The Impact Of The Investment Climate On Increasing The Efficiency And Effectiveness Of The Libyan Financial Market

Abstract

The study aimed to address the role of the investment climate and the suitability of existing system procedures to stimulate the Libyan financial market and increase its effectiveness. It relied on the descriptive approach and the analytical approach in collecting and categorizing data and presenting the data. Using a questionnaire sheet, the study sought to test two main hypotheses: There is a positive impact of the investment climate on Efficiency of the Libyan financial market. Secondly, there is a positive impact of the investment climate on the effectiveness of the Libyan financial market. The study reached a number of results. Through the presentation of indicators of sovereign rating agencies and risk assessment, it was revealed that Libya’s rating is in the last ranks internationally, and in the Arab world in most cases, due to many political and legislative obstacles that hinder the creation of an encouraging and reassuring investment climate for all investors. As for the study hypotheses, the results of the analysis show that there is a negative impact of the investment climate on both the efficiency and effectiveness of the Libyan financial market, and this negates the validity of the two hypotheses of the study. Which indicates a low level of investment climate and its unsuitability for investors. Which reflects the instability of the political, security and economic conditions in the country in general.