The Role of the Investment Climate in Solving the Problem of Human Resource Formation in the Tax System of the Republic of Azerbaijan

Abstract

The issue of creating a favorable tax environment in any country plays an important role in solving the problem of human resource development. Foreign investors are more interested in the stability and evolution of the tax system, which allows them to predict their activities in the long run, rather than tax benefits and privileges. The main purpose of the state investment policy is to ensure the renewal of fixed assets and the reconstruction of production through the application of scientific and technical achievements. The formation of a favorable investment climate, the effective use of attracted domestic and foreign investment resources in the priority areas of the national economy is one of the urgent problems of the Azerbaijani economy. Enterprises become increasingly aware that proper investment into human resources can have a significant impact on their performance, which of course also affects their competitiveness. The corporate culture exactly offers the greatest source of competitive advantage of enterprises. Continual adaptation to changing market conditions attracts businesses to invest their energy and finance to staff by improving their competencies.