Foreign direct investments from the european union in the economy of Ukraine: current state and trends of involvement

Abstract

Methods. The theoretical and methodological basis of the research is the work of domestic scientists, data from government agencies, in particular the Ministry of Finance of Ukraine, the State Statistics Service of Ukraine, the National Bank of Ukraine. Information from the International Monetary Fund, the EU website, and the European Business Association was also used. The results were obtained using a range of methods: the method of logical analysis made it possible to develop the logic of the research; structural and statistical analysis of dynamics was used to evaluate private foreign investments in Ukraine by EU countries and types of economic activity; graphic method – for visualization of the obtained research results; grouping methods, tabular – for selection, generalization of data and presentation of calculation results; deduction – to highlight certain factors affecting the investment attractiveness of Ukraine and others. Results. The article is devoted to the analysis of trends in foreign direct investment inflows to Ukraine, in particular from EU member states. The essence of direct foreign investments is considered. The volume of FDI in the economy of Ukraine, FDI inflows (operations and balances under instruments) by EU investor countries were studied. It was revealed what events influenced the excess of FDI outflows over inflows in the national economy. The dynamics of the volume of FDI (share capital) in the domestic economy, in particular from EU countries, FDI (residues on instruments) in Ukraine by types of economic activity were also considered and analyzed. The investment attractiveness is characterized and the main negative factors influencing the investment climate of Ukraine are identified. Novelty. An assessment of the current state of direct foreign investment in the economy of Ukraine by EU countries is provided. The general trends of FDI attraction in the economy of Ukraine are substantiated. Prospects for the further development of Ukraine's investment relations with EU countries have been determined. Practical value. The analysis of the dynamics of the volume of private foreign investments in Ukraine makes it possible to predict the trends of future inflows, in particular from the EU countries. It is also possible to identify EU member states that invest the most and the least in our country and, as a result, develop measures to increase Ukraine's attractiveness for FDI from EU countries, since they are economically and innovatively developed.