The system of the key indicators of formation of attractive investment climate of Ukraine and peculiarities of their management
-
DOIhttp://dx.doi.org/10.21511/ppm.18(1).2020.14
-
Article InfoVolume 18 2020, Issue #1, pp. 154-170
- Cited by
- 976 Views
-
457 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Ukraine, as a young country, is creating the investment market, which is the most important component of the national economy under the challenges and threats of the XXI century, instability and hybrid war. The study aims to analyze the investment climate and investment attractiveness of Ukraine and to identify key indicators through the political, legal, economic, social, and other conditions under which its investment market will become attractive. The dynamics investigation of foreign direct investments (FDI) inflows into Ukraine during 2002–2018, their structural analysis enabled to identify the periods of the most significant fluctuations and to state the reasons for such changes, to differentiate priority sectors of the Ukrainian economy being of financial interest to foreign investors, which is as a whole the basis of the attractive investment climate formation and management in the country.
The methods of financial management system, including the method of SWOT analysis, were applied to determine investment weaknesses, threats, strengths and opportunities, considering the peculiarities of their management.
As a consequence of the analysis on the reasons for the reduction of foreign investments in the country economy, it is proved that the proposed mechanism for improving the investment climate in the country will allow increasing FDI inflows and financing the general capital investments.
- Keywords
-
JEL Classification (Paper profile tab)E22, F21, G31
-
References41
-
Tables3
-
Figures7
-
- Figure 1. The foreign direct investment structure in Ukraine’s economy by countries of the world as of January 1, 2019, %
- Figure 2. The foreign direct investment structure in Ukraine’s economy by type of economic activity as of January 1, 2019, %
- Figure 3. Structure of capital investments in Ukraine by the financing sources in 2018, %
- Figure 4. The relationship between the strengths and opportunities to improve the country’s investment climate
- Figure 5. The relationship between the opportunities and weaknesses that affect the country’s investment climate
- Figure 6. The relationship between the threats and weaknesses that affect the country’s investment climate
- Figure 7. System of indicators of the country’s investment climate formation and management
-
- Table 1. Foreign direct investment in Ukraine*
- Table 2. The foreign direct investment structure in the Ukrainian economy by countries
- Table 3. SWOT analysis results of factors and conditions of the investment attractiveness formation in Ukraine
-
- Agénor, P.-R. (2009). Infrastructure Investment and Maintenance Expenditure: Optimal Allocation Rules in a Growing Economy. Journal of Public Economic Theory, 11(2), 233-250.
- Alexander, L., & Eberley, J. (2018). Investment Hollowing Out. IMF Economic Review, 66(1), 5-30.
- American Chamber of Commerce in Ukraine (ACC). (2019). Ukraine Country Profile.
- Aschauer, D. (1989). Public investment and productivity growth in the Group of Seven. Economic Perspectives, 13(5), 17-25.
- BDO. (2019). BDO International Business Compass 2019.
- Blakyta, G., Guliaieva, N., Vavdijchyk, I., Matusova, O., & Kasianova, A. (2018). Evaluation of investment environment security in Ukraine. Investment Management and Financial Innovations, 4, 320-331.
- Bolton, P., Wang, N., & Yang, J. (2017). Liquidity and Risk Management: Coordinating Investment and Compensation Policies (Meeting Papers No. 1703). Columbia University.
- Cash, T. F., Melnyk, S. E., & Hrabosky, J. I. (2004). The assessment of body image investment: An extensive revision of the appearance schemas inventory. International Journal of Eating Disorders, 35(3), 305-316.
- Economic Discussion Club. (2018). Pozytsiia Ukrainy v reitynhu krain svitu za indeksom hlobalnoi konkurentospromozhnosti 2017–2018 [Ukraine’s position in the Global Competitiveness Index 2017–2018]. (In Ukrainian).
- Foreign Direct Investment in Ukraine (2019). Official website of the Ministry of Finance of Ukraine.
- Gitman, L. J., & Jonck, M. D. (2012). Fundamentals of Investment (10th ed.). NY: McGraw-Hill Education.
- Grytsaienko, G. (2017). Investytsiina pryvablyvist Ukrainy [Investment attractiveness of Ukraine]. Agricultural and Resource Economics, 3(1), 80-93. (In Ukrainian).
- Gusarova, M. Yu. (2017). Impact of “hard” and “soft” factors of competitiveness on the investment attractiveness of the regions of the country. Economic Bulletin of Zaporizhzhia State Engineering Academy, 1(2), 49-52.
- Gutiérrez, G., & Philippon, T. (2017). Investment-less Growth: An Empirical Investigation. Brookings Papers on Economic Activity (NBER Working Paper No. 22897).
