Attractiveness Of Industries: Features And Trends

Author

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  • Svitlana Gutkevych

    (National University of Food Technologies, Ukraine)

Abstract

The article shows that the investment attractiveness of the branches of the economy depends on the sources of their investment. The purpose. The purpose of the article is to determine the features and trends of investment attractiveness of industries. Results. The volume of budget investments has been reduced, and the state is not the main executor of the investment process and can influence it through the system of taxes, loans, depreciation, privileges, and subsidies. It is determined on the basis of the analysis of sources of investment that self-financing is of paramount importance and the main source of investment is its own resources, first of all, profit. The basic functions that make a profit and the factors affecting it are determined. The considered functions directly result from the development of the enterprise and depend on the adoption of investment decisions. The role of the profit in the adoption of an investment decision depends on its type: short-term expected profit is a complete self-financing, which implies the rapid implementation of investments. Profit is the result of the effective operation of any investment object and the basis for making an investment decision. These functions can be considered as classical interdependent because they find content only in the conditions of their existence and contribute to the development of production. The innovation activity of the enterprise determines its potential market opportunities and attractiveness for the investor, and profit growth is ensured mainly due to: production of new products; development of new markets; growth of labour productivity; use of new raw materials. In economically developed countries, the investment process depends on the impact of market conditions, sources and size of investment financing. Attracting investments in any form contributes to the development of the economy. Value/originality. Profit is considered, firstly, as the profit received as a result of production and sales of products or services; and secondly, income in the form of interest or dividends received from the acquisition/investment of securities. In the course of the study, the motivational content of profit as the main source of investment is considered. International experience shows: the volume of foreign investment entering the country's economy determines its integration into the world community.

Suggested Citation

  • Svitlana Gutkevych, 2019. "Investment Attractiveness Of Industries: Features And Trends," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 5(3).
  • Handle: RePEc:bal:journl:2256-0742:2019:5:3:7
    DOI: 10.30525/2256-0742/2019-5-3-50-58
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    More about this item

    Keywords

    investment attractiveness; industries; profit; factors; development;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative

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