Index Of Investment Attractiveness Research Articles

НАПРЯМИ ПІДВИЩЕННЯ ІНВЕСТИЦІЙНОЇ ПРИВАБЛИВОСТІ УКРАЇНИ НА СВІТОВІЙ АРЕНІ

In the conditions of deepening of transformational processes of development and formation of market relations in the system of world economy all branches of economy of Ukraine undergo significant transformations and reorientation. Under the influence of internal and external factors, the market environment changes. Despite the great resource potential, Ukraine fails to gain a leading position compared to economically developed countries. Therefore, it is advisable to study the current state of Ukraine's economy, analyze the dynamics of key indicators, assess the place in the world economy and find possible ways to improve the situation. As a result of the study, the main indicators characterizing the economic development of Ukraine for 2010-2020 were considered. Among them, the index of global competitiveness, the index of investment attractiveness occupy a special place. The analysis of the dynamics of these indicators revealed negative trends due to the aggravation of economic crises, hostilities in the east, the annexation of the Autonomous Republic of Crimea, destabilization of social and political life, the COVID-19 pandemic. It is determined that the main reason for this situation is the bankruptcy of domestic enterprises due to the low level of competitiveness and the inability to adapt to changing conditions of the external and internal environment and attract investment. The study proposed methodological approaches to assessing the level of investment attractiveness of the country and proved the importance of the ability not only to create new competitive advantages, but also to keep existing ones under the influence of a number of factors; Ukraine's ranking positions in comparison with other countries of the world according to the index of business conditions, the index of economic freedom, the index of global competitiveness, world competitiveness and world digital competitiveness are determined. It is established that the deterioration of rating places on these indicators requires the immediate development of new regulations, the choice of a new strategy for attracting investment, as well as the effective use of levers of influence on the economy.

ТРЕНДИ ІНВЕСТИЦІЙНОГО РОЗВИТКУ ПІДПРИЄМСТВ ГОТЕЛЬНОГО ГОСПОДАРСТВА УКРАЇНИ

The article is devoted to the definition of modern trends in investment development of the hotel industry of Ukraine. The development of the hotel business has a positive impact on the economy of any country. The quality of accommodation services in Ukraine is much lower than in European countries, but Ukraine has all the opportunities to achieve a higher level. It will be possible under the condition of creating a favorable investment climate, as well as attracting foreign investment for the development of the hotel industry of Ukraine. Therefore, it is important to study current trends in investment development of hotel enterprises. The main factors influencing the process of attracting investment in the hotel business are studied. The directions of development and improvement of the investment climate in Ukraine are determined. The modern development of the hotel business investment process is analyzed. New approaches to attracting investment in the hotel industry are proposed. New methods of attracting foreign investment in the hotel business of Ukraine have been developed. The relationship between the development of the hotel industry and other sectors of the economy has been established. The influence of the state on attracting foreign investments is studied. Necessary changes at the state level have been identified in order to attract investments to the country. The dynamics of the investment attractiveness index from 2012 to 2020 is analyzed. The investment climate and business climate of Ukraine are considered and analyzed. The positive and negative moments that have an impact on him are highlighted. The main factors that improve the investment attractiveness of any country are identified. The economic factors that play a crucial role in improving the investment climate are listed. Modern tendencies of hotel business development in Ukraine are revealed. The factors, in particular economic and socio-economic, that affect the development of various industries of the country and directly those that have an impact on the hotel industry are highlighted. The main methods of attracting foreign investment are structured. Factors that ensure overcoming or reducing investment risks are identified. The main tendencies of investment development of hotel business in Ukraine are formed.

ОЦІНКА РІВНЯ ІНВЕСТИЦІЙНОЇ ПРИВАБЛИВОСТІ ЕКОНОМІКИ УКРАЇНИ КРІЗЬ ПРИЗМУ МІЖНАРОДНИХ РЕЙТИНГОВИХ ОЦІНОК: ПОШУК ШЛЯХІВ АКТИВІЗАЦІЇ

