Ladychenko K., Tronko V. Ukraine investment attractiveness in terms of deepening social and political crisis intensification

Abstract

The dynamics and structure of foreign direct investment in the Ukrainian economy are analyzed. A significant decline in foreign direct investments (FDI) with the same geographical structure of the investors, i.e. the majority of FDI comes from the EU, the country or offshore tax havens, is revealed. It was found that at the global market of investment resources Ukraine is a net consumer and does not play a significant role. It is proved that an essential impact on the position of the Ukrainian specified investment resources is caused by the low investment attractiveness of the national economy as for foreign as for domestic investors. The main problem of FDI attractiveness and factors affecting the investment attractiveness of Ukraine in terms of the economic, social and political crisis are defined. The factors that most reduce the investment attractiveness of Ukraine are the following: the variability of the legislative framework, insecurity of the banking system, the imperfection of the tax system and the excessive tax burden, the incapacity of the legal and economic protection of investors, excessive government corruption, lack of post-investment support projects, the weakness of the stock market, political instability. Despite Ukraine’s ranking improvement, reflecting the positive perception of foreign investors of the national business environment, it is concluded that national reforms to encourage foreign direct investment are not sufficient. Measures to improve the investment attractiveness of Ukraine are proposed.