Enhancing investment attractiveness in wartime: a comprehensive analytical approach

Authors

DOI:

https://doi.org/10.15587/1729-4061.2024.312761

Keywords:

integrated assessment, investment attractiveness, external factors, investment climate

Abstract

The study focuses on analyzing the changes in investment attractiveness during wartime, when certain regions are occupied or destroyed, some enterprises are non-operational due to damaged production facilities, there is a significant outflow of labor force, and energy issues arise.

The core issue of the study lies in the necessity of considering the complex political and economic situation’s impact on Ukraine’s investment climate. This requires developing more adaptive assessment methods that can account for both economic and socio-political risk factors. In such circumstances, reliable data is hard to obtain, which prompted the goal of substantiating the factors that characterize the country’s investment attractiveness. To provide a comprehensive assessment of investment attractiveness, an integrated indicator is proposed, which combines data reflecting investment attractiveness, including indices calculated by leading global organizations. The analysis includes such indices as the Innovation Development Index, the Corruption Perception Index, and the Judicial System Index. As a result, an average value of the changes was calculated, showing a comprehensive shift in the indicators related to investment attractiveness. The analysis using the integrated indicator demonstrated that investment attractiveness has decreased by 10 % during the war, but certain indicators, such as the Corruption Facilitation Index and the Judicial Index, have actually improved during the war.

The results obtained can be used to develop risk management strategies for both international and local investors. They can also serve as a basis for creating recommendations for improving the investment climate, which in turn can attract capital and stimulate economic growth under challenging conditions

Author Biographies

Mariia Karpushenko, O. M. Beketov National University of Urban Economy in Kharkiv