The article is devoted to the topical issues of assessing the level of investment attractiveness of Ukraine’s economy thanks to international rating agencies and organizations. The dynamics of the level of investment attractiveness of the economy of Ukraine are analyzed, taking into account the conduct of military operations on the territory of the state. The advan- tages and disadvantages of forming a favorable level of investment attractiveness for both domestic and international investors are determined. The key areas of activation aimed at increasing the level of investment attractiveness of Ukraine’s economy and its ranking positions on the world stage are outlined. General economic and special scientific methods, including the abstract method, analysis and synthesis, as well as the statistical method, became the main research methods used in the presentation of scientific material. In addition, the materials of the scientific study are devoted to a comprehensive analysis of the matrix of the main spheres of activity of the European Business Association, which is engaged in measuring the state of the investment attractiveness of the world’s economies. The article analyzes the dynamics of the Investment Attractiveness Index of Ukraine’s economy, as assessed by the European Business Association, by half-year in the period from 2016 to 2020, and provides data on the ranking positions of Ukraine’s economy according to the Global Competitiveness Index of the World Economic Forum. The materials of the scientific research outline measures to increase the level of competitiveness of the economy of Ukraine in the field of public policy, based on the materials of research by international rating agencies and associations. Based on the results of the research, it can be stated that it is necessary to implement a balanced mechanism of state regulation of the level of competitiveness of the economy of Ukraine. Thus, based on the urgent need to carry out a comprehensive assessment of the level of investment attractiveness of the economy of Ukraine, we state the relevance of the mentioned topic and the need for an appropriate analysis through the prism of international rating assessments.

КОНЦЕПТ ФАКТОРІВ, ЩО ВИЗНАЧАЮТЬ ІНВЕСТИЦІЙНУ ПРИВАБЛИВІСТЬ РЕГІОНУ

The different characteristics that describe individual regions lead to significant differences in the ability to raise capital in the form of investment in the regional structure. This is largely determined by factors that are taken into account in the process of localization of investment by potential investors (also from abroad), more broadly identified with localization factors or synthesized using the index of investment attractiveness. It was substantiated that investors ’decisions are influenced by a number of subjective factors that are quite difficult to measure, and they express an individual system of preferences, partly determined by the investor’s knowledge, including the image of the region. It was proposed during the analysis of investment attractiveness of the region to determine the real investment attractiveness, which should be interpreted from the standpoint of “popularity” of investing in a particular sphere. Since the region is able to absorb financial and physical capital in the form of investment, the definition by analyzing the value of investment in enterprises or foreign direct investment allowed to identify the disadvantage of this approach as an opportunity to analyze attractiveness based on ex post investment in contrast to the ex ante approach. It also established that the real investment attractiveness can be assessed on the basis of past investments and thus select the region that attracted the most of them, and relatively symptomatic variables can be indicated, the increase of which will indicate increasing attractiveness. It was proposed to divide location factors into “hard” and “soft” by the nature of the impact, which correspondently will allow identifying directly with the cost of doing business and income and – the subjective feelings of investors and their internal value system.

ІНОЗЕМНЕ ІНВЕСТУВАННЯ В ЕКОНОМІКУ УКРАЇНИ: МАСШТАБИ, СТРУКТУРА, ПЕРСПЕКТИВИ

The experience of many countries around the world shows the effectiveness of attracting foreign direct investment to the economy. The purpose of the paper is to study the processes of foreign direct investment in the economy of Ukraine, its amount, structure, and prospects for development, as well as to find ways to intensify investment inflows to the country. The article examines the investment attractiveness of Ukraine on the basis of the index of investment attractiveness, calculated by the European Business Association in 2009-2017 years. According to the European Business Association data it has been established that in recent years businesses in Ukraine have not noticed any new negative factors for investment activity, but many unfavorable factors from previous years remain the same (high interest rates on bank loans; high level of corruption; slow pace of reforms; lack of progress in judicial and land reforms, etc.). The dynamics of inflows and outflows of foreign direct investment in Ukraine in 2008-2018 years is analyzed. It is established that for the last six years the country has not reached a significant increase in foreign direct investment at the level of 2008. The structure of foreign direct investment in Ukraine by types of economic activity is studied. It is established that investors are ready to invest only in already developed areas of activity: wholesale and retail trade, repair of motor vehicles, and financial and insurance activities, which provide a sufficient level of profitability. A short-term forecast of the inflow of foreign investments to Ukraine with the help of econometric analysis is developed, a graphic model is built. It is provided that if the trend described by the model is observed in the future, the amount of foreign direct investment inflows will increase in 2020-2021 years. The main recommended measures for Ukrainian government for the improvement of the investment activity in the country are optimization of the tax system, improvement of the procedure for payment of customs duties and taxes, creation of a system of legal protection for foreign investors, etc.

