Current Problems of State Regulation of Foreign Investment into Ukraine: Economic and Legal Aspect

Abstract

The conditions and main shortcomings of state regulation of foreign investments are studied. The importance of attracting foreign investment for the successful development of Ukraine as an independent, democratic, social and legal state is substantiated. The categorical apparatus of the terms «investments» and «foreign investments» from the point of view of economy and law is revealed. The existing classification of investments is considered, modern forms of foreign investments are characterized. The assessment of foreign investment inflows in the dynamics and in terms of areas of economic activity is conducted. Ukraine's place in the international rankings is presented, which testifies the improvement of the investment climate and the growth of investment attractiveness of both the country as whole and business entities on their own. The main national and international legal acts regulating investment activity are described. The bodies of state management of foreign investments at the macro level are identified, instruments of state regulation of foreign investment are systematized (tax and customs benefits, subsidies, dotations and subventions, application of accelerated depreciation, mechanism of public-private partnership, state and local guarantees, licensing of certain economic activities, granting loans on favorable terms, etc.). The thesis is substantiated that the indicators of investment activity (in particular the indicator of the volume of attracted investments) are not only an indicator of economic development of a country or region, but are a criteria that evaluates the effectiveness of government activities in investing. In order to harmonize the Ukrainian investment legislation, a system of measures has been proposed that will promote structural changes in the investment sphere and stimulate the attraction of foreign investment in the country. Further improvement of legal regulation of foreign investment will increase the welfare of the state, provide favorable conditions and state guarantees, which will provide the establishment of appropriate organizational and legal norms of investment. Keywords: investments, foreign investments, capital investments, classification of investments, foreign direct investments, portfolio foreign investments, state regulation, instruments of state regulation of foreign investment inflows.