Justification Strategic Priorities of Investment Development of the Republic of Armenia

Abstract

The Republic of Armenia requires investments for economic growth and development, including foreign direct investment due to the small capacity of the domestic market. The investment strategy must be consistent with the national development strategy and must be the resource base of the national strategy in terms of realizing the values and interests of the country's residents. The purpose of the study is to substantiate the strategic priorities of investment development of the Republic of Armenia and to identify priority development sectors that have competitive advantages and investment potential. The methodological basis of the research is the theory of strategy and methodology of strategizing by academician V. L. Kvint. According to the strategy methodology, an analysis of global investment and national trends was carried out, and successful international experience in attracting investments was studied. The experience of Israel is considered, which demonstrates a striking example of improving the investment attractiveness of the country thanks to an effective investment strategy. The strategic priorities of Israel's investment strategy are highlighted, some of which need to be implemented in the practice of attracting investments in the Republic of Armenia. To substantiate strategic priorities and highlight highly competitive industries, regulations governing the attraction of foreign direct investment in Armenia, the economic state of Armenia were studied, and an OTWS analysis of investment activity was conducted. Based on the results of a comprehensive analysis, the authors propose two groups of strategic priorities: primary strategic priorities and auxiliary priorities that enhance the significance and effectiveness of the former. The study shows that strategic industries with competitive advantages and investment potential for Armenia are the chemical and metallurgical industries, textile and clothing industries, tourism, pharmaceuticals, and agro-industry. An effective investment strategy for the Republic of Armenia is the basis for the country's further development.