INVESTMENT ACTIVITY AND FINANCIAL PERFORMANCE AS DRIVERS OF SUSTAINABLE DEVELOPMENT IN THE MANUFACTURING SECTOR OF THE REPUBLIC OF MOLDOVA

Abstract

The article examines investment activity and financial performance as drivers of sustainable development in the manufacturing sector of the Republic of Moldova during 2019–2024. The relevance of the study is determined by the sector’s significant contribution to national industrial output, the need to renew enterprises’ production base, and the importance of strengthening their capacity to transform investment resources into sustainable economic, technological and socio-economic results. The aim of the study is to assess the relationship between investments in long-term assets, financial results, productivity, investment intensity and selected labour-related indicators in order to provide an integrated view of the sector’s contribution to sustainable development. The empirical basis consists of official statistical data from the National Bureau of Statistics of the Republic of Moldova. The methodology combines descriptive, structural, dynamic and comparative analysis with the calculation of relative efficiency indicators. The results show that the manufacturing sector maintains a dominant position in industrial output and concentrates a substantial share of long-term asset investments in industry. At the same time, investment dynamics are marked by volatility, while changes in investment are not fully synchronized with turnover and enterprises’ financial results. The analysis also reveals a decline in the average number of employees alongside growth in indicators calculated per employee, suggesting a more intensive use of labour and production resources. Although average gross monthly earnings increased, the sector’s relative position in terms of remuneration remains below the average levels recorded in both the total economy and industry. The findings indicate that the sustainable development of the manufacturing sector requires not only higher investment volumes, but also improvements in investment quality, technological returns, productivity growth, wage competitiveness and long-term financial sustainability. The study highlights the need to link investment policy with enterprise modernization and the broader objectives of sustainable development in the Republic of Moldova.