An Instrument For Assessing Local Enterprise’s Internal Capacity In Linkage With Foreign Direct Investment

2015 ◽  
pp. 151-156
Author(s):  
A. Koval

The improving investment climate objective requires a comprehensive approach to the regulatory framework enhancement. Policy Framework for Investment (PFI) is a significant OECD’s investment tool which makes possible to identify the key obstacles to the inflow foreign direct investment and to determine the main measures to overcome them. Using PFI by Russian authorities would allow a systematic monitoring of the national investment policy and also take steps to improve the effectiveness of sustainable development promotion regulations.


Author(s):  
Orshanska Marіana

The purpose of the article is to determine the nature, characteristics and keyproblems of the main types of economic and legal instruments for the realizationof foreign direct investment (FDI). the methodological basis of the study is asystematic approach to the processing and compilation of statistics and indicators,as well as methods for their comparison, analysis and synthesis and a method offorecasting decisions on the use of investment potential to increase the attractivenessand volume of FDI attraction. The scientific novelty of the research lies in theanalysis of greenfield and brownfield strategies as the main forms of FDIimplementation, the disclosure of the content and interpretation of data on thereal state of FDI attraction, the search for opportunities to improve the investmentclimate and effective mechanisms for attracting foreign investors. conclusions. Itis confirmed that the investment attractiveness and rating of the country in theinternational market are the main factors for attracting investors. Inaccessibleinfrastructure, inefficient judicial system, high level of corruption and imperfectlegislation are the main obstacles that need to be overcome in order to attractforeign investors’ funds, providing a full package of assistance and support ateach stage of the implementation of investment projects. Greenfield and brownfield(M&A) are the most effective forms of FDI in order to achieve high growth ratesof the domestic economy, improve the level of population well-being andinternationally enter Ukraine. An analysis of the statistics on the effectiveness ofinnovative enterprise development projects, the characteristics of economic andlegal instruments indicate the gradual improvement of the investment climate andthe promotion of FDI inflows into the region’s economy through the implementationof greenfield and brownfield strategies. Examples of effective implementation ofthese strategies in the creation of new enterprises, companies of foreignrepresentation, which are expanding their capacity and entering new domesticmarkets are given. Examples of the brownfield strategy have been analyzed torestart existing and high-quality structural and organizational changes in inefficiententerprises, which have given impetus to improving the economic environment,investment attractiveness of the economy of the region and the country as a whole.


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