Foreign Investment in the Agrarian Sector of Ukraine: Status, Development Aspects

Abstract

The article is aimed at evaluating the status of foreign direct investment in the Ukrainian economy and defining the impact of foreign investment on the development of the country’s agrarian sector. It is defined that by attracting foreign investment, the competitiveness of national products is increased, for which they must come in the form of not only material resources, but also new equipment, technologies, know-how, patents for conducting reconstruction and modernization of agriculture, etc. The carried out analysis shows that part of the agrarian sector in the investment portfolio of investors in Ukraine remains the smallest in comparison with trade, construction and industry. The study has identified that in order to improve the competitiveness of the national economy, it is necessary to improve the legal and organizational framework, preserve and improve the mechanisms for ensuring a favorable investment climate. At the same time, increasing the volume of foreign investment in the country’s economy will not solve the issue of increasing the level of economic development. Prospects for further research are to find and implement additional ways to revitalize investment processes in the agrarian sector, in face of many adverse factors, such as political instability (military actions in the east part of the country), the constant reform of the economic spheres, underdeveloped infrastructure, problems in the money sphere, high level of corruption, distrust in the judiciary system, and others.

Keywords

• investment
• foreign direct investment
• investment climate
• agriculture
• agrarian sector