EVALUATION OF THE INVESTMENT CLIMATE BASED ON FUZZY LOGIC
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Abstract
The subject of the study is the investment climate of the country, region and investment attractiveness of the enterprise. The article is aimed at substantiating a fuzzy logical model for assessing the investment climate of a country, region and investment attractiveness of an enterprise under the influence of three groups of factors: economic, organizational and psychological. The hypothesis of the study is that it is possible to define the investment climate (IC) and make decisions on foreign direct investment (FDI) based on data on indicators of influence factors, even if these indicators are not clearly quantified. The division of all influence factors into three groups: economic, organizational and psychological, and the definition of linguistic assessments for those factors that do not have a natural quantitative scale, allows taking into account the expert assessment of those aspects of the investment climate that are not assessed by statistical data and cannot be expressed quantitatively, but only with the help of descriptive words based on a sense of the situation. The developed model allows determining the state of the investment climate or attractiveness under the influence of a set of factors that the user determines, depending on the country, territory, enterprise and the availability of statistical and expert information. A review of previous studies shows that the development of models based on the theory of fuzzy logic, as opposed to regression analysis, allows not only to use a larger number of indicators, but also to take into account the so-called qualitative indicators that were previously not taken into account due to the impossibility of their quantitative measurement. The objective of the study is to build a model based on fuzzy modelling, which is the method of this research. The results of the study show that the use of the obtained model can help determine the investment climate based on the analysis of factors. Practical implications – obtaining a built-in model for assessing the investment climate for making investment decisions. Value/originality of the study: the developed model, unlike similar ones, is flexible, i.e. it can include any number of factors and can be used by specialists of different levels, from civil servants to entrepreneurs. The model also allows for the inclusion of any factors that the researcher deems necessary, as they can be assessed on any scale.
How to Cite
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fuzzy logic model, investment climate, investment attractiveness, foreign direct investment, factors of influence, fuzzy sets, management decision
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