THE ROLE OF THE INVESTMENT ENVIRONMENT IN SHAPING INVESTMENT BEHAVIOR: A THEORETICAL PERSPECTIVE

This article explores the theoretical foundations of investment behavior with a particular focus on the role of the investment environment. Drawing on classical, Keynesian, neoclassical, and institutional economic theories, the study analyzes how macroeconomic stability, institutional quality, financial system development, and regulatory frameworks influence investment decisions. Special attention is given to the interaction between investment incentives, risk perception, and uncertainty within different investment environments. The paper systematizes key theoretical approaches and highlights the mechanisms through which the investment environment shapes private and public investment behavior. The findings contribute to a deeper theoretical understanding of investment dynamics and provide a conceptual basis for improving investment policy in developing and transition economies.