PROBLEMS OF ECONOMIC DEVELOPMENT AND ATTRACTION OF FOREIGN INVESTMENT IN THE COUNTRIES OF THE BLACK SEA REGION

Abstract

Topicality. The importance of using new opportunities for economic development, sustainability and connectivity in the region and beyond is enhanced in terms of the growing strategic importance of the Black Sea region for the EU. Investments are the basis of socio-economic development of the region. Investments related to the deepest foundations of economic activity, they determine the process of economic growth in general. In modern conditions, they are the most important tool of ensuring the conditions for the overcoming the economic crisis, for structural changes in the countries, for the growth of technological progress, for the improvement of quality indicators of economic activity at micro and macro levels. Aim and tasks. The purpose of the article is to identify the problems of economic development and the associated features of attracting foreign investment in the Black Sea region. Research results. The basic social and economic indicators of the Black Sea region - GDP (GDP), the index of human development, the population, the share of comparison is used to determine the structure and dynamics of incoming and outgoing flows volumes of direct foreign investments regional GDP in the world, are determined, the strategic importance is emphasized on the geopolitical map of the world of the Black Sea region, according the current political and economic challenges in Asian-European relations, dynamics and structure of incoming and outgoing investments of the countries of the region over the last nine years are defined. On this basis was concluded about the significant drop in investment activity in the region since 2014. A list of the main reasons for the decline in investment activity in the region is formed and relationship with the general indicators of economic development of the region is defined. The connection of problems of economic development and attraction of foreign investments to the countries of the Black Sea region is substantiated, which, unlike the existing approach, covers the participants of the whole region, and not a separate country. Approaches to the joint solution of investment problems of the countries of the Black Sea region are developed, which, unlike the existing ones, provide a synergistic effect and greater attractiveness for investors. Research results can be used by enterprises in attracting investment in cross-border projects, also can be used by intergovernmental groups to formulate strategies for joint provision of investment attractiveness of regional programs, can be used by participants in joint enterprises of the Black Sea region. Conclusion. The countries of the Black Sea region are heterogeneous in their economic indicators, thet are belonging to various economic and geopolitical associations. There are explicit leaders among the countries - Russia and Turkey, which have different geopolitical interests in the region and are not able to become a unifying factor in the region. For several years, the Black Sea region is not in the sight of international investors, and all Black Sea countries must work together to become investment attractive again. China's investment interests are identified in a region that does not hold back political commitments to any of the countries in the region. Business opportunities are the most powerful determinants of FDI.. But the particularities of the investment climate, such as strong institutions and regulatory instruments, are also important for developing countries and countries with economies in transition which looking for attraction of additional FDI. With a poor regional investment climate, foreign investors and their host economies may not be able to take full advantage of business opportunities created by market size and growth potential.