Determinants and effects of Chinese foreign direct investment in the economy of Ukraine

Abstract

The article analyzes Chinese foreign direct investment in the economy of Ukraine at the present stage. China is as an important partner for Ukraine, not only in the field of foreign trade and investment but also for the implementation of the strategic vector of Ukraine’s economic development and its integration into the modern world economy. The empirical study shows that Chinese investors receive additional incentives to invest in Ukraine if there is a prior positive investment experience, increasing market potential and openness, and economic freedom. As Ukraine is generally perceived as a path to European markets, the signing of the Association Agreement with the EU is a positive factor. However, Chinese investors’ readiness to support corruption schemes in the Ukrainian economy arouses concern. Therefore, in order to enhance and improve the structure of investment flows from China, it is necessary to take a number of measures to overcome corruption.

Keywords

• china
• foreign trade
• foreign economic relations
• foreign direct investment
• ukraine