Publication Details
Abstract
The article explores the institutional, fiscal and economic determinants that shape the ability of a modernizing economy to attract foreign direct investment and transform external capital into sustainable sectoral development. Unlike traditional descriptions of investment inflows, the study focuses on the quality of the investment climate, the predictability of tax and customs regulation, the protection of investor rights, the availability of infrastructure, regional specialization and the capacity of public institutions to convert investment projects into production, employment and export outcomes. The article develops a comprehensive analytical framework for assessing foreign investment attraction through four interrelated dimensions: regulatory reliability, macroeconomic stability, sectoral absorptive capacity and performance-based investment governance. Special attention is given to the role of fiscal preferences, special economic zones, digital investor services and investment monitoring mechanisms. The article argues that investment attraction should be measured not only by the amount of capital inflow, but also by its contribution to technological renewal, value-added production, export diversification, regional development and the expansion of the taxable base. The proposed approach can be used to improve investment policy, strengthen investor confidence and increase the efficiency of state measures aimed at mobilizing foreign capital.