American Journal of Business Management, Economics and Banking ISSN (E): 2832-8078 Volume 10, | March, 2023 P a g e | 144 www.americanjournal.org THEORETICAL ASPECTS OF INVESTMENT ATTRACTIVENESS Ochilov Bobur Bakhtiyor o‘g‘li Senior Teacher, Department “Valuation and Investments”, Tashkent Institute of Finance, Tashkent city, Uzbekistan. E-mail: Ochilov696@mail.ru A B S T R A C T K E Y W O R D S The article creating a positive investment climate should not be interpreted as a key process in the globalization of the economy, and as a result, the expansion of access to investment resources, which in turn will increase competition among investors. If we want to increase the volume of foreign investment, it is necessary to increase the investment potential of enterprises, regional conditions and conditions to a more acceptable and higher level than others (competitors), as well as to stimulate domestic (national) investment. We need to focus on ensuring that it is holistic. enterprise risk, investment potential of the enterprise, investment climate, innovation in enterprises, small business entities, investment process. INTRODUCTION Based on today’s economic factors, we can say that investments are a significant driver of the country’s economy. In the economic arsenal of each country, the main goal is to apply various financial mechanisms related to attracting foreign investments, to work in the position of a recipient and to create regional investment attractiveness. Also, enough reforms are being implemented in our country to actively attract investments. The more favorable the investment climate, the lower the entrepreneurial risk of the investor, and this will increase the influx of investors. Conversely, the more unfavorable the investment climate, the higher the risk. This will increase the cost to the recipient of the investment. The state of the investment environment is important not only for the investor but also for the investor [1]. A number of such cases require a series of measures to improve the existing mechanism for attracting foreign investment to the country’s economy and increase its efficiency in ensuring the competitiveness of national enterprises. In turn, the process of ensuring the competitiveness of national enterprises by attracting foreign investment in the country’s economy is multifactorial integration. Therefore, a methodological approach to indicators that assess the competitiveness of the national economy is required in this regard. The analysis of the socio-economic changes taking place in our country shows that the modernization of the economy and the role of active investment policy are very important in the achievements and successes. Accordingly, it is important to create an effective system of enterprises, to study the mailto:Ochilov696@mail.ru American Journal of Business Management, Economics and Banking Volume 10 March, 2023 P a g e | 145 www.americanjournal.org theoretical and methodological basis for assessing the attractiveness of their investment climate and potential. 2. Literature Review The investment attractiveness of enterprises depends on the country’s investment policy and the created investment climate. In particular, the investment climate is considered as a system of three elements: investment potential, investment risk and legal conditions [2]. Considering the factors influencing the formation of a favorable investment climate in the country/region, it should be noted that it is important for the country to be integrated in the world community in terms of investment attractiveness. The strategy of increasing the country’s investment prestige is important for attracting foreign direct investment [3]. Interpretation of “investment potential” as a set of investment resources, consisting of part of the accumulated capital, expressed in the form of investment demand in the investment market, which has the potential to become a real investment demand that meets the material, financial and intellectual needs of capital reproduction reaches [4]. The attractiveness of the investment climate, the economic development of each region depends on the potential of capital and labor resources, the level of their use. It is generally accepted that the economic potential of a region and its potential is determined by the production of vital goods through the efficient use of all the complex resources available there [5]. Determining the ratio between dividends and reinvestment in a country’s dividend policy, protecting the rights of minority shareholders, increasing share prices, and expanding business activities can increase a company’s investment attractiveness, which has a positive impact on the country’s investment attractiveness [6]. Regardless of the field in which joint-stock companies operate in the country, one of the important tasks is to place additional financial resources, including attracting foreign investment. One of the most modern ways to attract investment in joint-stock companies is to use the IPO mechanism [7]. Thus, the investment gives the company a competitive advantage and often serve as the most powerful means of growth. It is extremely important for investors is the analysis and evaluation of investment attractiveness of the enterprise as it gives an opportunity to minimize the risk of incorrect investment [8]. 