Investment Climate In Ukraine Research Articles

Ukraine’s position in international investment ratings

The article reasons that foreign direct investments play a crucial role in the economy of every world country, since they ensure the effective functioning of economy and economic growth. It is found that the volume of foreign direct investments into the economy of a certain country depends on the investment climate, whose main indicator is the position of countries in international investment ratings that allows us to evaluate the investment climate, possible investment risks and the degree of investment safety.The subject of the study is the investment climate in Ukraine and its position in the main international investment ratings. The research methods used in the study include theoretical generalization, comparison, abstraction, analysis and synthesis.The paper presents a list of the main international investment ratings that should be taken into account by potential investors while analyzing the investment climate and investment image of the country and considering the practicality of investing into the economy.The current position and dynamics of Ukraine’s rankings in these ratings are analyzed: according to Global Competitiveness index – 81st position among 137 countries; according to index of Economic Freedom – 150th position among 180 countries; according to Ease of Doing Business index – 76th position among 190 countries; according to Investment Attractiveness index – 134th out of 174 countries. Based on the analysis of Ukraine’s position in the main international investment ratings, it is concluded that the investment climate in Ukraine is not favorable; therefore, Ukraine needs to take measures to improve its investment climate and its positions in these ratings in order to attract foreign investment to the required extent.

Impact of Rating Evaluation on Development of Investment Climate: Case of Ukrainian Economy

Methodical approaches to the investment climate evaluation have been formed. Methodological tools for assessing the investment attractiveness of the economy have been classified. To create a database to select the most important methods of assessment of the investment climate should undertake a comparative analysis on the target group of potential investors, the depth of research, the frequency of assessment of the investment climate, purpose assessment of the investment climate. International ratings are effective tools that help reduction information asymmetry, and a large number of methods of ranking permit the investor to receive information on all aspects of the investment attractiveness of the state. Rankings are shaping the image of the state, and ignoring the results of the ratings can lead to financial isolation of the state. Information on the methodology of the ratings in most cases is transparent, so the domestic state institutions have the ability to affect the future results of the ratings in the case of related reforms. However, there is no unified model of investment climate evaluation of the national economy, which directly affects the state of the investment climate of Ukraine's economy and the volume of foreign capital in the state. Rating evaluation of the investment climate for the Ukrainian economy has been offered.

General theoretical foundations of the state’s participation in corporate relations

New approaches to the economy in Ukraine requires not only reforming the private sector, but also to determine the optimal model of state involvement in economic relations. Government policy within the new policy of state property management involves the implementation of corporate governance standards according to the OECD, the appointment of recognized experts in leadership positions in key state-owned companies, namely: 1) implementation of effective management of state property; 2) attracting international auditing companies to audit the key state-owned companies; 3) removal of public officials on the management of public companies. The aim is to establish assumptions of state participation as a complex legal and political organization of society in corporate relationships that provide for a combination of economic and legal foundations of the rights of the public corporation's legal interests. The initial phase of the proposed study is to establish the functions of the state, allowing it to establish feasibility of participation in corporate affairs. Thus, Article 17 of the Constitution of Ukraine stipulates that the most important functions of the state, a matter of the Ukrainian people is to protect the sovereignty and territorial integrity of Ukraine, to ensure its economic and informational security. Further analysis of the Constitution of Ukraine does not provide the possibility to establish the form and means of achieving economic security. Thus, there is the question of whether state involvement in economic entities as a strategic goal. On the other hand, such participation will contribute to getting the state profits (dividends) will ensure the preservation of key economic facilities, guarantee investments, etc. Today it is difficult to assess the impact of the implementation of state corporate rights and socio-economic effects of corporatization not only individual state enterprises and even entire industries. The model state corporate rights management can be performed either by direct control of the state through the competent authorities or by transferring the management rights of a legal entity on a competitive basis. The first model is not without drawbacks, in particular the complexity of decision-making, combining in one body corporate rights of legal entities in different sectors like. General principles of state involvement in corporate relations based on the recognition of a member state of economic society, the most appropriate type of which is a public company. Development and improvement of internal means of regulation of corporate relations in joint stock companies should serve as a model for the activities of other corporations, because some legal requirements are not met it is in the public sector. Because of the nature of the state as a complex political-legal phenomenon should introduce control mechanisms companies’ public institutions. Finally, the legislative regulation of corporate relations and public practice of corporate regulations should create a favourable investment climate in Ukraine.

The study of the investment policy formation of the enterprises as an important factor of their strategic development

Types, peculiarities of investments in the context of transition to an innovative model of economic growth of the country for the short term are specified. The state of the investment climate in Ukraine is studied, the ways of its improvement are defined, the effect of an investment policy on the formation of a corporate development plan is justified. The analysis of an investment activity in Ukraine revealed that macroeconomic indicators are still on the periphery of global investment flows. It was found that the main reasons of decrease in investment activity in Ukraine are: an unfavorable investment climate; inadequate legal framework; poor-quality arrangement of investment projects and programs, as well as their ineffectiveness; imperfection of investment instruments and investment market. Some suggestions concerning the formation of innovative and investment potential using the equity capital of companies are recommended. The principles of the investment policy of enterprises under the conditions of modern management paradigm are stated: the matching principle, the principle of interest and communication skills, the principle of flexibility and alternative, innovative principle, the principle of minimizing of the investment risk. The suggested in the research principles of investment policy make the investment policy of enterprises the tool for enhancement of efficiency of its functioning as a whole for the long term. This study contributes to the definition of the main directions of investment policies of enterprises of Ukraine.