Investment climate, valuation and its relationship to economic growth


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Investment productivity is the main objective of every investor and in the business and financial circles, the valuation of investment has become an important topic for discussion because of its relationship to economic growth. In view of this, we embarked on this research work on the investment climate, valuation and its relationship to economic growth. As much as investment is important, it is not just enough to embark in any business without a proper evaluation of the investment for a productive future return, valuation helps an investor to make a good investment decision, it tries predicting the future realization from investment and if the investment is worth embarking on. It is necessary that the investor or business owner is guided in the best investment to make, this is because valuation compares prices and anticipate future returns from every investment made. It determines the worth of a business, assets and companies (Modelling, n.d.). It also improves companies (Wise, 2002). Businesses needs to evaluate investment because a good investment is most likely going to lead to a growth in the economy (Office of Investor Education and Advocacy, 2011). In this article, we will be pointing out why investment is necessary, why investors need to valuate businesses before investing in it. What challenges encountered in investment, what formulas to use while valuating a business, best determinants of investment values and how investment contributes to economic growth.

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Sobre autores

Sergei Zainullin

«Peoples' Friendship University of Russia» (RUDN University)

Email: zaynullin_sb@rudn.university
Cand. Sci. (Econ.), Associate Professor, Faculty of Economics, Humanities/Social Science, Departments of International Business, International Relations (Master’s program) Moscow, Russian Federation

Chidimma Nwachukwu

«Peoples' Friendship University of Russia» (RUDN University)

Faculty of Economics, Humanities/Social Science, Departments of International Business, International Relations (Master’s program) Moscow, Russian Federation

Debesay Berhane

«Peoples' Friendship University of Russia» (RUDN University)

Faculty of Economics, Humanities/Social Science, Departments of International Business, International Relations (Master’s program) Moscow, Russian Federation

Terese Gundu

«Peoples' Friendship University of Russia» (RUDN University)

Faculty of Economics, Humanities/Social Science, Departments of International Business, International Relations (Master’s program) Moscow, Russian Federation

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