METHODS OF SIMULATION OF INVESTMENT PROCESSES

Authors

DOI:

https://doi.org/10.31891/mdes/2021-2-9

Keywords:

methods, economic and mathematical modeling, investment processes, foreign investment

Abstract

The study of methods of modeling investment processes makes it possible to develop an objective and effective model as a public investment policy. To do this, you must determine the available modeling methods, their advantages and disadvantages. The aim of the study is to review approaches to the use of different methods of modeling investment processes at the regional and national levels, which deserve attention in terms of transferring them to the macro level in the context of foreign investment. Methods of modeling using a system of linear equations, dynamic models, models of optimization of investment flows, game theory, multicriteria optimization and other methods of modeling are considered. The study showed that a large number of modeling methods are used. At the same time, there is no generally accepted single method of modeling state and regional investment policy. The article considers the modeling methods used. The analysis of methods proved that when modeling state and regional investment policy it is expedient to use all the above methods depending on the goals of economic development. This approach makes it possible to study the influence of quantitative factors on the course of investment processes and take into account, including subjective factors influencing these processes, which is associated with the presence of a thinking entity in the economic activity of society. Modeling of investment processes is seen as a basis for management decisions, which in turn will improve state and regional investment policy and ensure the effectiveness of foreign investment processes in the country. The most advanced is the method of studying causation. It is advisable to take a comprehensive approach to the use of methods of economic and mathematical modeling, taking into account the subjectivity of investment decisions.

Published

2021-10-29

How to Cite

SHEVCHENKO Л. (2021). METHODS OF SIMULATION OF INVESTMENT PROCESSES. MODELING THE DEVELOPMENT OF THE ECONOMIC SYSTEMS, (2), 62–65. https://doi.org/10.31891/mdes/2021-2-9