Risk factor analysis combined with deep learning in the risk assessment of overseas investment of enterprises.

To evaluate the overseas investment risks of enterprises and expand the application and development of deep learning methods in risk assessment, 15 national clusters are utilized as samples to analyze and discuss the overseas investment risk indicators of enterprises. First, based on the indicator system of overseas investment risks, five major types of investment risks are identified. Second, the Deep Neural Network (DNN) is introduced; a risk evaluation model is constructed for enterprise overseas investment. Finally, the investment attractiveness index in the Fraser risk assessment learning label is adopted as the evaluation results of the model. According to the classification of risks, the model is trained and its performance is tested. The results show that the major source of overseas investment risks includes basic resources, political systems, economic and financial development, and environmental protection. The corresponding risk score is high. North American country clusters and Oceanian country clusters have lower investment risks, while the investment risks in Africa, Latin America, and Asia are affected by multiple factors of the specific cities. This is closely related to the resources and legal systems possessed by the country clusters. This is of great significance for enterprises to conduct risk assessment in overseas investment.

The effects of the mining operation activities permit process on the mining sector in Turkey

The most important problems faced by mining are the long permit application periods and the obstacle to bureaucracy. In Turkey, mining operating license and operation permits are given by the Mining and Petroleum Affairs Department (MAPEG) affiliated to the Ministry of Energy and Natural Resources (MENR). However, in order to start operation activities today, it is necessary to obtain permissions from 15 to 20 separate units of 8–10 different Ministries. The requirement to obtain permission from such a large number of institutions in order to carry out mining operation activities causes delays and investment losses in the permit process. In order to find solutions to these problems, some questions were asked to mining companies in 2018 through the SurveyMonkey. According to the survey, other permits in Turkey (such as “landownership permit” and “business license and work permit”) are mostly given to mining enterprises in a period of 3–34 months. This indicates that the rule that “permits required for mining operation activities should be completed within 3 months at the latest in the EIA process” does not work in Turkey. In addition, this caused an average investment loss of 21% within the total investment amounts of mining enterprises. This causes Turkey's ranking in the world in investment attractiveness index (IAI) and other categories to decrease or become unstable. Moreover, it causes many mining investors to stop investing in Turkey. Completion of the permit processes within a certain period of time will remove a major obstacle for the mining investor. Mining enterprises require that the operation permit be issued within a period of 2–6 months from the receipt of the operating license. Increasing license security will reduce the risks in mining investments, which will enable the mining sector to develop rapidly.

Potential Partnership of Community-based Management in Supporting The Utilization of Sustainable Resources in Indonesian Coastal Tourism

The application of community-based management (CBM) in managing coastal tourism in Indonesia is still limited to providing short-term benefits, especially for local communities and does not guarantee the sustainability of resources at large. On the other hand, most CBM partnership in Indonesia are still limited to the relationship between the local government and local communities and there is no clear partnership scheme in involving the role of third parties and private sectors that can increase the benefits of implementing CBM. This study aims to review and evaluate CBM policies and implementation in the coastal tourism in Indonesia, identifies the effectiveness of CBM implementations, and suggest an optimal CBM partnership scheme in the coastal tourism in Indonesia. The data used are primary data through questionnaires, interviews, and focus group discussion (FGD). Respondents in this study include members of hotel and restaurant association, CBM managers, local government, and businessmen in the coastal tourism area. This study uses investment attractiveness index to measure the effectiveness of CBM in each coastal tourism destination. The findings shows that the implementation of CBM in Indonesian coastal tourism mostly favored the local communities but draws little attention from bigger investment mainly because there is a lack of clear land regulation set by local government in coastal area.

