scholarly journals Formation of the investment market in Ukraine

Author(s):  
О. T . Prokopchuk ◽  
◽  
M. I. Malyovanyi ◽  
Yu. A. Tsymbalyuk

A necessary condition for the development of the economy is an increase in the investment activity of investors in the country, an increase in investment resources and their effective use. Therefore, the study of trends in the development of the investment market is relevant and of great practical importance. Specifically, investments form production potential on the latest scientific and technical basis and determine the competitive positions of states in world markets. The study of the formation of the investment market in Ukraine made it possible to form the following conclusions:  the total volume of foreign direct investment in Ukraine in 2020 amounted to $ 453 million. USA, which is 14 times less than in 2010;  the study of the geographical structure of foreign investment made it possible to determine that in 2020, 453 million dollars were invested in the Ukrainian economy by direct foreign investors from more than 76 countries of the world. US direct investment It should be noted that the main investing countries include Cyprus – 31.1 %, the Netherlands – 20.2 %, the UK – 6.1 %, Switzerland – 6.0 %, Germany – 4.6 %, Austria – 3.3 %;  analysis of the distribution of foreign direct investment in the context of sectors of the economy in Ukraine made it possible to note that the greatest interest among foreign investors in 2020 was aroused by industry - 180.35 million dollars. USA, that is, 39.8 %. The leading spheres of economic activity in terms of the development of direct investments in 2020 remain: wholesale and retail trade, repair of motor vehicles and motorcycles – 106.9 million dollars. The United States, accounting for 23.6 %; financial and insurance activities – $ 96.9 million, which is 21.4 %. Thus, Ukraine remains attractive for investments and is not aloof from world processes, is sufficiently integrated into the world economy and the violation of macrostability in foreign markets has its echo in Ukraine. Thus, the investment market is a rather complex phenomenon, with its own internal structural structure, which is sensitive to changes in the external environment. At the present stage, its construction is represented by the classification of structural and infrastructural elements, as well as by supervisory and control bodies, ensuring its functioning thanks to market mechanisms.

Significance Last week, its partners in the ‘Quad’ grouping -- the United States, Japan and Australia -- agreed to help increase its vaccine manufacturing and exporting capacity. Each of the Quad members is wary of China, which like India is gifting and selling coronavirus jabs around the world. Impacts India’s manufacturing sector will attract more foreign direct investment. Greater cooperation over supply chains will help strengthen India-Australia ties. Indian pharma will in the long term aim to ease dependence on imports of active pharmaceutical ingredients from China.


2018 ◽  
Vol 26 (4) ◽  
pp. 760-772
Author(s):  
Yury K Zaytsev

The economic and political sanctions had a significant impact on the behavior of foreign investors in the real sector of the Russian economy in the period 2014-2017. Despite a significant outflow of foreign direct investment (FDI) in 2015, in 2016-2017, there was an increase in investment activity associated with a steady inflow of FDI, which could be explained by the change in investment strategies of foreign business in Russia. The purpose of the study. The article assesses the impact of Western sanctions and Russian countersanctions on the influx of foreign direct investment into Russia. Methods. The work is based on methods of statistical analysis of the behavior of foreign investors in Russia on the basis of macroeconomic data of the Central Bank of Russia and microeconomic data of the “Ruslana” database. Results. The author gives various assessments of sanctions and counter-sanctions impact on the Russian and European economies, and compares the effects of sanctions policies in Russia and Iran. The stylized facts, identified by the author at the micro level, allow to interpret the macro statistics provided by the Central Bank of Russia at a qualitative level. The conclusion . In conclusion, the author gives recommendations on the possibilities of using new mechanisms of interaction with international institutions to overcome the investment crisis as a consequence of the sanctions regime.


Author(s):  
Volodymyr Hoblyk ◽  
◽  
Maryna Resler ◽  
Yaroslava Demyan ◽  
◽  
...  

