FOREIGN INVESTMENT OF UKRAINIAN BUSINESS

Abstract

The qualifying thesis is devoted to the study of Ukraine's attractiveness for foreign investment, as well as the main problems in attracting foreign direct investment. The principles of state regulatory policy in the field of FDI in the group countries have proven their effectiveness, but cannot be fully taken into consideration as a basis for Ukraine because of different conditions of sociopolitical and socio-economic development. A comprehensive analysis – quantitative and qualitative – of foreign direct investment in Ukraine was held: the periods of FDI inflows, their main trends, FDI regulation features have been considered; factors and conditions of influence on the investment process in Ukraine have been determined; the essential characteristics of foreign direct investment have been revealed through consideration of the dynamics and structure of FDI inflows by regional, sectoral and geographical distribution. The results of the analysis showed the lethargy (lack of qualitative expansion) of foreign direct investment and the inconsistency of the investment structure to the strategic objectives of Ukraine's development. This characterized by a significant degree of regional heterogeneity, low diversification of FDI revenues by geographical distribution, the relatively low share of investment in the real sector. The methodological approach to assessing the effectiveness of FDI in the system of economic security indicators has been improved, which has been characterized by the use of a number of indicators (determination of threshold and optimal values of indicators, their weights) and the appropriate methodology for calculating the integrated index. The assessment made it possible to establish that during the analyzing period the integrated index was within the danger zone. The values of the indicators testified the lack of environment for the proper and effective functioning of FDI, as well as the need to improve management in the field of foreign direct investment in the context of NEI implementation.