Volume 03 Issue 04-2023
9
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
I
SSUE
04
Pages:
09-18
SJIF
I
MPACT
FACTOR
(2021:
5.
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)
(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
ABSTRACT
The very fact that the concept of investments, as the main economic concepts of modernization of the economy, has
entered our lives today widely and quickly shows its essence and importance, necessity, and creates the need to reveal
it. This concept brings with it the discovery of many new concepts and economic knowledge, such as the concept of
investment projects, the implementation and financing of investment projects, their technical and economic
justification and expertise, project analysis, evaluation and monitoring of the effectiveness of projects, and their
discovery in our economic life today. making us realize how important it is.
KEYWORDS
investment, market, capital, capital investment, foreign investment, income.
INTRODUCTION
World experience shows that countries transitioning
to a market economy cannot successfully integrate
into the world economic community without the
formation of a favorable investment climate and the
active attraction of foreign investments to the national
economy.
Although "investment" is a relatively clear and widely
used term in economic literature and practice, on the
other hand, its versatility and contradictions are
Research Article
NATURE, TYPES AND FACTORS AFFECTING INVESTMENTS
Submission Date:
April 03, 2023,
Accepted Date:
April 08, 2023,
Published Date:
April 13, 2023
Crossref doi:
https://doi.org/10.37547/ijmef/Volume03Issue04-02
Rustambekova Feruza
Assistant Of The "Economics" Department, Namangan Institute Of Engineering Technology, Uzbekistan
Journal
Website:
https://theusajournals.
com/index.php/ijmef
Copyright:
Original
content from this work
may be used under the
terms of the creative
commons
attributes
4.0 licence.
Volume 03 Issue 04-2023
10
International Journal Of Management And Economics Fundamental
(ISSN
–
2771-2257)
VOLUME
03
I
SSUE
04
Pages:
09-18
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
characteristic not only of our country, but also of
foreign economic literature.
It is appropriate to start defining the essence of the
term "investment" by analyzing the definitions widely
used in the economic literature.
The concept of "investment" has a number of
meanings, which means a short investment. Or it is
understood as spending for the purpose of making a
profit, buying shares, bonds, buying and producing real
assets necessary for the production of goods, as well
as intellectual and other material assets, that is,
investments are any means that store the value of
money. , increases its value, and ensures a positive
return.
AGBogatirev, a Russian scientist who conducted
scientific research in the field of investment law, also
takes a position close to the above point of view. It is
the nature of production and the long-term nature of
costs that in most cases cause the authors to equate
investments and capital investments.
It should be noted that the European method allows
the term "investment" to be applied to long-term
investments in securities. But "such capital investment
can be an investment only if it represents the ability to
manage the corporation."
The American style also equates the terms
"Investment" and "capital investment" and gives
priority to investments in real estate in its economic
content.
Main part. When talking about the term investment, it
is appropriate to consider a number of definitions that
are widely used in the economic literature of the CIS
countries. For example, according to VV Kovalev, a
Russian economist-scientist, "Investments are long-
term investments in enterprises in various sectors of
the national economy (inside the country or abroad) .
" It seems that this definition does not reflect the
purpose and areas of investment. At the same time, in
this definition, investments are equated with long-
term capital investments.
Investments are the monetary form of expenditures
for the restoration and increase of fixed and working
capital, expansion of production capacity. It is
implemented in the form of cash, bank loans, shares
and other securities.
VA Lukinov gives a somewhat fuller and more precise
definition compared to the above definition:
"Investments are long-term financial investments of
state and private capital in various sectors of the
national economy in the country or abroad for the
purpose of profit . "
Although this definition indicates the purpose of
investment, it does not indicate its role in ensuring
social efficiency. Also, the investments are only
described as financial investments. However,
machines, technologies, licenses can also be
investments.
Russian economists A. Yu. Andrianov and SV
Valdaytsev give a similar definition of investments:
Volume 03 Issue 04-2023
11
International Journal Of Management And Economics Fundamental
(ISSN
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2771-2257)
VOLUME
03
I
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04
Pages:
09-18
SJIF
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FACTOR
(2021:
5.
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(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
"Investments are long-term financial investments of
state capital and private capital into the domestic or
foreign economy for the purpose of profit . " It is clear
that this definition does not include the composition of
investments, and here too the definition of
investments as financial investments has priority.