3. Research Methodology The role of foreign investment in ensuring the competitiveness of enterprises, the classification of risks affecting the activities of the enterprise, as well as scientific proposals and practical recommendations for improvement through the methods of systematic analysis were formed. American Journal of Business Management, Economics and Banking Volume 10 March, 2023 P a g e | 146 www.americanjournal.org 4. Analysis and Discussion of Results. There are three major areas of investment, which are reflected in the figure below (Figure 1). Figure 1. Classification of the country’s investment sector [9] In the picture above, we can see that these directions are of great importance in the countries receiving investments. They are investment climate, investment attractiveness and investment potential. The segments included in the directions are the parts of the operative attraction of direct investments. There are also networks formed under the influence of segments, which contribute comprehensively to the increase of investments from the state and regional point of view. In addition, the most important thing is that foreign investors bring with them not only capital, but also the advanced knowledge and experience of their countries. This will allow the future economic growth of the country. The fact that the Republic of Uzbekistan is developing socio-economically and becoming one of the globally competitive countries is inextricably linked with the investment policy aimed at increasing the investment attractiveness of the country, the region and its economic sectors, as well as individual enterprises. Factors indicating the investment attractiveness of regions were grouped and brought into a single system. As the main groups, the points of view and scientific-practical views representing the socio- economic potential reflecting the complex indicators of the region are summarized and classified. In the picture below, we can see that the investment attraction potential of the Republic of Uzbekistan (by region), the number of contracts, and the investment funds involved are reflected (Figure 2). American Journal of Business Management, Economics and Banking Volume 10 March, 2023 P a g e | 147 www.americanjournal.org Figure 2. Promotion by share size ownership structure, bln. Sum (As of 31.03.2023) [10] As you can see in the picture above, the number of foreign shareholders in the stock market of Uzbekistan in 2022 reached 3321, of which 328 are legal entities and 2993 are individuals. It is obvious that as a result of foreign investment in the stock market of Uzbekistan, along with the direct increase in the volume of production of enterprises, the share price of the enterprise in the secondary market will increase significantly. The socio-economic development of the Republic of Uzbekistan and its becoming one of the most competitive countries in the world is closely linked with the investment policy of the country, the region and its economic sectors, as well as the investment attractiveness of individual enterprises. Table 1 Rating of innovative activities of developed countries of 2021 [11] N. Countries Innovation inputs Innovation outputs Knowledge creation Investment Production and export complexity 1. Germany 14 9 5 60 4 2. China 25 7 4 2 1 3. USA 3 4 3 1 2 4. Italy 33 25 7 9 15 5. India 57 45 13 32 18 The table above shows the ranking of Germany, China, the United States, Italy and India in terms of innovation potential, while the United States ranks 4th in terms of innovation results. The U.S. states are directly in 3rd place. America is also at the forefront of investment inflows and outflows. In terms American Journal of Business Management, Economics and Banking Volume 10 March, 2023 P a g e | 148 www.americanjournal.org of export potential, China ranks 1st, and 4th in terms of creating new knowledge, intangible assets and inventions. The second global issue is the disclosure of information about securities and their issuers. Today - this issue is one of the most complex issues in the stock market. Raising funds for economic development through the issuance and sale of shares is an important condition. Who are the founders of the joint- stock company, the specialty of the issuer, what products it produces, its working capital, income, profits, relationships with creditors? and finally, most importantly, the company must have the latest information on what dividends it has paid in previous years. It can be seen from this that realizing the importance of the role of foreign direct investments in increasing the investment attractiveness of our country, a number of activities are being carried out to attract these investments. Attracting foreign direct investments and their full utilization will serve to increase the employment and standard of living of the population in the country, improve the income of the population, and increase the investment attractiveness of our country in the international arena. 