INVESTMENT ACTIVITY AND ITS ROLE IN ECONOMIC DEVELOPMENT

• Masharipov Sardorbek Farxadovich

  Independent researcher at Urgench State University Senior lecturer at the Department of Economics, Urgench Ranch Technological University

The role of investments in the economic development of countries is of significant importance. In the context of rapid changes in the global economy, increasing competition, and technological advancements, it is crucial to promote investments to ensure stable economic growth. Investment activity refers to the volume, diversification, and efficiency of investments in the economy. This activity contributes to the implementation of innovative projects and infrastructure development. Countries with high investment activity tend to be open to technological innovations, with stable economic growth rates.

There are many factors influencing investments, which can be categorized into internal and external factors. Key factors include macroeconomic stability, legal and institutional environment, tax policy, and the banking-financial system. These factors create a reliable environment for investors, facilitating the attraction of investments. According to the European Union's experience, factors such as the labor market, human capital development, gender equality, and inclusivity are of great importance.

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