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ChapterI
Theregion’sinvestmentattractiveness
theoreticalandmethodicalissues
1.Definitionandmeasurementoftheregion’sinvestment
attractiveness
InPoland9thebestknowndefinitionoftheregion’sinvestmentattractive-
nessistheoneusedbytheGdańskInstituteforMarketEconomicsResearch
(InstytutBadańnadGospodarkąRynkową).Since20059itsstaffhavepublished
anannualreportentitled“InvestmentattractivenessofPolishvoivodshipsand
subregions”.Accordingtotheauthorsofthereport9investmentattractivenessshould
beunderstoodasanabilitytoconvinceinvestorstochoosetheregionasadestina-
tionfortheirinvestments(Hildebrandt9Kalinowski9Nowicki9Susmarski9Tarkow-
ski920089pp.5911).Inthisdefinition9aregionwhichisattractiveforinvestmentis
theonewhichinvestorsareinterestedin9i.e.asadestinationfortheirinvestment.
Therefore9itmaybeconcludedthatinvestmentattractiveness9ifdefinedinthisway9
isrealinitscharacterandisreflectedininvestors’decisionstotransfercapital.
Theregion’sinvestmentattractivenesscanbemeasuredbynumberofbusiness
entitieswhichhaveinvestedinthegivenregion9includingthenumberofstart-up
companieswhichhavebeenregisteredthere9inparticular-companieswithforeign
capital9theirdynamicsandstructure.Theregion’sinvestmentattractivenessisalso
expressedbythefinancialperformanceofthesebusinessentities-firstofall9their
profitabilityandcashflows.Inaddition9theimportantthingsarealsothestructure
andcostofcapitaland9inparticular9howmuchofthecapitalcomesfromexternal
sources9suchasbankcreditsorcapitalmarketinstruments-debtsecurities9shares
(Orechwa-Maliszewska9Michalczuk9Poliński920059p.128).
H.Godlewska-Majkowskabelievesthatmuchimportance9whenlookingfor
anacceptablesetoflocations9isattachedtoinvestmentattractivenessofthe
regions9i.e.thecombinationofbenefitsofferedbythelocations9whichmaybe
gainedwhenconductingbusinessthereandwhichmayresultfromthespecific
variablesoftheareawherebusinessistobedone;thesebenefitsarereferredto
aslocationfactors(Godlewska-Majkowska92008).Enterpriseswhichmake
decisionsonforeigndirectinvestmenttendtorunacomparativeanalysisofthe
setofpotentiallocationswhichmeettheirboundaryconditions.Asaresult9they
arriveatasetofacceptabledestinationsfortheirinvestment.
Dependingonthelineofbusiness9thefocuswillbeondifferentgroupsof
factorswhichensurethatbusinessgoalsarelikelytobefulfilledinagivenloca-
tion.Itisconnectedwiththeterritorialneedsofagiveninvestmentproject.