"Investments consist of a set of money, property and
intellectual assets that are included in the
implementation of programs and projects of various
production, commercial, social, scientific, cultural and
other fields in order to obtain profit (income) or to
achieve social or economic results. " O. Sinitsyn, a
Russian economist who conducted scientific research
in the field of investment analysis .
Although this definition is comprehensive, it cannot
fully and clearly reveal the nature of investments. It is
emphasized that investments consist of a complex of
money, property and intellectual assets that are used
to implement various programs and projects. Long-
term investments in stocks, technology acquisitions,
and other important types of investments are
neglected.
The following definition equates investments and
capital
investments:
"Investments
(capital
investments) are material, labor and monetary
resources aimed at ensuring expanded reproduction in
all sectors of the national economy consists of the sum
of costs" .
This definition covers the content of both real and
financial types of investments.
Investments can be divided into two types according
to the object of investment: financial investments and
real investments.
Financial investments are investments in financial
assets. Financial investments can take the form of
shares, bonds and other securities.
Investments in the form of long-term financial
investments mean funds invested in government
securities (bonds and other debt obligations),
securities of other enterprises and authorized capital,
as well as loan funds provided to domestic and foreign
enterprises. .
Real investments mean funds invested for the purpose
of purchasing non-financial assets of all types
(production and non-production). Separation of
investments into real and financial types is one of the
main signs in their classification. According to the
nature of participation in the investment process,
investments are divided into direct and indirect
investments.
Results oath Discussions . In direct investments, the
investor directly participates in the selection of the
investment object and the introduction of funds. Direct
investments are usually made by specially trained
investors who have accurate information about the
investment object, are familiar with the investment
mechanism, and have extensive experience in this
field.
Indirect investments are made through investment or
other financial intermediaries. According to the
Volume 03 Issue 04-2023
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International Journal Of Management And Economics Fundamental
(ISSN
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2771-2257)
VOLUME
03
I
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04
Pages:
09-18
SJIF
I
MPACT
FACTOR
(2021:
5.
705
)
(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
investment period, investments are divided into short-
term and long-term investments.
Short-term investments are capital investments for a
period not exceeding one year. For example, short-
term deposits, purchase of short-term savings
certificates, etc. Long-term investments are capital
funds spent on construction, expansion and purchase
of assets intended for long-term use, which are not
intended for production . According to the form of
ownership, investments are divided into the following
types: private, state, foreign and joint investments.
Private investment is the introduction of funds by
citizens and non-state economic entities of ownership.
State investments are investments made by central,
regional and local governments and management
bodies at the expense of budget, extra-budgetary
funds and debt funds, as well as by state enterprises at
the expense of their own and debt funds.
Foreign investments are a complex of all types of
property and intellectual assets that foreign investors
invest in business and other activities for the purpose
of earning income. Foreign legal entities and
individuals, states and international organizations can
participate as foreign investors. There are direct,
portfolio and other types of foreign investment.
Foreign direct investment is an important category of
international investment activity, which reflects the
desire of a business unit of one country to have a
sustainable impact on an enterprise in another
country. Sustained influence means the establishment
of a long-term relationship between the direct investor
and the specified enterprise, as well as the significant
role of the investor in the management of this
enterprise.
Foreign direct investments can be made in the form of
contributions to the charter capital, loans and other
forms. A direct investment enterprise is defined as a
corporate and non-corporate entity. In it, the investor
owns at least 10 percent of the common stock or
shareholders' votes (for corporate enterprises) or the
equivalent of such participation (for non-corporate
enterprises).
Therefore, a subsidiary or company in which a resident
investor has more than 50 percent of shares or votes in
a direct investment enterprise, an associated
enterprise with a direct foreign investor's share of 50
percent or less, wholly or partially includes a non-
corporate enterprise owned by the investor and
directly owned by the investor.
Portfolio foreign investments means investments in
shares and other securities. In addition to shares,
securities include bonds, bonds, promissory notes,
certificates of deposit, bank acceptances and debt
instruments.
In order to distinguish between direct and portfolio
investments, the following criterion is used in practice:
if the investor owns 10 percent or more of ordinary
shares, such investments are considered direct
investments.
Volume 03 Issue 04-2023
13
International Journal Of Management And Economics Fundamental
(ISSN
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VOLUME
03
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04
Pages:
09-18
SJIF
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FACTOR
(2021:
5.
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(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
Other foreign investments include types of
investments that do not include direct and portfolio
investments. For example, trade loans, as well as loans
from international financial organizations, bank
deposits, etc.
