Abstract
The article deals with the provision of industrial development based the attraction of in-vestment depending on the changing characteristics of the investment climate. Since the problems of stagnation of the industrial production, its low productivity, excessive financial vulnerability (in view of high debt dependence and low solvency of the sector’s companies), capital losses, and the level of profitability, which is insufficient for reproduction, all remain relevant, the study offers those means of their solution that are related to attracting investments and improving the investment climate. The author highlights essential aspects of the investment climate and its impact on attract-ing investment in the industrial development. Conducted a comparative analysis of the indicators of industrial activities depending on the characteristics of the investment climate on the example of reference groups of foreign countries and Ukraine, which revealed various problematic aspects of the conditions of investment in Ukrainian industry. A set of econometric models was developed with whose help the author substantiates the effect of the system of factors of the investment climate (namely: macroeconomic stability, development level of the goods, financial and labor markets, innovative activities and technological transfer) on the industrial development and assesses the changes caused by thelong term shifts in the parameters of the industrial system. The author shows the feasibility of implementing a comprehensive approach to improving investment conditions with the use of various public policy instruments that determine the investment climate (including macroeconomic, monetary, and scientific and innovation policies as well as policies of the expansion of product inlets and regulation of the labor market) to ensure industrial development. In particular, in the context of the support of innovation, the article proposes the application of smart specialization strategies, which envisages modernization and diversification of regional industrial potential, and enhancing their entrepreneurial capabilities based on the introduction of technological innovations.
Highlights
The author highlights essential aspects of the investment climate and its impact on attracting investment in the industrial development
A set of econometric models was developed with whose help the author substantiates the effect of the system of factors of the investment climate on the industrial development and assesses the changes caused by the long term shifts in the parameters of the industrial system
A comparison of industrial performance indexes in different investment climate conducted based on data of the reference groups of selected foreign countries and Ukraine has revealed a number of problematic factors
Summary
The article deals with the provision of industrial development based the attraction of investment depending on the changing characteristics of the investment climate. This comprehensive study substantiated the need for financial sector development, as well as the necessity to support export activities of national manufacturers, implement effective innovation policy, improve state regulation and strengthen the judicial system Such surveys referring to different regions of the world, namely in Africa, have shown a link between the unfavorable investment climate and the weakness of private business, and low productivity, which is slowing down the diversification and technological modernization of the economy [15, 16]. The influence is transmitted through decisions of national and foreign investors, stock markets, credit institutions, consumers and customers of industrial products, etc Any such change is eventually fully reflected in the industry's investments and determines its development, since industrial business is characterized by relatively high capital intensity, a need for large amounts of investments and their long-term payback. These factors serve as drivers of industrial competitiveness [41], so it is only natural that countries with a more favorable investment climate hold high positions in the global industrial competitiveness index
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