STUDIES OF INVESTMENT ATTRACTIVENESS IN INTERNATIONAL RELATIONS IN AN EXAMPLE OF COUNTRIES WITH ECONOMIES IN TRANSITION

Abstract

The introduction reveals the relevance of the research topic and formulates the scientific problem. The main publications and studies are analyzed. The goal was formulated and the main research tasks of the work were set. The methods of research of the system of international relations and one of the phenomena of international economic relations - investment attractiveness - are described. The main part of the article presents the research and description of the category of private foreign investments and their role and significance for the countries with transition economies. The international practice has repeatedly proved the expediency of using direct foreign investments as one of the key elements of economic and socio-political development of a state. Resident countries that have received funding from foreign companies, international institutional institutions or countries have accumulated these assets in order to further improve their production capacities, develop their scientific and technological base, repay their foreign debt, and so on. These actions have had a direct or indirect positive impact on the welfare of countries. Particular attention is paid to the problem of interdependence of economic growth of national economy and foreign direct investment, has not lost its relevance, especially for countries with economies in transition. The investment attractiveness of the latter is fundamental in setting the agenda. Decision-makers on investment of this or that project have their own systems of coordinates. However, in the context of international relations the main criteria include institutional, economic, financial and socio-political factors. For wider disclosure and research of the problem, a situation was simulated in which one of the institutional investors, the European Bank for Reconstruction and Development, selected one of the three investment-attractive countries with economies in transition using a multi-criteria comparative analysis. The solution was found through the use of mathematical evaluation methods and applications. The criteria were compared both qualitatively and quantitatively, and therefore, the decision-maker in this case was entrusted with his or her own subjective vision of the situation, determining their role and significance, if knowledge and experience were available, thus resulting in an optimal solution in the field under study. It is also important that first calculations were made on the first category of data - macroeconomic indicators of countries, and then on the second category - indicators of economic freedom. Output results from the first two calculations differed and did not provide a unanimous decision. The optimal variant was found only after unification of both systems. In conclusion, the authors analyze the advantages and disadvantages of the method used and provide recommendations for the country that received the lowest value. Understanding and consistently addressing the negative factors that reduce investment attractiveness will strengthen and improve the international economic situation. Thus, long-term investment in national economies is a form of international policy implementation. Investment is a two-way process, and therefore, the resident country should also take into account the level of its own investment attractiveness, maximizing its advantages and minimizing negative ones.