Analysis of Investment Effectiveness in the Wood Processing Industry of the Czech Republic

Investment is an important factor affecting the growth performance of the sector. Effective investments can improve the efficiency of production resources using, and make an intensive economic growth of the sector as well as to increase the production capacity of enterprises. The aim of the paper is to present indicators designed to measure the effectiveness of investments at the sectorial level and assess the efficiency of investment in the wood processing industry of the Czech Republic for a period of ten years. Measuring the effectiveness of investment is different at the enterprise level and at the sector level. On the basis of an analysis of available scientific literature, a system of indicators measuring investment effectiveness at the sector level was set up. Input data for the analysis was obtained from database of the Czech Statistics Office with annual data on selected economic indicators in wood processing industry for a period of years 2002 - 2011. Data was used in calculation of individual indicators for evaluating investment effectiveness. Results of analysis showed an insufficient efficiency of investment in the Czech wood processing industry. The effects of the implemented investments don’t occur sufficiently in the most important performance indicators.