Investment and economic advancement

Abstract

Investments are a fundamental factor in renewing and expanding production resources, as well as in ensuring economic growth. The primary goal of this study is to analyze the role of investments in national economic development, particularly their impact on GDP, employment, infrastructure, and overall economic stability. The research aims to highlight the importance of foreign direct investment (FDI) and domestic investments in shaping long-term economic growth, particularly in developing economies and Bulgaria’s specific context. The study is based on a review of existing economic theories and empirical data on investment dynamics. It utilizes macroeconomic indicators such as GDP, FDI inflows, national income, and foreign trade statistics. Comparative analysis is conducted to evaluate investment trends at both international and national levels. The research includes statistical data from Eurostat, the World Bank, and national institutions such as the National Statistical Institute of Bulgaria and the Bulgarian National Bank. Additionally, the study examines the role of investment policies, taxation incentives, and regulatory frameworks in fostering a favorable investment environment. Case studies from developing countries are used to demonstrate the correlation between investment inflows and economic growth. The methodology also includes trend analysis of investment activity before and after major economic disruptions, such as the COVID-19 pandemic, to understand their influence on national economies.