The article examines the attraction of foreign investment in the Transcarpathian region within the cross-border region. Investment cooperation with the territories bordering the countries of the European Union - Poland, Romania, and Hungary - is analyzed. Slovakia. It is established that the most intensive cooperation is carried out in the Ukrainian-Hungarian cross-border region. In addition to foreign direct investment, Hungary provides both lending assistance and through Egan Ede's Economic Development Program, strengthening economic, cultural, and historical ties with its border areas. Using statistical methods, the inflow of foreign direct investment in the Transcarpathian region is analyzed. It is established that the total volume of foreign direct investment is 243 million US dollars, including from the countries of the European Union 225.3 million US dollars, which is 92.7% of the total. It is determined that the greatest interest among foreign investors by type of economic activity is as follows: industry - 77.3% (total), wholesale and retail trade - 5.2%, then - transport, agriculture, forestry and fisheries, construction, real estate transactions. The share of Hungarian investments in the Transcarpathian region is most significant among neighboring countries. The possibilities of using the experience of Hungary in the administrative-territorial and land reform and the possibility of applying it in territorial communities are considered. It is proposed to create an association of agricultural producers in the united communities with the participation of farmers, private farms, and foreign investors. The methodology and principles of creating the association are laid down. The study identified factors that hinder the process of investing and improving the investment climate in the cross-border region. The most important is the insufficient development of border infrastructure, inadequate institutional support for investment activities, low quality of human capital, the inertia of border business.


2020 ◽  
Vol 11 (2) ◽  
pp. 645
Author(s):  
Natalia V. TRUSOVA ◽  
Tetiana A. CHERNIAVSKA ◽  
Yurii Y. KYRYLOV ◽  
Viktoriia H. HRANOVSKA ◽  
Svitlana V. SKRYPNYK ◽  
...  

The article deals with the theoretical, methodological and practical aspects of ensuring a safety level the investment attractiveness of the world countries economy in the polystructural space of foreign direct investments. In the context of the implementation of investment policy and factors in the field of international investment, an optimization model of the investment attractiveness of the national economy has been developed. The aggregate factors of the investment attractiveness index, which characterize the investment climate, investment activity and the state of economic development of the country, are highlighted. A methodical approach is presented to determine the synergistic impact of foreign direct investment on the country's investment attractiveness indicator. The criteria of normalization of investment attractiveness of the economy of the country by indicators of macroeconomic, monetary and currency status, which are formalized by indicators-stimulators, destimulators and interaction of bilateral boundary constraints are proposed. The criteria of identification of risks and threats of safe and dangerous state of development of the economy of the countries by the methods of prognostic extrapolation of foreign direct investment are taken into account. A comparative assessment of global foreign direct investment flows and global GDP, the value of net sales of cross-border mergers and acquisitions was made. The structure of foreign direct investment by regions of the countries of the world is considered, taking into account their external reserves of investment potential. The indicators of investment attractiveness of the Ukrainian economy and its cooperation with EU countries in terms of the volume of inflow and direct investments are presented. The scenarios for the growth of foreign direct investments in the polystructural space of the world and developing countries are proposed.  


Author(s):  
L. M Buiak ◽  
N Harmatii ◽  
I Fedyshyn

Purpose. To analyze the flows of foreign direct investment (FDI) in Ukraine, countries of the OECD, the G-20, the EU, and the World, as well as the impact of the coronavirus COVID-19 pandemic on investment activity in the World; to identify problems and threats for investment activity in modern conditions, to identify relationship between FDI in Ukraine, the level of exports and imports of goods and services in Ukraine, to forecast these indicators. Methodology. In the process of research, general logical methods and research techniques were applied: analysis, synthesis, generalization, analogy, modeling, probabilistic (statistical) methods. The materials of the official analytical reports of the OECD, the European Commission, and the State Statistics Service of Ukraine were used to achieve the tasks of the investigation. The statistical data for the period 20112019 was analyzed. Forecast of foreign direct investment in Ukraine for the period 20202023 was implemented using the theory of Markov chains. Findings. The study indicates a significant decline in investment activity since the beginning of 2020 due to the coronavirus COVID-19 pandemic. Almost all economies in the world witnessed the impact of the crisis. There was a drop in investment activity in Ukraine output flows tended to decrease during 20092019. Taking into account the stochasticity of the processes taking place in the world economy, on the basis of the theory of Markov chains, forecasting of FDI in Ukraine was carried out. The modeling showed that in 2023 the situation with FDI in Ukraine would stabilize. Taking into account the predicted scenarios, the authors suggested that enterprises must focus on domestic investment and government support to overcome the crisis in the economy caused by the situation with COVID-19. Originality. The scientific novelty is in the use of the theory of Markov chains, which was adapted by the authors for research and forecasting of FDI in Ukraine till 2023. This theory makes it possible to take into account the stochasticity and instability of the processes occurring in the global and national economies. Practical value. The analysis of incoming and outcoming FDI flows and the identified threats to investment activity makes it possible to assess the dynamics of world economic processes and global competitiveness in the period 20112020. Using the tools of economic and mathematical analysis based on the regression influence, the degree of influence of direct investments in Ukraine on the dynamics of the GDP of the national economy and the level of exports and imports of goods were investigated. The forecasting of the dynamics of direct investments in Ukraine in the near future was carried out using the theory of Markov chains, which will allow working out appropriate decisions on the strategic development of the state.


