IMPROVING MECHANISMS FOR ATTRACTING FOREIGN INVESTMENTS TO FIXED CAPITAL AND THEIR FINANCING

Abstract

In today’s global economy, foreign direct investment (FDI) holds strategic importance for national economies. Investments directed toward fixed capital such as infrastructure, energy, transport, production capacities, and modernization projects play a crucial role in enhancing a country’s competitiveness, achieving technological renewal, and ensuring long-term sustainable development. Global experience clearly confirms this trend: many developing countries have expanded their fixed capital and stimulated economic growth by attracting both domestic and foreign private capital.
However, attracting foreign investment alone is not sufficient. Efficient financing and conversion of these investments into fixed capital require a range of mechanisms, institutional reliability, a robust legal framework, and a stable investment climate. Key components in this process include investment agreements, the users and sectors of the investment, sources of financing, and risk management. In other words, the process of transforming foreign investments into fixed capital projects should integrate not only the “attraction” phase but also the “financing,” “implementation,” and “management of outcomes” phases.