Investment Climate in Ukraine: Status and Mechanisms of Regulation

Rzhepishevskaya Elena
PhD student Institute of Law and Human Rights National Academy of Sciences of the Republic of Azerbaijan , E-mail:elenaodessa1998@gmail.com

Baldzhy Maryna
Doctor of Economics, Professor, Professor of the Department of Economics, Law and Business Management, Odessa National Economic University, E-mail:baldgi@ukr.net

Cite this article:

Rzhepishevskaya, Е., Baldzhy, М. (2019) Investment Climate in Ukraine: Status and Mechanisms of Regulation. Ed.: М.D. Baldzhy (ed.-in-ch.) and others [Systema pensiinoho zabezpechennia Ukrainy ta yevrointehratsiini protsesy; za red.: М. D. Baldzhy (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 3(266), pp. 139-154.

Abstract

Experience in many countries of the world shows the expediency of attracting investment. For Ukraine, as well as for other countries, there are a number of obstacles to the implementation of this process. These can be attributed to: the lack of a suitable investment climate in the country; imperfection of the market mechanism of the economy; the instability of the political situation; low level of business and professional qualification of entrepreneurs; not enough attractive investment projects and, at the same time, lack of interested partners. In addition, the tax rate applies to the intensity of investments; absence of an active insurance investment system; excessive monopolization of the economy, as well as increased inflation. There is also a lack of private ownership of land and non-convertible hryvnia. Therefore, the purpose of the study is to determine the role of the investment climate in Ukraine in the development of the Ukrainian economy and the regulation of the investment climate. The assessment of the investment climate is based on an analysis of factors that determine the investment climate conducive to economic growth, and factor analysis suggests that Ukraine's reputation as a complex place for both foreign and Ukrainian business is confirmed. Negative factors need to be changed to positive ones. This requires joint efforts of scientists, specialists and workers of all hierarchical levels of government. Ukraine remains attractive for investment, at the same time it is not far from the world's processes, is sufficiently integrated into the world economy and the violation of macro stability in foreign markets has its echo in Ukraine. Despite the high growth rates of investment spending, it should be noted that the most attractive for investing are types of economic activity that are not highly technological and are not the main factors of innovation development of the country. The local authorities are taking steps to inform potential investors through foreign embassies and Ukrainian diplomatic representations abroad about the investment proposals of enterprises and organizations in their regions. As a result of research on foreign investment in Ukraine, economic development is impossible without stabilizing production, creating conditions for attracting foreign direct investment. The need for a tourism industry in investment requires a well-considered investment strategy that aims to create a favorable investment climate through the integrated use of investment policy tools and the unification of the interests of the state and private investors.

Keywords

investment climate, regulatory mechanisms, Ukraine, investments, investment-attractive branches, mechanism of attraction of investments.

JEL classification: D920; L510; DOI: 10.32680/2409-9260-2019-3-266-139-154

UD classification: 336.02:338.24

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