Doctor of Economic Sciences, Associate Professor

Department of Finance, Accounting and Business Security

Tetiana Momot, O. M. Beketov National University of Urban Economy in Kharkiv

Doctor of Economic Sciences, Professor, Head of Department

Department of Finance, Accounting and Business Security

Inna Kraivska, O. M. Beketov National University of Urban Economy in Kharkiv

PhD, Associate Professor

Department of Finance, Accounting and Business Security

Galyna Shapoval, O. M. Beketov National University of Urban Economy in Kharkiv

PhD, Associate Professor

Department of Finance, Accounting and Business Security

Oleg Karpushenko, O. M. Beketov National University of Urban Economy in Kharkiv

PhD Student

Department of Finance, Accounting and Business Security

References

  1. Petrovs’ka, S. A. (2012). Evaluation of investment attractiveness of the region: a comparative factor analysis. Mekhanizm rehuliuvannia ekonomiky, 2, 90−97. Available at: https://mer.fem.sumdu.edu.ua/content/acticles/issue_10/S_A_Petrovs_kaEvaluation_of_investment_attractiveness_of_the_region_a_comparative_factor_analysis.pdf
  2. Bruneckiene, J., Jucevicius, R., Zykiene, I., Rapsikevicius, J., Lukauskas, M. (2019). Assessment of Investment Attractiveness in European Countries by Artificial Neural Networks: What Competences are Needed to Make a Decision on Collective Well-Being? Sustainability, 11 (24), 6892. https://doi.org/10.3390/su11246892
  3. Karelis, S., Kyrkilis, D. (2023). Foreign Direct Investments Country Attractiveness in Post-communist Central and Eastern Europe. Conference: 15th International Conference Economies of the Balkan and Eastern European Countries, EBEEC 2023. Available at: https://www.researchgate.net/publication/376885173_FOREIGN_DIRECT_INVESTMENTS_COUNTRY_ATTRACTIVENESS_IN_POST-COMMUNIST_CENTRAL_AND_EASTERN_EUROPE
  4. Hamilton, L., Webster, P. (2018). The International Business Environment. Oxford University Press. https://doi.org/10.1093/hebz/9780198804291.001.0001
  5. Vinay kumar, T., Ramana, A. V. (2020). Foreign Direct Investment in BRICS and ASEAN Countries: a Comparative Analysis. Journal of Critical Reviews, 7 (10), 6218−6229. Available at: https://jcreview.com/paper.php?slug=foreign-direct-investment-in-brics-and-asean-countries-a-comparative-analysis
  6. Nikolchuk, Y., Lopatovska, O. (2022). Investment attractiveness of Ukraine: trends, problems and solution key vectors. Innovation and Sustainability, 1, 164–175. https://doi.org/10.31649/ins.2023.1.164.175
  7. Činčikaitė, R., Meidute-Kavaliauskiene, I. (2023). Assessment of Attractiveness of the Baltic States for Foreign Direct Investment: The TOPSIS Approach. Journal of Risk and Financial Management, 16 (2), 63. https://doi.org/10.3390/jrfm16020063
  8. Mamonov, K., Nesterenko, S., Radzinskaya, Y., Dolia, O. (2023). City lands investment attractiveness calculation. Geodesy and Cartography. https://doi.org/10.24425/gac.2019.126097
  9. Snieska, V., Zykiene, I. (2015). City Attractiveness for Investment: Characteristics and Underlying Factors. Procedia - Social and Behavioral Sciences, 213, 48–54. https://doi.org/10.1016/j.sbspro.2015.11.402
  10. Marona, B., Głuszak, M., Nalepka, A. (2012). Investment Attractiveness of Polish Cities in the Context of Local Governments’ Attitude towards Investors. Świat Nieruchomości, 4 (82), 32–37. http://dx.doi.org/10.14659/worej.2012.82.05
  11. Budi Purnomo, A. (2020). Pengaruh investasi, pdrb dan penyerapan tenaga kerja terhadap jumlah penduduk miskin. Jurnal Ekonomi Dan Bisnis Airlangga, 29 (2), 79. https://doi.org/10.20473/jeba.v29i22019.79-93
  12. McDonald, R., Adeline, B. (2017). What Investors Want: A Guide for Cities. Centre for Cities. Available at: https://www.centreforcities.org/wp-content/uploads/2017/07/17-07-18-What-Investors-Want-A-Guide-For-Cities.pdf
  13. Osadcha, N., Zatyshniak, V. (2023). Assessment of the Regions’ Investment Attractiveness for Post-War Recovery: The Case of Ukraine. European Journal of Sustainable Development, 12 (4), 548. https://doi.org/10.14207/ejsd.2023.v12n4p548
  14. EBA. Available at: https://eba.com.ua/en/research/doslidzhennya-ta-analityka/
  15. WIPO. Available at: https://www.wipo.int/en/web/global-innovation-index/2023/index
  16. Transparency International. Available at: https://www.transparency.org/en/](https://www.transparency.org/en/
  17. Myrovoi reitynh ynvestytsyonnoho doveryia. Top pacers. Available at: https://www.pacers.top/media/mirovoy-reyting-doveriya-po-pii/
  18. Investment Climate Statements: Israel. U.S. Department of State. Available at: https://www.state.gov/reports/2024-investment-climate-statements/israel/
  19. Karpushenko, M., Momot, T., Mizik, Y., Shapoval, G., Karpushenko, O. (2023). Accounting and analytical provision of enterprise risk management in the conditions of the state of war: identification, assessment, measurement and display of risks. Eastern-European Journal of Enterprise Technologies, 3 (13 (123)), 42–51. https://doi.org/10.15587/1729-4061.2023.282644
  20. Momot, T., Chekh, N., Prylypko, S., Filonych, O., Cherednychenko, O. (2023). Corruption in business: motives and influence on shadow economy. Business: Theory and Practice, 24 (1), 206–215. https://doi.org/10.3846/btp.2023.17365
  21. Momot, T., Kraivska, I., Triplett, R., Azueta, A. C., Kuznicki, S. (2023). Sustainable Roadmap to Global Smart Cities: A Comparative Analysis of Smart City Strategic Plans. Smart Technologies in Urban Engineering, 3–13. https://doi.org/10.1007/978-3-031-46877-3_1
  22. Podatkovyi Kodeks Ukrainy. Dokument No. 2755-VI. Available at: https://zakon.rada.gov.ua/laws/show/2755-17#Text
  23. World bank group. Available at: https://www.worldbank.org/en/home
  24. International Monetary Fund. Available at: https://www.imf.org/en/Home
Enhancing investment attractiveness in wartime: a comprehensive analytical approach

Downloads

Published

2024-10-31

How to Cite

Karpushenko, M., Momot, T., Kraivska, I., Shapoval, G., & Karpushenko, O. (2024). Enhancing investment attractiveness in wartime: a comprehensive analytical approach. Eastern-European Journal of Enterprise Technologies, 5(13 (131), 6–13. https://doi.org/10.15587/1729-4061.2024.312761

Issue

Vol. 5 No. 13 (131) (2024): Transfer of technologies: industry, energy, nanotechnology

Section

Transfer of technologies: industry, energy, nanotechnology

License

Copyright (c) 2024 Mariia Karpushenko, Tetiana Momot, Inna Kraivska, Galyna Shapoval, Oleg Karpushenko

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

The consolidation and conditions for the transfer of copyright (identification of authorship) is carried out in the License Agreement. In particular, the authors reserve the right to the authorship of their manuscript and transfer the first publication of this work to the journal under the terms of the Creative Commons CC BY license. At the same time, they have the right to conclude on their own additional agreements concerning the non-exclusive distribution of the work in the form in which it was published by this journal, but provided that the link to the first publication of the article in this journal is preserved.

A license agreement is a document in which the author warrants that he/she owns all copyright for the work (manuscript, article, etc.).
The authors, signing the License Agreement with TECHNOLOGY CENTER PC, have all rights to the further use of their work, provided that they link to our edition in which the work was published.
According to the terms of the License Agreement, the Publisher TECHNOLOGY CENTER PC does not take away your copyrights and receives permission from the authors to use and dissemination of the publication through the world's scientific resources (own electronic resources, scientometric databases, repositories, libraries, etc.).
In the absence of a signed License Agreement or in the absence of this agreement of identifiers allowing to identify the identity of the author, the editors have no right to work with the manuscript.
It is important to remember that there is another type of agreement between authors and publishers – when copyright is transferred from the authors to the publisher. In this case, the authors lose ownership of their work and may not use it in any way.