Author(s):  
Ikboljon Odashev Mashrabjonovich

The article examines the relevance of the correlation between the index of corruption perception and the index of the attractiveness of foreign direct investment in the formation and implementation of state investment policy and the impact of development projects of countries that implement analytical formulas of multiple regressions. And we recognize some important drivers and factors of modelling the problems of foreign direct investment, which are associated with attracting into the economy, increasing the attractiveness of its development. The real examples are given related to corruption and foreign direct investment studied by different scientists of the world. The task is set how it will determine how much corruption in the world will affect the attractiveness of foreign investors by means of selected countries.


2020 ◽  
Vol 23 (10) ◽  
pp. 68-77
Author(s):  
Natalya Chernenko ◽  
Olena Korohodova ◽  
Tetiana Moiseienko ◽  
Yaroslava Hlushchenko

The study considers the issue of investment activity of transnational corporations – the largest representatives of world business, which acquire new features that are developed under the influence of the fourth industrial revolution. The study highlighted the increasing role of corporations in the international investment market. The authors mention the features of rhetoric that accompanies the penetration of TNCs into the economic systems of the world and reflects the impact on economic, political, and social components, highlighting the rules of foreign direct investment state regulation, founding the most liberal approaches to attracting FDI. Tracking the changes taking place under the influence of Industry 4.0 allowed to develop a list of features that are inherent in the investment activities of TNCs. Among the inherent features, the reshoring process, which has been used by United States corporations for a long time, is gaining popularity. The study reflects the course of export-import operations with foreign direct investment in the world, which is developed by analysing the data on the flow of FDI imports and exports. It is established that Industry 4.0 is described by such risks, which are developed due to the growth of instability and a high level of uncertainty of the result. Attempts to integrate achievements of the fourth industrial revolution into economic and business practices, which are rapidly taking place in the modern world, are directly related to Ukraine, which is in great need of international financial and technological aid. It is emphasised that TNCs can provide the country with the said resources as the leading investors for Ukraine, despite the fact that in Ukraine the amount of foreign investment from TNCs is currently insignificant and mainly aimed at meeting the needs of the domestic market, own consumption and not in export-oriented industries. The study also analyses the factors of direct influence on the decision of corporate management to conduct business in Ukraine. Furthermore, the study emphasised the necessity of developing and implementing effective state regulatory mechanisms that can balance the interests of leading corporations and national enterprises


