Abstract
This chapter discusses the wide range of created opportunities for stimulating, developing the business area and attracting investments in the region of ATU Gagauzia. The general idea of the chapter is the fact that only developing the economy at the expense of domestic and foreign investments can create jobs, increase budget revenues, and accordingly, develop social infrastructure and living standards in the ATU Gagauzia (Republic of Moldova). The analysis of indicators characterizing the development of entrepreneurial activity in the autonomy was conducted, the dynamics of indicators showing the improvement of the business and investment climate in the region was presented, and the creation of favorable conditions in terms of attracting investment in main sectors of the region's economy was presented. This chapter carries out the qualitative conclusions and presents information on the need to develop the important directions that will enable the achievement of the goals for improving investment clime and increasing of volume in the region ATU Gagauzia.
TopBackground
The research period will be for 2009-2017 in the development of the social-economic sector in ATU Gagauzia (Republic of Moldova) in order to determine the state, problems, potential and prospects for its development with the aim of increasing its competitiveness in a conditionally export-oriented economy
The objectives of the research paper are as follows:
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Study the current situation in the context of development attractiveness investment clime in ATU Gagauzia (Republic of Moldova);
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Identification of the main problems and prospects for the development of the socio-economic sector under investigation in the direction to increase the competitiveness of enterprises in the ATU Gagauzia on the domestic and foreign markets;
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Formulation of conclusions and recommendations for enterprises of the ATU Gagauzia, with a view to subsequent effective strategic development planning, capacity building of the investment policy elements for strengthening of competitive positions
Gagauzia’s current manufacturing industry builds on its strong industrial past. The Manufacturing industry of ATU Gagauzia is vibrant and growing, and consists of labor intensive enterprises. They are active in producing apparel, leather goods, furniture, construction materials, equipment and spare parts for agricultural machinery, cosmetics, pharmaceutical products, and refined petroleum. Moreover, several industrial skills are well-preserved. A total of 150 enterprises (out of which 40 large ones) represent the current industrial base of Gagauzia. In 2017, the industrial production registered a growth of 23.3% compared to 2016, amounting to 1 587,4 million MDL. The share of the manufacturing sector of ATU Gagauzia accounts for 3% out of its total economy and employs about 6000 people (The strategy of the region of development of the ATU Gagauzia for 2017-2020, 2017)
Why investments should be directed to the socio-economic sector of ATU Gagauzia? First of all its depend of the “Human Capital” (The Sectoral regional program Infrastructure Development regional and local roads of the region of the development of the ATU Gagauzia 2018-2025, Republic of Moldova, 2018):
Key Terms in this Chapter
Social Sphere: A combination of industries serving the basic social needs of the population: education of children and adults, medical support, cultural and sports leisure, socialization of youth, etc.
Human Capital: The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.
Investor: A person or organization that puts money into financial schemes, property, etc. with the expectation of achieving a profit.
Free Economic Zones: A class of special economic zone (SEZ) designated by the trade and commerce administrations of various countries ( Wikipedia, n.d. ).
Economic Sphere: A set of relations of people arising from the creation and movement of material goods.
ATU Gagauzia: Autonomous Territorial Unit of Gagauzia (Republic of Moldova).