THEORETICAL ASPECTS OF THE INVESTMENT ATTRACTIVENESS OF WASTE-FREE AGRICULTURAL PRODUCTION

Abstract

It has been established that the views of scientists on the concept of "investment attractiveness" differ significantly. Three main approaches are defined in the interpretation of this concept: based on the goals of the investor, based on a combination of various factors, based on the ratio of profitability and risk. It is proposed to distinguish between the terms "level of economic development" and "investment attractiveness". If the first determines the level of development of the object, a set of economic indicators, that is, determines the current state of the object of analysis, then the investment attractiveness should be supplemented with indicators characterizing the prospects for its further development and growth in profitability. It was established that it is necessary to distinguish between the concepts of "investment climate" and "investment attractiveness", considering the first to be broader and comprehensive, and that only taking into account the rating assessment of the investment climate, it is advisable for the investor to approach the assessment of the investment attractiveness of a specific object. It was determined that if we compare waste-free agricultural production with other branches of the economy, it is less efficient compared to most of them. Waste-free agricultural production is characterized by conservatism and inelasticity, inadequate response to market conditions and requirements. When the demand for the products of the domestic producer falls, due to its inertia, agriculture cannot quickly adapt to the changing situation and, due to its specific nature, cannot successfully participate in inter-branch competition in market conditions. Due to the non-equivalence in trade of agricultural production with other sectors of the economy, low investment attractiveness and purchasing power of the country's population and a number of other negative factors, waste-free agricultural production is unprofitable or, at best, a low-profit industry. In addition, natural and climatic conditions and the availability of social infrastructure also have a serious impact on the investment attractiveness of waste-free agricultural production. Investment attractiveness is a set of socio-economic and natural conditions that determine the investor's preference in choosing one or another investment object. Since one of the factors that reduce the investment attractiveness of waste-free agricultural production is the increased level of risks, that is why the assessment of the economic effect must be carried out taking into account the risk component. For this purpose, it is suggested to use a general indicator of the aggregate risk of the investment project. The use of this indicator will allow to determine the minimum possible economic effect that an investor can count on with a high probability of realization of a certain set of risks.