A comparative analysis of the role and structure of institutional factors in creating a congenial investment climate in countries with developed economies and in countries with transitive economies

The objective of the article is to compare the role and structure of institutional factors in creating a congenial investment climate in countries with developed economies and in countries with transitive economies. The status of a country's economy as developed or transitive has been determined using IMF classifications. The role of institutional factors in creating a congenial investment climate has been determined by a ranking of institutional factors in the system of factors facilitating a congenial investment climate. The ranking was calculated using a correlation coefficient modulus between the value of an investment climate and a factor's value in creating a congenial investment climate. The structure of institutional factors creating a congenial investment climate has been formed by ranking institutional factors needed to create a congenial investment climate using a correlation coefficient modulus between the value of an investment climate and the value of institutional factors in creating a congenial investment climate. The values for an investment climate have been determined based on the country's ranking in the World Bank's "Doing business" ratings. The values of factors contributing to a congenial investment climate correspond to the values of factors in the World Economic Forum's "Global Competitiveness Index" ratings. The values for institutional factors that form a congenial investment climate have been determined using the values of institutional factors in the World Bank's "Doing business" rating and in the World Economic Forum's rankings in the "Global Competitiveness Index". The figures for countries with developed economies show that institutions are ranked second among the factors needed to create a congenial investment climate. In countries with transitive economies, institutions are ranked third among the factors that create a congenial investment climate. Hence, in countries with developed economies, the role of institutional factors in creating a congenial investment climate is a bit higher than in countries with transitive economies. A comparison of the structure of institutional factors creating a congenial investment climate in countries with developed economies and in countries with transitive economies leads to the conclusion that ethical behaviour of companies and the diversity of state funds are significant factors for countries with developed economies. For countries with transitive economies, the significant factors are construction permits, the power of audits, and accounting standards. The article's scientific novelty is a method of comparing the role and structure of institutional factors in creating a congenial investment climate that can be implemented in other groups of countries. Moreover, it is the first time that the characteristics of the role and structure of institutional factors in creating a congenial investment climate have been revealed for countries with developed economies, as well as for countries with transitive economies.

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