INTEGRATED INVESTMENT CLIMATE AS A POLICY TOOL FOR INCREASING THE POTENTIAL FOR EXPANDING THE SCALE OF ECONOMIC ACTIVITY ON THE GLOBAL MARKET

Abstract

In the context of constant globalization changes and the need for adaptation, the ability of the national economy to respond promptly to external challenges and shocks is of great importance, in particular due to the established integrated investment climate. The article substantiates the importance of the formation of a favorable investment climate as a source of resource support for economic growth and increasing the potential for expanding the scale of economic activity in the global market. It is shown that the investment climate acts not only as a factor in attracting financial resources, but also as a complex tool that determines the efficiency of investment use, stimulates technological innovations, increases the competitiveness of the national economy and promotes integration into the world economic system. It is emphasized that the fundamental theoretical principles and a clear definition of key concepts of investment activity are a necessary basis for the formation of a strategic investment policy and the further development of scientific research in this area. The key prerequisites for the formation of the investment climate, its main components and functional impacts on the economy are systematized. Thanks to the formation of the investment climate, the prerequisites are created for the effective integration of the national economy into global production and financial chains, the attraction of foreign direct investment, technologies and know-how, and ensuring access to new sales markets. It is determined that the stability of institutions, effective public administration, transparent regulatory mechanisms and political security create the foundation for investor confidence and predictability of investment policy.It is substantiated that macroeconomic stability, developed infrastructure, competitive labor market and financial system provide favorable conditions for investment activities. It is emphasized that integration into the world economy and support for investment potential contribute to increasing the country’s global competitiveness, expanding access to international markets and attracting foreign capital. It has been scientifically proven that a favorable regulatory and legal environment, provided by transparent legislation and an independent judiciary, reduces transaction costs and stimulates the development of small and medium-sized businesses.