According to the regional symbol, investments are
domestic and
divided into foreign investments.
The above-mentioned classification reflects the most
important features of investments, and can be clarified
if necessary and expanded based on scientific,
research, and business goals . The level of investment
has a significant impact on the size of the gross
domestic product, many proportions of the national
economy depend on its growth rate. Investments will
improve the provision of expanded reproduction at the
country level.
The investment multiplier represents the impact of
investment on revenue growth. This method was
originally proposed by RF Kahn as a multiplier for the
use of funds, an idea based on an observation made by
this scientist. According to the results of this
observation, a certain amount of primary additional
use of funds causes secondary forms of their use as a
result of the gradual growth of distributed incomes
and related costs. This idea was later brought into a
system by Keynes and presented in the form of a
coefficient - investment multiplier.
Its essence is as follows: additional costs of capital
investments create a wave of income. The size of these
incomes is determined by the consumer's propensity
to consume.
The application of the investment multiplier makes it
possible to distinguish an important trend: the primary
investment of capital creates a tendency for the
growth of total income. The amount of income will be
higher than the amount of distribution related to
consumption expenses.
The principle of acceleration together with the concept
of multiplier helps to analyze the economic cycles in
detail, to reveal the role of capital investments in the
uneven movement of the economy. In this case, the
multiplier illuminates the activity scheme of
investment processes, while the principle of
acceleration defines its main conditions.
It is necessary to emphasize the actual aspects of these
theoretical views in describing the current situation in
the field of investment of Uzbekistan. indeed, in the
early period of economic reforms
One of the important reasons for the investment
deficit in Uzbekistan is, on the one hand, related to the
decrease in the volume of state investments, and on
the other hand, the domestic interest in the final
product, which negatively affected the provision of the
necessary conditions for the flow of private
investments. due to a sharp reduction in demand.
In order to improve the investment situation in the
country and to improve its management, it is necessary
to study the classification and structure of
investments. In order to increase the efficiency of
Volume 03 Issue 04-2023
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International Journal Of Management And Economics Fundamental
(ISSN
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2771-2257)
VOLUME
03
I
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04
Pages:
09-18
SJIF
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FACTOR
(2021:
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(2022:
5.
705
)
(2023:
7.
448
)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
investments, it is necessary to classify them
scientifically based classification of investments and
their use in all the works that will be carried out will
allow to take them into account, will allow to analyze
the level of their use from all sides. Currently, the
following classification of investments is common in
practice.
1. According to the sign of intended use of
future objects. It takes into account the placement of
investments by economic sectors. Accordingly, there
are investments placed in the direction of production
and in the direction of non-production.
2. Investments in new construction, expansion and
development of existing enterprises, and technical
restructuring according to the forms of use of capital
funds.
3. Centralized and decentralized according to financial
sources.
4. Investments spent on their production and
non-production according to the directions of use.
5. Investments are classified into the following
groups according to the objects to be placed:
- to buildings;
- devices;
- to machines;
- to material stocks;
- financial investments;
- to intangible investments.
The
most
effective
classification
of
investments is the classification presented in the work
of NA Balnka. According to it, investments are
classified as follows, that is, they are classified
according to the following signs:
1. According to the objects to be placed:
2. By nature of participation in investment:
3. By investment period:
3. According to forms of property:
According to the territorial sign
Local investments are divided into domestic facilities
and foreign enterprises and organizations.
According to the form of property, investments are
divided into:
A) mixed investments
B) foreign investments
C) state investments
D) private investments
Investments can be placed for long term or short term.
According to their participation in the investment
process, they are divided into curved and straight
investments. Investments are divided into real and
financial investments according to the objects to be
placed.
Through changes in the production structure of
investments, it can be shown that they are changing in
a positive or negative direction. A large part of the real
investment falls on new buildings, while the part spent
on reconstruction and re-equipment decreases
accordingly. This can have a negative impact on the
technical level of production and the efficiency of
investments.
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OCLC
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Publisher:
Oscar Publishing Services
Servi
In determining the level of use of investments and the
effectiveness of their impact on the economy, the
order of investment placement across economic
sectors plays an important role. The economic
efficiency of investments also depends on their
placement across the network and territory.
The network structure of investments means their
position in economic sectors. Spending them on
sectors
considered
important
for
economic
development will have a great effect.
Correct planning of the network structure of
investments contributes greatly to ensuring uniform
development of sectors and regions of the country's
economy, accelerating scientific and technical
progress, and effective development of the country's
economy. In turn, the state can influence the structure
of the investment network and contribute to changing
it in a progressive direction.
