A FACTOR-INDEX APPROACH TO THE CLASSIFICATION AND RANKING OF DETERMINANTS OF INTEGRATION PROCESSES’ INFLUENCE ON THE INVESTMENT ACTIVITY OF ECONOMIC SECTORS

Abstract

This article develops a combined factor-index method for the classification and quantitative ranking of determinants through which integration processes influence the investment activity of economic sectors. The author substantiates the need to move from descriptive classifications of determinants, their division into stimulating and limiting factors, toward a formalised procedure for determining their comparative significance, which is critical for prioritising factors when shaping investment policy under conditions of European integration. The proposed approach combines factor-index analysis, used to systematise twelve determinants into four groups: institutional, economic, geopolitical, and structural; with the objective CRITIC criteria-weighting method and an index method for aggregating results into a single integral significance indicator. Unlike classical expert-based multi-criteria decision-making methods, in particular the analytic hierarchy process, the CRITIC method applied in this study derives weighting coefficients from the statistical properties of the data itself, the variance of and correlation between evaluation criteria, thereby removing the dependence of results on subjective expert judgement. The proposed methodology extends the scenario-based, multi-level approach to assessing the investment attractiveness of international green-energy business projects previously validated by the author, transferring the logic of objective multi-criteria evaluation from the project level to an aggregated, macro-level analysis of determinants. The article presents a step-by-step algorithm for applying the method, including criteria standardisation, correlation matrix calculation, computation of each criterion’s information content, and the resulting weighting coefficients. The results of applying the methodology to real statistical indicators for Ukraine, Poland, Romania, and Moldova show that, among the determinant groups considered, geopolitical factors carry the highest integral significance, followed by institutional factors, while structural and economic determinants rank third and fourth respectively. This is particularly relevant for infrastructure-type sectors, to which the energy sector belongs. The findings can be used to prioritise areas of state investment policy and to shape strategies for attracting foreign capital under conditions of Ukraine’s European integration.