The Reinvestment of Incomes as the Main Component of Foreign Direct Investment into Industry of Ukraine

Abstract

The article is aimed at studying the status and dynamics of the FDI flows into the industry of Ukraine for the period of 2015–2019, taking into account the reinvested income of foreign investors. The methodological approaches to statistical account of foreign direct investments that meet international standards and recommendations of the International Monetary Fund are considered. The essence and content of the reinvested incomes as an economic category and a key component of foreign direct investment are defined. The analysis of statistical reports on the structure and dynamics of foreign direct investment into the industrial sector of Ukraine for 2005–2015 is analyzed. It is found that the sectoral distribution of investment resources is focused on the low-tech branches of the raw-material extractive industry and does not meet the needs of structural and technological modernization of production. The author defines the industries with a significant seizures of foreign capital in the form of reinvested income, which indicates low efficiency of doing business and requires special attention. Stopping the outflow of funds from the major industries of Ukraine and attracting new real investors is possible through the improvement of the State policy aimed at normalizing the investment climate, renewing the industrial economy and promoting innovative transformations. Prospects for further research in this direction are determining the relationship between the reinvested incomes and financial results of enterprises in the industrial sectors of Ukraine.

Keywords

• reinvestment of incomes
• direct foreign investments
• industry of ukraine
• attracting foreign investment