The structure of investments by type of property is
determined by their position in each type of property.
For example, what is the percentage of the total
amount of public investments, private investments,
mixed investments. Among economists, there is an
opinion that it is more effective to increase the share
of private investments. This will have a positive effect
on the positive use of investments and the level of
development of the country's economy.
The structure of investment financing sources is also of
great importance. Such a structure shows the
percentage of investments coming from what sources.
the distribution of this structure leads to an increase in
the amount and contribution of extra-budgetary funds.
The real structure of investments shows their
placement in groups of main production funds. Both of
these structures are of great importance in
determining and increasing economic efficiency in
enterprises.
Investments
Expansion
and
improvemen
t of
production
Creation
of
producti
on
infrastru
cture
Creating
stockpiles of
goods
Creating
a social
infrastru
cture
Training and
retraining of
employees
Science
and
scientific
service
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Publisher:
Oscar Publishing Services
Servi
Figure 1. Structure of investments
In many cases, the structure shown in Figure 3 will be
more efficient. According to this structure,
investments
are
allocated
to
expansion
or
improvement of production , i.e. technical re-
equipment, creation of production infrastructure,
creation of stockpiles, training and retraining of
employees at the enterprise, and provision of scientific
and scientific services. When allocating investments to
these sectors, it is necessary to allocate them to
current priorities. The more investments are attracted
to a sector, the greater the contribution of that sector
to the economy. Therefore, investments also perform
the function of creating a structure. If we look at real
investments, it includes the following stages: scientific
creations, it can be described in the following scheme
( Fig. 2) investment cycle consists of three stages:
4 . The structure of the investment cycle
1.
Preparation and grounding stage.
2.
Appearance and placement stage.
3.
Mastery stage.
The structure in Figure 4 mainly characterizes
investment dvrs that are being evaluated for new
views. If the existing enterprise is expanding,
equipping or reconstructing the technical floor, this
structure will be smaller. There will be no construction
and placement stage. The main stages are buying new
machine tools, installing a new one instead of the
working machine tool, using the machine tool and
reaching the specified production capacity.
Investment cycle
Preparation and
justification
Construction and
deployment
Appropriation
Scientific
research,
research
and
experience
Project
explorat
ion
Civil
engineerin
g training
course
Constructi
on stage
Getting
to work
Use of
workbe
nches
Acquiri
ng
techno
logical
proces
ses
Output to
project
capacity
Volume 03 Issue 04-2023
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International Journal Of Management And Economics Fundamental
(ISSN
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VOLUME
03
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04
Pages:
09-18
SJIF
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FACTOR
(2021:
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5.
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(2023:
7.
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)
OCLC
–
1121105677
Publisher:
Oscar Publishing Services
Servi
As a result of investing, the investor aims to make a
profit. Depending on the sources of investment, the
amount of income may also be different. At the same
time , incomes vary depending on the amount of
money spent on a certain area . The income from
productive investments will be greater than the
income from financial investments. Otherwise, the
investor does not invest in production, that is, he does
not take a risk. Instead, he makes a profit by spending
financial investment, buying valuable securities or
buying things like gold and silver. Because spending
money on production is associated with a certain level
of risk . Aiming for a fully guaranteed income in
production is a much more difficult task. And with
stocks, it's easier, that is, there is no excess movement,
and there is no excess risk. Therefore, the investment
spent on production should bring a large return.
CONCLUSION
In order to further improve the standard of living of the
population in the country and to ensure the future
development of the economy, investment activity
should be carried out effectively. Local, people,
enterprises, organizations, authorities and other
objects that can be investors should make effective
decisions on the placement of their funds . For this, it is
necessary to provide them with the necessary
information on a regular basis. They require that the
costs of information gathering, analysis and
preparation of the investment project be minimal. If
costs in this facility increase, the investment volume
may decrease. Creating facilities for investors,
providing benefits and supporting them will lead to an
increase in investment volume.
In the investment programs, the goals intended to be
implemented in a certain period, the stages of their
implementation and the value of the funds intended to
be spent are reflected by wells and sectors. Investment
programs are intended for the long term, in which
profit is expressed in terms of measures intended for
one year.
Also on technical modernization in our country
network programs plans have been developed, and
measures such as technical and technological
restructuring of the leading sectors of our economy,
transition to modern standards of production, and the
use of efficient and effective technologies are
envisaged.
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