MACROECONOMIC ANALYSIS AND FORECASTING OF FOREIGN DIRECT INVESTMENT INFLOW: EVIDENCE FROM UKRAINE

Abstract

Attracting foreign investment is a viable means of ensuring the economic growth of any country. The relevance of the study is substantiated by the creation of a favorable investment climate in the country, which will allow the establishment of guarantees of protection of foreign investments and stability of the legal basis for entrepreneurship performance. The article aims to analyze and forecast the inflow of foreign direct investment (FDI) into Ukraine. In order to achieve the stated purpose, the econometric model was developed, which demonstrates the correlation between macroeconomic indicators, their characteristics and the amount of FDI. A set of general scientific and special research methods were used, in particular: induction and deduction, grouping, summarization, comparison, complex and systemic approaches. The article reveals the essence of foreign investment for the Ukrainian economy and defines the characteristics of FDI. The impact of FDI on the economy of Ukraine is analyzed in detail and the conditions for their attraction are substantiated. Using statistical methods, the structure and dynamics of FDI by types of economic activity and investor countries are investigated. The conducted research has shown that through the attraction of foreign direct investment economic growth, the well-being of the population, the reduction of foreign indebtedness and efficient state capital investments are ensured. Taking all this into account the necessary preconditions for the attraction of foreign direct investments into the Ukrainian economy were substantiated.