Assessing the Relationship Between Financial Imbalances and Endogenous Regional Economic Development of Ukraine

The article deals with the methods of evaluating the effectiveness of financial instruments in stimulating regional development. The correlation between financial imbalances and endogenously oriented regional development was evaluated using correlation-regression analysis. The main design indicators for identifying the link between financial imbalances and endogenously oriented regional development are identified: gross regional product; intergovernmental transfers; local budget revenues (tax revenues, non-tax revenues, other revenues) of Ukraine. A correlation matrix was constructed to relate the main indicators of financial imbalances and endogenous-oriented development using the correlation coefficient. The dynamics of capital investments and GRP of Ukraine and the share of capital investments in GRP of Ukraine for the years 2013-2017 are considered. The investment attractiveness of the regions of Ukraine was estimated using the index of investment attractiveness of the regions of Ukraine in 2013-2017. The matrix for revealing the connection between capital investments, gross regional product and volume ofselling products (goods, services) of economic entities of endogenous-oriented development of Ukraine is constructed. It has been investigated that there are several regions that are potentially attractive to investors, namely: Volyn, Donetsk, Chernivtsi, Sumy regions, which are among the leaders and show increasing competition among themselves. It has been determined that capital investment is the most important factor in capital recovery.

Дослідження основних показників економічного розвитку України на ринку інвестицій

The article identifies the components of investment attractiveness of the country, reveals the importance of the main economic indicators of investment support for the development of the economy of Ukraine, in particular, analyzed the following indicators: index of investment attractiveness; indicator of ease of doing business; competitiveness index. The importance of attracting investments into the country's economy is determined, the obstacles to the implementation of economic investment projects are given, the prospects of development in the effective use of investments are considered, the dynamics of the index of investment attractiveness of Ukraine is analyzed. An analytical review of Ukraine's positions in the key ratings, which significantly affect the investment image of the state, was carried out. The article describes the level of investment attractiveness of Ukraine according to the methodology of the European Business Association. The main factors influencing the investment attractiveness are: internal political stability of the country, the established legal framework for entrepreneurial and investment activities, guaranteeing the inviolability of private property, the nature and rate of growth of the economy, the state of the stock market, financial and credit system, capacity and solvency of the internal market, natural resources, socio-cultural factors of the country. The key problems of improving the investment attractiveness are identified. Determines the relationship between the rating and the country's investment attractiveness. Conclusions have been made regarding the country's investment potential. The author's proposals on increasing the investment attractiveness of Ukraine are formulated.

Investment Attractiveness of the Economy of the World Countries in the Polystructural Space of Foreign Direct Investments

The article deals with the theoretical, methodological and practical aspects of ensuring a safety level the investment attractiveness of the world countries economy in the polystructural space of foreign direct investments. In the context of the implementation of investment policy and factors in the field of international investment, an optimization model of the investment attractiveness of the national economy has been developed. The aggregate factors of the investment attractiveness index, which characterize the investment climate, investment activity and the state of economic development of the country, are highlighted. A methodical approach is presented to determine the synergistic impact of foreign direct investment on the country's investment attractiveness indicator. The criteria of normalization of investment attractiveness of the economy of the country by indicators of macroeconomic, monetary and currency status, which are formalized by indicators-stimulators, destimulators and interaction of bilateral boundary constraints are proposed. The criteria of identification of risks and threats of safe and dangerous state of development of the economy of the countries by the methods of prognostic extrapolation of foreign direct investment are taken into account. A comparative assessment of global foreign direct investment flows and global GDP, the value of net sales of cross-border mergers and acquisitions was made. The structure of foreign direct investment by regions of the countries of the world is considered, taking into account their external reserves of investment potential. The indicators of investment attractiveness of the Ukrainian economy and its cooperation with EU countries in terms of the volume of inflow and direct investments are presented. The scenarios for the growth of foreign direct investments in the polystructural space of the world and developing countries are proposed.

Investment security as a component of the state's economic security

The article is devoted to the study of the peculiarities of investment security of the country as a component of economic security, and the development of general recommendations for improving its level. In particular, the dynamics of foreign direct investment of Ukraine is studied and forecasted, the geographical structure of foreign direct investment of Ukraine is assessed, the most attractive types of economic activity in the economy of Ukraine are considered, the dynamics of main macroeconomic investment security indicators is analyzed, namely fixed capital investment investment growth to GDP growth rates, estimated dynamics of the country's investment attractiveness index and highlighted the factors that affect it, indicated what threats foreign investments may pose to national economic security and suggested ways to minimize them.

