Investment climate - is the environment in which the investment processes occur. It is formed under the influence of an interconnected set of legislative and regulatory, organizational, economic, social, political and other factors that determine the conditions of investment activity in certain country, region, or city.

It should be noted that there is a wide range of definitions of the investment climate as well as its methods of calculations, especially in terms of profitability on invested capital.

The concept of "investment climate" is applicable primarily to a market economy, where the economic environment is not amenable to direct control. It is the most common criterion for the distribution of investment resources.

The investment climate is composed of a set of economic, social, political, legal and even cultural conditions for attraction of investments in a particular area of ​​the economy, in particular the company, city, region or country.

The concept of "investment climate" reflects the degree of favorability situation prevailing in a country (region branch) in respect of investments, which can be sent to the country (region, industry).

Investment Climate Assessment is based on an analysis of the factors determining the investment climate conducive to economic growth.

This usually applies the output parameters of the investment climate in the country (inflow and outflow of capital, inflation and interest rates, the share of savings in GDP), as well as the input parameters that determine the value of the output and characterize the potential for the development of investment and risk their implementation. They are:

natural resources and the state of the economy;
quality of the labor force;
the level of development and the availability of infrastructure;
political stability and predictability;
macroeconomic stability;
the quality of governance;
regulation of economic life;
level of compliance with the rule of law;
protection of property rights;
the quality of the tax system and the tax burden;
quality of the banking system, the availability of credit;
openness of the economy, the rules of trade with foreign countries;
administrative, technical, informational and other barriers to entry;
the level of monopoly in the economy.
Assessment of the investment climate varies in the range from favorable to unfavorable.

Considered favorable climate conducive to an active investor activity, stimulating the flow of capital.

Increases the risk of an unfavorable climate for investors, leading to capital flight and damping investment.

Factors influencing the investment climate, are classified as possible impacts on them by society to:

· Objective (natural and climatic conditions, equipped with energy and raw resources, geographic location, demographics, etc.);

· Subjective (related to the management of human activities).

The investment climate is closely linked with the investment policy. The investment policy is a set of organizational and economic impact of controls at the level of a country, region, city or enterprise aimed at creating optimal conditions for investments.

The investment climate is an object of the impact of investment policy. On the one hand, it defines the starting conditions for the development of investment policy, and on the other - it is the result.

The effectiveness of the investment policy is measured by the degree of change in the investment climate in a more favorable direction. In turn, the more favorable the investment climate affects the investment policy towards its improvement.

The investment policy of serving as a collection of different activities affect different (primarily subjective) components of the investment climate. It is actualized through the development and implementation of the strategy of investment activity.

Methods for assessing the investment climate is quite varied. They are based on various economic, political, and financial performance, in the aggregate which country, region or city is assigned an investment grade rating.

Rating is an important indicator for investors, most of whom are not able to conduct independent detailed research, especially in other countries, and are guided by the rating agencies. Therefore, improving the ranking is always associated with the influx of investment needed for economic