Optimizing Investment for Inclusive and Sustainable Development

Abstract

Investment plays a fundamental role in driving economic growth, particularly in developing nations, by expanding production capacity, generating employment, and strengthening the economic foundation. Its effectiveness is shaped by internal factors such as political and economic stability, government policy, and institutional performance, as well as external dynamics including globalization and international markets. A deeper understanding of how these elements interact is essential to explain the link between investment and growth. This study explores the contribution of investment to economic development, identifies the main determinants of investment success, and evaluates the role of government and institutions in optimizing results. Adopting a Systematic Literature Review (SLR),with quality assessment based on the Critical Appraisal Skills Programme (CASP). The findings reveal that both domestic investment and Foreign Direct Investment (FDI) significantly contribute to GDP growth, technology transfer, and trade expansion. Stable governance, sound policies, and institutional quality are decisive, while globalization serves as an external driver.