МЕТОДИЧНІ ЗАСАДИ ОЦІНЮВАННЯ ПОТЕНЦІАЛУ РОЗВИТКУ ТУРИСТИЧНО-РЕКРЕАЦІЙНОЇ СФЕРИ В ЕКОНОМІЦІ РЕГІОНІВ

With the growing level of competition in the global and national tourism markets, the issues of assessing the attractiveness and potential of the tourist and recreational sphere of the regions become especially relevant. There are several approaches to solving these problems, each of which has its advantages and disadvantages, a specific information base and options for application in practice. The purpose of the study is to develop methodological frameworks for assessing the potential of the tourist and recreational sphere of the regions in terms of its attractiveness, which will determine the attractiveness of this area for Ukrainian and foreign investors. The article considers the tools for studying the tourist and recreational potential of the regions, which, in contrast to the existing ones, includes an assessment of the attractiveness of the tourist and recreational sphere of the regions; analysis of the contribution of the tourist and recreational sphere to the economy of the regions; identification of the importance of factors influencing the formation and building of the potential of the tourist and recreational sphere of the regions. The methodological approaches to the integrated assessment of the attractiveness of the tourist and recreational sphere of the regions proposed by the author, in contrast to the existing ones, are based on the identification of the resource structure of the attractiveness of the tourist and recreational sphere in terms of four sub-indices (index of cultural attractiveness, index of attractiveness of recreational resources, index of attractiveness of tourist infrastructure and index of investment attractiveness of tourist and recreational sphere) for the development of sound mechanisms of regional marketing in the Ukrainian and foreign markets of the tourist product. The developed methodological approach is based on the use of the parametric method, which due to the ranking of standardized values of the main indicators of the tourist and recreational sphere of the regions, allows determining their place in the national rating of attractiveness. The practical use of the developed approaches will allow ensuring the efficient use of available tourist and recreational resources, increase the investment attractiveness of the territory for Ukrainian and foreign investors identify problems of potential use and create conditions for overcoming them, which will increase the competitiveness of the proposed tourism products, as well as on the basis of problem-based approach to justify the tools for implementing national and regional targeted programs for tourism and recreation. Key words: region, potential, tourist-recreational sphere, attractiveness, methodical approach, evaluation.

ІНВЕСТИЦІЙНА ПРИВАБЛИВІСТЬ ГАЛУЗЕЙ ЕКОНОМІЧНОЇ ДІЯЛЬНОСТІ РЕГІОНУ

The article outlines the concept of "investment attractiveness of the industry" and its components. Investment attractiveness is an indicator that reflects the profitability or unprofitability of investing money in the selected object. It can be determined both for a specific enterprise, branch of economic activity and for different scales of the territory – area, region, country. The concept of investment attractiveness of the industry is combined, therefore logical that it can be divided into components, which are investment potential and investment risks. The potential of the industry is the possibility of its development if there is enough amount of investment. It shows whether the industry is ready to accept investments. Investment risk indicates the possibility of losing money invested in the selected industry within the territorial formation. We have determined that the investment attractiveness of the industry is its integral characteristic as an object of investment in terms of available potential, opportunities for its development, profitability, conditions and risks of investing money. We proposed evaluation indicators of investment attractiveness and methods of determination the integrated index of investment attractiveness of economic activities in the region. We have selected indicators of investment attractiveness and identified industries that could potentially interest investors. The arrays of evaluation indicators and objects for comparison in the form of a matrix of values are also formed. We calculated individual indexes of indicators that increase the investment attractiveness of the object and indicators that reduce this attractiveness. Considering the individual indexes of indicators, integrated indices of investment objects (branches of economic activity of the region) are determined. We made a rating of potential investment objects and identified the industries with the greatest investment attractiveness. We indicated the directions of increasing the level of investment attractiveness of branches of economic activity of the region.