5. Conclusions and Suggestions Summarizing the above-mentioned analysis and considerations, it should be noted that in the context of increasing modernization processes, it is appropriate for the state’s medium- and long-term investment strategy to focus on solving the following tasks: 1. Development of models for effective use of economic resources and optimal use of economic resources based on the law of finite diminishment of capital resources in increasing regional wealth [12]; 2. To ensure the steady development of the regions and to develop comprehensive programs that serve their uniform development without large differences and take measures to implement them [13]; 3. Creating a favorable business environment that serves to organize joint projects based on high technologies and creating high added value [14]; 4. In order to maintain high and stable rates of economic growth, it is necessary to form a stable and competitive model of the country’s economy, in which most of the assets of the banking system are in the hands of private investors [15]; 5. In order to increase investment attractiveness and ensure rapid growth of investments in infrastructure, which is one of the main factors of sustainable economic growth, it is necessary to stimulate investment activity by developing public-private partnerships and project financing tools [16]; Based on the scientific proposals and recommendations presented above, their deep study, analysis and practical implementation will give results in the near future [17]. Also, by creating a favorable investment environment in the country, it has a positive effect on further increasing the investment attractiveness of the state [18]. 6. Literatura/Reference: 1. Elvira Sojli, Wing Wah Tham. “The Impact of Foreign Government Investments: Sovereign Wealth Fund Investments in the United States” In Institutional Investors in Global Capital Markets. Published online: 8 March 2015; 207-243. www.scopus.com 2. Takhumova Oksana V., Kasatkina Elena V., Maslihova Elena A, Alexey V.Yumashev, Maria V.Yumasheva. The main directions of increasing the investment attractiveness of the Russian regions http://www.scopus.com/ American Journal of Business Management, Economics and Banking Volume 10 March, 2023 P a g e | 149 www.americanjournal.org in the conditions of institutional transformations. // Revista ESPACIOS, Vol. 39 (Number 37) 2018. – P.12; 3. Smaglyukova T. M. general approaches to the formation of regional investment policy // Modern problems of science. - 2014. - No. 1. 4. Tumusov F.S. Investment potential of the region: theory, problems, practice. - M., “Economics”, 1999. 272-page. 5. Akerman Ye.N., Mixalchuk A. A., Trifanov A. Yu. Typology of regions as a tool for co-organization of regional development // Bulletin of the Tomsk State University. un-a. Economy. No. 331. 126–131- p. 6. S. Elmirzayev. Dividend Policy Analysis and Dividend Aristocrats in Developed Countries.// Scientific-electronic journal “International Finance and Accounting”, Nu.2, 2020. – P.11; https://uzjournals.edu.uz/interfinance 7. A. Shomirov. “The role of IPO mechanisms in attracting investments to joint stock companies: necessity and prospects”, “Interfinance”: Vol. 2021: Iss. 1, Article 19. https://uzjournals.edu.uz/interfinance/vol2021/iss1/19 8. Akhmetshin E. M. et al. Management of investment attractiveness of enterprises: Principles, methods, organization //International Journal of Applied Business and Economic Research. – 2017. – Т. 15. – №. 23. – С. 71-82. 9. Independently prepared by the author with the help of literature on the field of investment. 10. Prepared by the author on the basis of the official website of the Central Securities Depository – www.deponet.uz 11. The Global Innovation Index is based on the official website of the author – www.globalinnovationindex.org 12. Bakhtiyarovich O. B. Investment Activities and Performance of Gigamon Companies Around the World //Czech Journal of Multidisciplinary Innovations. – 2022. – Т. 6. – С. 1-6. 13. Butaev J. Activities of large issues in the economy of Uzbekistan: Analysis and results //ACADEMICIA: An International Multidisciplinary Research Journal. – 2021. – Т. 11. – №. 6. – С. 757-766. 14. Inatillo o‘g‘li B. J., Fatikhovna G. U. ACTUAL ANALYSIS OF UZBEKISTAN’S STOCK MARKET: PROBLEM, SOLUTION AND SUGGESTIONS //American Journal of Business Management, Economics and Banking. – 2023. – Т. 10. – С. 53-59. 15. Inatillo o‘g‘li B. J. ACTUAL ANALYSIS OF UZBEKISTAN’S STOCK MARKET: PROBLEM, SOLUTION AND SUGGESTIONS //American Journal of Business Management, Economics and Banking. – 2023. – Т. 10. – С. 53-59. 16. Inatillo o‘g‘li B. J. ACTUAL ANALYSIS OF UZBEKISTAN’S STOCK MARKET: PROBLEM, SOLUTION AND SUGGESTIONS //American Journal of Business Management, Economics and Banking. – 2023. – Т. 10. – С. 53-59. 17. Inatillo o‘g‘li B. J., Fatikhovna G. U. ACTUAL ANALYSIS OF UZBEKISTAN’S STOCK MARKET: PROBLEM, SOLUTION AND SUGGESTIONS //American Journal of Business Management, Economics and Banking. – 2023. – Т. 10. – С. 53-59. 18. Butaev J., Radjabov U. The tax system as a structural link of the financial system //ACADEMICIA: An International Multidisciplinary Research Journal. – 2021. – Т. 11. – №. 4. – С. 1770-1780. https://uzjournals.edu.uz/interfinance https://uzjournals.edu.uz/interfinance/vol2021/iss1/19 http://www.deponet.uz/ http://www.globalinnovationindex.org/