Factors Influencing Investment Motivation in Pharmaceutical Industry of Balkh Province: An Empirical Analysis

Abstract

This study examines the factors influencing drug importers' motivation to invest in pharmaceutical industry of Balkh province. The findings reveal that economic and legal factors are the most potent determinants of investors' motivation, indicating that economic stability emerges as the main component of investment decisions. In addition, legal factors play a crucial role in shaping a favorable and predictable investment climate.

While political factors don't have a statistically significant impact on investors' motivation. Additionally, environmental factors show a limited effect on investment decisions. The analysis utilizes data collected through a structured questionnaire with a sample size of 100 respondents. Quantile regression analysis is employed in STATA to examine the association between key investment drivers and investors' motivation. Demographic analysis further reveals significant variation in investment motivation across age groups and educational levels. Higher levels of motivation observed among younger and older respondents, as well as among individuals with bachelor's and master's degrees. However, the findings indicate that investment experience doesn't significantly influence investors' motivation. Overall, the results suggest that investment motivation in the pharmaceutical industry is predominantly driven by economic conditions and the strength of legal frameworks. These findings highlight the importance of maintaining economic stability and strengthening institutional legal systems to enhance investors' motivation. The study provides empirical insights for policymakers seeking to promote domestic pharmaceutical production by addressing key institutional determinants and creating a more supportive investment environment.