Инвестиционная привлекательность Республики Крым и ее оценка

In the article, the author calculated the value of the investment attractiveness index for the subjects of the Russian Federation that are part of the southern Federal district. A SWOT analysis of the investment attractiveness of the Republic of Crimea is conducted. Measures aimed at implementing the investment development of the Republic of Crimea are proposed. The analysis of the structure of the gross regional product by type of economic activity is carried out. It is revealed that the largest share in the structure of the regional economy falls on the industrial complex of the Republic of Crimea. The main tasks and measures for the strategic development of the industrial complex of the Republic of Crimea are defined. Assessing the investment attractiveness of the region is of interest to authorities, investors and local business communities

The matrix model for assessing the investment attractiveness of industrial enterprises

The article defines the role of evaluation of investment attractiveness of the enterprise. The main directions of methodological approaches to the assessment of investment attractiveness of the enterprise are given, their peculiarities and purpose are defined. The main disadvantages of methodological approaches to the assessment of investment attractiveness are revealed. It is proposed to use a matrix model to evaluate the investment attractiveness of an industrial enterprise. The necessity of using precisely a matrix model of complex nature to assess the investment attractiveness of industrial enterprises based on the use of quantitative and qualitative factors is substantiated. The main advantages of the matrix model of estimation of investment attractiveness of the enterprise are determined. A methodological toolkit for estimating the investment attractiveness of an industrial enterprise on the basis of a matrix model has been improved, taking into account the current state of domestic industrial enterprises and identifying problematic areas of activity. The matrix model has been supplemented with a matrix of quantitative indicators by a group of property condition indicators, which will allow the investor to take a more objective approach to assessing the investment attractiveness of an industrial enterprise. Quantitative indicators of investment attractiveness are grouped and their marginal evaluation criteria are given. The general index of quantitative characteristic of investment attractiveness of industrial enterprise and possible variants of estimation of its financial condition are determined. The qualitative indicators of estimation of investment attractiveness on the basis of the matrix model are given, they are given weighting coefficients and their boundary intervals are defined. On the basis of qualitative and quantitative indicators, the levels of the generalized index of investment attractiveness of an industrial enterprise according to the matrix model have been formed, which will allow to prove to the investor the expediency of investing in an industrial enterprise. Keywords investment; investment attractiveness; investment potential; enterprise; matrix model.

F�ATURES OF INTERNATIONAL INVESTMENT IN THE ECONOMY OF UKRAINE

Topicality. In the conditions of the economic crisis, in which the economy of Ukraine has been in recent years, the search for reasons that do not allow developing the economy properly and the intensification of areas for attracting investments, including foreign ones, is one of the priority issues. The article aims to explore the level of the investment climate in Ukraine, as well as to analyze the level of attracting foreign investment in the economy of Ukraine. Aim and tasks. Investment attractiveness is largely shaped by the investment climate; therefore, we analyze the investment climate as a combination of legal, financial, political, and socio-cultural factors that predetermine the expediency of investing in the country. Estimated index of investment attractiveness of the country for 2009-2018 and the place of Ukraine in the rating of investment attractiveness of the countries of the world. The article analyzes the volume of foreign direct investment in Ukraine, the structure of investment in the sectoral context and by investor countries of foreign direct investment over the ten-year period from 2010 to 2019. Research results. Based on the study, it was found that the most attractive for foreign investors in the industry, during the analyzed period, remain the industry, especially processing, financial and insurance activities, wholesale and retail trade, real estate operations, scientific and technical activities, information and telecommunications. It is determined that the main investor countries that invest more than 80% of foreign direct investment are twelve of the one hundred and thirty investment countries. The top five investor countries are Cyprus, the Netherlands, Germany, the United Kingdom and the Russian Federation, these countries form more than 60% of all international investments in the economy of Ukraine. The study revealed that almost a third of the international investment in the Ukrainian economy is Ukrainian capital, previously withdrawn from the country in offshore jurisdictions - round - tripping. These countries, apart from Cyprus, include Switzerland and the British Islands Verginsky. Conclusion. The necessity of further formation of modern approaches to the creation of a favorable investment environment in the Ukrainian economy, based on the experience of countries such as Estonia in the taxation of withdrawn capital and world experience, is substantiated. Ukraine should also continue to cooperate with international institutions such as the OECD and develop areas of cooperation with investors under the MLI Convention, which will help reduce the movement of Ukrainian capital to low-tax countries and, accordingly, will affect the increase in investment in the Ukrainian economy.