- Ip, K., & Jarry, J. L. (2008). Investment in body image for self-definition results in greater vulnerability to the thin media than does investment in appearance management. Body Image, 5(1), 59-69.
- Ishchuk, Y. (2018). Statistical monitoring of sustainable development National Statistics System in Ukraine: Current State, Problems, Prospects. Materials XIV International. Research Practice Conference on the occasion of Statistics Day (pp. 99-105).
- Kharlamova, G. (2014). Investment security of Industries: rating assessment (case of Ukraine). Procedia Economics and Finance, 16, 657-668.
- Legislation of Ukraine. (1996). Law of Ukraine “On the regime of foreign investment” No. 94/96-VR with amendments and additions.
- Legislation of Ukraine. (2016). Regulations on the National Investment Council (Decree No. 365/2016).
- Liga Biznes. (2018). Doing Business-2019: Ukraina podnyalas na 5 pozitsiy [Doing Business-2019: Ukraine has risen to 5 positions]. (In Russian).
- Long, C., Yang, J., & Zhang, J. (2015). Institutional Impact of Foreign Direct Investment in China. World Development, 66, 31-48.
- Major, K., & Szilagyi, K. (2009). Government investment in a small open economy. Acta Oeconomica, 59(2), 119-145.
- Maslak, O., & Talover, V. (2016). Kompleksna otsinka investytsiinoi pryvablyvosti krainy [Complex assessment of country’s attractiveness]. Ekonomichnyi forum – Economic Forum, 3, 51-59. (In Ukrainian).
- Ministry of Finance of Ukraine. (n.d.). Official website.
- Ministry of Foreign Affairs of Ukraine. (2019). Investment climate of Ukraine.
- Naveen, Kh., & Richmond, D. M. (2011). Can herding improve investment decisions? RAND Journal of Economics, 42(1), 150-174.
- Ozymchuk, O. (2018). Vplyv investytsii na ekonomichnyi rozvytok Ukrainy [Impact of Investment on Economic Development of Ukraine]. Hlobalni ta natsionalni problemy ekonomiky – Global and National Problems of Economy, 6, 224-227. (In Ukrainian).
- Palyvoda, K. (2013). Plan Marshalla yak pryklad dlia ukrainskoi ekonomiky [The Marshall Plan as an Example for the Ukrainian Economy]. Dzerkalo tyzhnia – Mirror of the Week. (In Ukrainian).
- Paranchuk, S., & Korbutyak, A. (2013). Problems investment support innovative development of the national economy and solutions. Econtechmod. An International Quarterly Journal, 2(4), 53-60.
- Rognlie, M., Shleifer, A., & Simsek, A. (2018). Investment Hangover and the Great Recession. American Economic Journal: Macroeconomics, 10(2), 113-153.
- Rzaev, G., & Vakulova, V. (2016). Metody otsinky investytsiinoi pryvablyvosti na rivni krainy ta perspektyvy yikh vykorystannia v ekonomichnomu analizi [Methods of assessing investment attractiveness at country level and prospects for their use in economic analysis]. Visnyk Khmelnytskoho natsionalnoho universytetu – Bulletin of Khmelnytsky National University, 3(1), 137-143. (In Ukrainian).
- Sineviciene, L., & Vasiliauskaite, A. (2011). Fiscal policy interactions with private investment. Engineering Economics, 23(3), 233-241.
- State Statistics Service of Ukraine. (2019). Capital investment in Ukraine.
- State Statistics Service of Ukraine. (n.d.). Official website.
- Tretiak, N. (2013). Factors that form investment climate in Ukraine. Financial space, 3, 165-170.
- Vertiakova, Yu., & Plotnikov, V. (2017). Problems of sustainable development worldwide and public policies for green economy. Economic Annals-XXI, 166(7-8), 4-10.
- World Intellectual Property Organization (WIPO). (2019). Global Innovation Index 2019: India Makes Major Gains as Switzerland, Sweden, U.S., Netherlands, U.K. Top Ranking; Trade Protectionism Poses Risks for Future Innovation (Press Releases PR/2019/834).
- Yamarik, S. (2011). State Level Capital and Investment: Updates and Implications. Contemporary Economic Policy, 31(1), 62-72.
- Yesscombe, E. (2015). Principles of Project Finance (408 p.). Moscow: Alpina Pablisher.
- Yevropeiska Pravda [European Truth]. (2017). Indeks investytsiinoi pryvablyvosti Ukrainy vpav vpershe za kilka rokiv [Ukraine’s investment attractiveness index fell for the first time for several years]. (In Ukrainian).
- Yu, F., Guo, Y., Le-Nguyen, K., Barnes, S. J., & Zhang, W. (2016). The impact of government subsidies and enterprises’ R&D investment: A panel data study from renewable energy in China. Energy Policy, 89, 106-113.