Give confidence to the investor successfully sponsor projects

2/28/2016 0:00

BAGHDAD - Imad Emirate
Academic referred to the issue very important related to the concept of industrial investment, adding that investment is divided into three types, gross and net and substitution, net investment is equal to the total investment minus depreciation or investment substitution, and substitution to replace the so-called investment capital consumer. He explained Dr. Qusay al-Jabri, Dean of the Faculty of Administration and Economics at the University of Mustansiriya it: economists in industrial investment definition is divided. Some of them know that he (spending on new factories and equipment capital, machinery, etc.), while others know that he (component of GDP elements) .

Investment Departments

Jabri pointed out that the investment is divided into Thelalh sections are fixed project investment is the purchase of new plant and equipment by businesses, and residential investment, which is the purchase of new housing by families and owners of real estate, investment inventories, a rise in inventories of commodity to a company, and if that inventories dropped the investment is an investment Balkhozan negative. Jabri explained that there are multiple types of investment different from each other, a (real and financial investment, and domestic and foreign public and private investment), stressing that give confidence to the investor sponsor projects successfully. The concept of the investment climate, it is a modern concept arose in order to gather all affect investor and investment projects, so the concept of a large and complex to tangle its factors together, and mention of the most important statement in the definition of the investment climate, according to the World Bank (the investment climate reflects the many factors spatial which constitute investment opportunities and incentives for companies), or is the investment climate for (political, institutional and regulatory operates companies) environment. He said al-Jabri said: Therefore, we find that the concept of investment is the concept of a dynamic and complex, and another definition of the investment climate, we say: is all an influential factor in investor and outside his control, whether politically, economically or legally or socially.

Influential factors

Jabri explained that there are a lot of factors that affect the psychological investor and therefore his behavior and the most important of tension such as the subordination of themselves investors for (overconfidence and the impact of disposition), indicating that the tension arises for several reasons, including the lack of balance between the perception of one's what is needed in a given situation and its ability to meet those demands, as well as the inability to deal with the situation.
He explained: Reactions behavioral They reflect low cope and deal with the situation skills, tension could lead investors to avoid certain situations, moreover, the tension reduces investor confidence to succeed in their business in the future, and thus hinder the action at the present time as there is inertia or stalemate among these investors.

Investment Theories

Jabri pointed to the existence of several theories to invest explain the factors that affect it, and the classical theory theories that focused on that investment is influenced mainly the basic interest rate, explaining that there is an impact of the interest rate in the investment but does not represent a variable President influential in the investment, but the motivation to carry out the investment is expected profit for this process during the period of the continued existence of the new capital item, and therefore invest plenty of marginal capital stops, then came the accelerator investment theory to explain the basis for investment factor is the change in the output, either the theory of internal assets, the capital stock is desirable and then investment depends on profits any sense available to the increase of internal assets through profit Supreme lead to new investments, so the investment is renewed profits, and finally modern traditional theory to the effect that the capital stock desired is determined by the output and prices of capital services for the prices of output.