Features of the investment activity of Ukraine’s regions

Abstract

Regions of Ukraine are significantly different in terms of direct foreign investments in different Ukraine’s regions: the share of the capital is a quarter of all investments coming into the country. Donetsk, Dnipropetrovsk and Kyiv regions concentrate 10.9%, 8.3 % and 7.9 %, respectively. At the same time 13 regions have 13% of all investments coming into the country.

Based on the results of conducted research on the share of direct foreign investments in different regions of Ukraine for 2013 we can state a sharp imbalance in the regional structure of direct foreign investment. The share of the direct foreign investment for Kyiv is 25,85 %, that allows the capital to take the first place in Ukraine. The capital of Ukraine is the sole leader by the volume of the direct foreign investments. Generally, all investments coming to Ukraine are divided by regions of the country unevenly. Three-quarters of all direct foreign investments in the Ukraine’s economy (77,6%) are in 10 Ukraine’s region (the city of Kyiv, Donetsk, Dnepropetrovsk, Kiev, Odessa, Lviv, Luhansk, Kharkiv, Poltava, Zaporizhia regions and the Crimea).

These regions have different factors of high investment activity: the importance of administrative centers with the highest values of the economic potential, a high rate of the industry and production development, structure and institutions of the non-production sphere. Other regions have less than 2,5% of the direct foreign investments, in particular Vinnytsia, Mykolaiv and Ivano-Frankivsk regions receive 1.8 % (per each region); the indicator for other regions is less than 1%. 16 regions with a low indicator of the direct foreign investments are characterized by the low rate of industrial economic development. The investment projects presented in these regions are not long term and aimed only at support of the region’s livelihood, but not at their growth and development. Also it is worth noticing that the regions –satellites (Chernihiv, Sumy), can be identified as the the region where production is oriented on the metropolitan investors market.