ADVERSE INFLUENCE OF INVESTMENT CLIMATE ON INVESTMENT ATTRACTIVENESS OF UKRAINE

Abstract

The article deals with the main directions of state regulation of the investment climate in Ukraine, the question of becoming an investment attractiveness and investment climate. The analysis of dynamics of volume of direct foreign investments in the Ukrainian economy has been made, which made it possible to assess the investment climate of Ukraine at the present stage of development, to determine the reasons that cause an unfavorable investment climate and restrain economic development of the country. It was established, that investment resources are called to influence the economy and social sector of the country to transform it into an international space by searching for new sources of such resources for ensuring perspective development of Ukraine.The main factors influencing the investment climate and the reasons for the reduction of investment flows into the Ukrainian economy are analyzed and the problems encountered by the foreign and national investors are analyzed.It was emphasized, that effective development of industries of Ukrainian economy has a perspective in involving foreign investment resources and forming of the favorable investment climate. The attention was drawn to the fact, that the absence of subsequent reforms prevents the industries from involving the necessary investment into the durable production assets and for improving management skills with an aim to enhance the performance of production facilities.The index of investment attractiveness according to the version of the top managers of member companies of the European Business Association is analyzed.The investment attractiveness of Ukraine at the present stage of development was assessed. It was mentioned that slowness of social and economic reforms, ineffective tax policy, high credit rates in financial and credit establishment, annexation of Crimea and military action in the Eastern Ukraine, bureaucracy in making administrative decisions, illegal trafficking and presence of “shadow” economy in the country — all these are problems, which deteriorate the investment climate in Ukraine and degrade its investment attractiveness.The article determines the ways of solving problems connected with the containment of investment development and proposes directions of improvement of the investment climate.