The Investment Security of the Country: Strategic Goals and Support Mechanisms

It is justified that scientific studies of economic security at country level gain higher importance in the conditions of transformation. The processes concerned with the investment security are gaining special significance, because it is an important condition for the sustainable development of a country. An econometric assessment of the data on incoming foreign direct investment in the national economy and Investment Attractiveness Index of Ukraine is performed. The theoretical framework of the investment security and its strategic goals are investigated. The investment security mechanism is defined by the author as the system of organizational, economic, institutional and legal actions with impact on the domestic economic environment, intended to stimulate domestic and foreign investors to sustain the scopes of economic investment capable to guarantee the extended reproduction of the economy, protection of the national economic interests, effective location, prevention and liquidation of the threats to the investment security of a country. The theoretical construction of the investment security mechanism is defined; its underlying theoretical and methodological principles are extended. It is shown that the organizational and economic mechanism for the investment security represents a multilevel hierarchical system of causally linked organizational and economic mechanisms and their typical groups (entities, objects, principles, methods, instruments etc.), and the ways of their interactions that harmonize economic relations (interests) of the government and business entities and the whole society. It is demonstrated that the investment security needs to be based on the following principles: the elaborated strategy; the clearly formulated national economic interests; the classification of threats; the defined set of indicators and their marginal levels; the security assessment; the applications of tools, ways and methods to ensure security; the elaborated strategy of the investment security. The investment security mechanism is implemented with the goal of guaranteeing the national economic interest. It is shown that the next step in the study has to focus on indentifying the risks and threats to the investment security and building the mechanism for protecting the national interests of a country.

CULTURE-SPECIFIC INVESTMENT ATTRACTIVENESS INDEX: AN ORIGINAL COMPOSITE INDICATOR

This paper presents an original approach to the investment attractiveness of the countries. The author developed an index of investment attractiveness which takes into account indicators of cultural specificity. The specialty literature offers a variety approaches in which different factors that are considered determinants of foreign direct investment (FDI) are analyzed. However, even if cultural are frequently mentioned (and sometimes analyzed), they rarely represent an object of the research of FDI determinants. As for the indexes of investment attractiveness identified in the literature, the situation is even more difficult, and the cultural factors seem to be avoided. The elaboration of the Culture-specific Investment Attractiveness Index through the application of the Principal Component Analysis technique proved to be efficient, the new construct being reliable. Further analysis of the connection between the Index and the volume of FDI attracted confirm its suitability for explaining the localization of FDI in Europe.

Developing the Methodology of Assessing the Potential of Countries to Attract Foreign Direct Investment

To accelerate the transformation process in all spheres of economic and social life the relevance of the adequate assessment of the countries’ investment potential was determined in this article. The innovation process has a high impact on the investment potential of the countries through every sector of the economy. As a result, the countries competitiveness depends on the level of technological innovation. The scientific methodological approach to the estimation of countries' investment potential by the adoption of Hurst exponent was proposed. It is based on the magnitude of the accumulated deviation and reflects the economic essence of the concept of potential. As the time series in Hurst exponent calculation, the theoretical (predictive) values of the global attractiveness index were taken. It was determined by the econometric model of the dependence of the effective feature on five integral indicators of the following groups: infrastructure, science and education, ecology and human health, technology, socio-economic conditions. The integrated indexes for each group were calculated by normalizing the input dataset using the relative method, narrowing it with the relative scatter method and generalization with the arithmetic mean. The five-factor nonlinear regression model of the dependence of the global foreign direct investment attractiveness index on five integrated indexes of the groups was created with the Cobb-Douglas function. The calculations were performed for countries such as United States, United Kingdom, Germany, France, Spain, Estonia, the Czech Republic, China, Poland, the Slovak Republic, Romania, Ukraine. This study shows that at the present moment the Slovak Republic, Ukraine and the Czech Republic have the highest investment potential. Therefore, the value of the proper indicator is equal to 60%. At the same time, the lowest investment potential shows the United Kingdom, Spain and Poland, where unused investment opportunities are less than 40%. The obtained results let us define further development opportunities and establish the mechanism for directing the financial resources to the country. Keywords: Cobb-Douglas production function, FDI, the Hurst exponent, investment appeal, the potential for inward foreign direct investment, regression analysis.