Economic essence of investments: relationship between the concepts

Investments are one of the fundamental factors of economic development. In order to form a sustainable development of the region, it is necessary to conduct active investment activities. Therefore, understanding investment processes in the region should be associated with identifying the main investment concepts and establishing a link between them, which leads to high economic results. The purpose of the study is to identify the basic investment categories and establish the relationship between them in order to understand the investment processes in the entity that determine its sustainable development. The research uses methods of bibliographic analysis, synthesis, systematic approach and a method of comparative analysis. As a result of the bibliographic analysis, the main characteristics of the investment concepts are identified and considered. The relationship between investment activities, investment risk and result has been revealed. The distinctive features of the investment climate and investment attractiveness are determined, and their main parameters are established as well. The importance of state investment policy as a way of influencing the investment processes is highlighted. Based on the study of the essence of the concepts, their relationship is established. The analysis has revealed that the investment risk and investment potential are accompanied by the process of the investment activities. Thus, the investment attractiveness is formed. The intensity of the investment activities characterises the investment activities, which affects the investment climate. Investment policy influences formation of a favourable investment climate, which, in turn, contributes to the investment attractiveness. Thus, the correlation of the investment concepts makes it possible to determine the essence of the investment processes in the region necessary for the formation of its sustainable development.

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