A Methodical Approach to Assessing the Investment Attractiveness of the Railway Industry of Ukraine

Abstract

The article defines problems and prospects of an approach to assessing the investment attractiveness of the railway industry of Ukraine and its structural subdivisions. It is noted that modernization and overtaking pace of development of the railway industry of Ukraine is a necessary prerequisite for socioeconomic development of both the country in general and its regions in particular. To achieve the growth rates, as an objective necessity is considered the strategic management of the industry, allowing to better defining the prospects for sectoral potential, which is especially important in the context of the cyclical development of the global economic system. The key factor in the efficiency of strategic management of the railway industry is attracting investment from private investors, that is, the strategic basis for the consistent development of this type of transport consists in the implementation of large-scale investments. It is concluded that one of the further important conditions for improving the efficiency of the railway industry of Ukraine is the availability of an effective investment policy that would allow increasing the investment potential of the industry and increasing its investment attractiveness. The investment attractiveness of railways should be assessed taking into account the main factors of their production, financial and economic condition, the importance of each factor, and its compliance with a certain level determined by the investor. This makes it possible to determine the indicator both for railway transport in general and in the context of types of activities, businesses, and individual divisions of railways. An objective assessment of the investment attractiveness of the Ukrainian railway industry allows a potential investor to make an informed managerial decision on the feasibility of investing available funds in the development of the industry without a significant risk of losing them or not receiving the expected amount of investment income. Prospect for further research should be a quantitative assessment of individual indicators that can be used as parameters of the production, financial and economic status of railway transport in assessing its investment attractiveness and determining the degree of their importance.

Keywords

• railway transport
• industry
• assessment
• investment attractiveness
• factors.