2021 ◽  
pp. 160
Author(s):  
Vadym Maslii ◽  
Sviatoslav Pytel

Introduction. Foreign direct investment occupies a significant place  in financial flows and creates tools through which stable and long-term ties between countries are formed. Investment flows, which are both balanced and geographically and conjunctively disproportionate, can have positive and negative consequences for the host country’s economy. Particular attention should be paid to the qualitative parameters of the foreign investment process, which include the country of origin of investments, that is, their geographical location.Purpose. The purpose of the article is a comprehensive study of the geographical structure of foreign direct investment in Ukraine throughout the time-period of our country’s existence as an independent participant in the process of foreign investment.Method (methodology). In the process of researching the selected topic, the following methods were used: monographic – in order to study the results of existing analytical research, the object of which is the process of foreign investment in Ukraine and its aspect as the geographical structure of foreign investments is investigated; method of calculating the relative values of the structure – for the research of the geographical structure of foreign direct investment in Ukraine, which made it possible to abstract from a specific numerical expression of the volume of parts of the population; tabular – for submission of analytical information about the object of research; graphic – for visual presentation of the obtained statistical data on the geographical structure of foreign direct investment in Ukraine. Results. International investment activity has a significant impact on the geographical structure of FDI in Ukraine. During the study period (1995 - the end of 2019) the main investors were European countries. They exported to Ukraine annually about 50 % of the total invested capital, and in 2006-2011s, this figure reached 70 %. Investments from the European Union play a crucial role in Ukraine’s foreign direct investment process.According to the research, over the past 25 years there have been significant transformations in the territorial geographical structure of FDI in Ukraine. First of all, the number of investor countries has increased and the role of leaders, such as the United States, Germany, and the United Kingdom, has decreased. The role of investments from offshore countries and countries equated to them, such as Cyprus, Belize, the Bahamas, the British Virgin Islands, the Netherlands and others, has significantly increased. If in early 1995 the share of investments from these countries was about 11%, then at the beginning of 1998 this figure was 20 %, at the beginning of 2008 - 33%, at the beginning of 2011 – 51 %, and at the end of 2019 - 60 % respectively. It should be noted that there is no significant investment from South America, such as Brazil, Mexico and Venezuela, the industrialized countries of East and Southeast Asia and China, which is one of the 10 leading countries in the world. In this direction, promising investment cooperation should be expanded by concluding investment agreements taking into account the interests of future investors.Perspectives. In our opinion, promising in the future are studies of sectoral and territorial structure of FDI in terms of the largest countries of investors, assessment of their impact on the economic development of Ukraine in order to make effective management decisions in attracting foreign investors.


1996 ◽  
Vol 50 (4) ◽  
pp. 565-591 ◽  
Author(s):  
John B. Goodman ◽  
Debora Spar ◽  
David B. Yoffie

Over the past decade, foreign direct investment (FDI) in the United States has grown dramatically, changing the composition of many U.S. industries and bringing foreignowned firms into the domestic political process. Presumably, FDI also has affected the politics of protection, by both altering the domestic coalitions around protectionist demands and shifting the potential benefits that protectionism is likely to bring. To understand this process, we create and test a model that examines the level of inward investment and the extent to which this investment either complements or substitutes for existing import levels. Import-complementing investment, we suggest, will cause a split in protectionist demands, with local producers favoring protectionism and foreign investors pushing for free trade. Import-substituting investment, by contrast, will create convergent interests between local and foreign producers. In both cases, inward FDI reshuffles traditional alliances and demands for protection, challenging many prevailing views about protectionism in the United States.


Author(s):  
Tetyana Bandura

The article dwells on the issue of foreign investment attraction to regions. The importance of foreign investment in regions’economy and the country in general is emphasized, the factors, which are decisive for investors in the analysis of region’s attractiveness, and factors that influence the level of to regions are examined, the mechanisms of foreign direct investment attraction are analyzed through the prism of cross-border cooperation forms. The European experience of foreign investment attraction is examined and statistical data for the recent years is provided. The level of foreign direct investment in four oblasts of Carpathian region is analyzed, the dynamics of foreign direct investment per capita in border regions is reviewed, and the reasons / preconditions of growth/fall of the rates are explained. The role of decentralization in attraction of foreign investors is shown and opportunities and algorithm of activities to be conducted by territorial communities to attract investors are described. The ways to increase investment capacity are analyzed. The role of crowd technologies in creation of region’s positive image and the role of territorial development agencies in region’s investment activity are shown and the ways they should work as well as the required resources are explained.  Practical recommendations on improvement of region’s attractiveness for foreign investors are suggested. Keywords: investment potential, investment risk, investment attractiveness, investment environment, investment climate, investment resources


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