Ukraine’s Policy in Developing the Domestic Investment Climate

Abstract

The purpose of the article is to study the main trends occurring in the investment climate of Ukraine, to analyze the main factors that have both positive and negative impact on the competitiveness and investment attractiveness of the domestic economy. As a result of the analysis, Ukraine’s position in the international ratings on investment attractiveness was assessed; the main directions of capital investment were identified, and investor countries were pointed out. Priority state projects are indicated, which are to increase the level of high-quality investment resources. At the same time, significant problems were identified that need to be addressed immediately in order to prevent a slow-down in creating an attractive investment climate for foreign and domestic capital. Systematization of a number of factors allowed to emphasize the need not only to attract to the economy financial resources from other countries, but also to intensify state policy that would promote the investment of Ukrainian funds through a system of incentives, and create the rule of law. Investment plays a central part in the development of a country’s economy; it is investment that makes it possible to implement the latest technologies or innovation; or to significantly expand production capacity of a business entity; or to solve a number of social problems. At the same time, the intensification of investment activity is impossible without promoting the accumulation of domestic financial resources, through a system that would stimulate Ukrainian people to save, and through institutional investors, to transfer capital to the real sector of the economy. Prospects for further research in this area are the following: to determine the degree of the state involvement in the development of a competitive economy; to find the ways to eliminate the imbalances and exogenous and endogenous factors that have a chilling effect on the investment process in Ukraine.

Keywords

• investment climate
• competitiveness
• investments
• foreign capital