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УДК 330.142.2(477.54)

DOI: https://doi.org/10.36887/2415-8453-2019-3-9

Larisa Naumova
Doctor of Economics, Professor, Professor of Department of Foreign Economic Activity
Kherson National Technical University
Oleksandr Naumov
Doctor of Economics, Professor, Professor of Department of Management Department
Kherson National Technical University
Olga Naumova
Doctor of Economics, Professor, Professor of Department of Management Department
Kherson National Technical University

JEL classification: E22; F21; G24; O20

Abstract

Introduction. Attracting foreign investment in the country’s economy is a priority for its economic development and strengthening independence. Ukraine needs to form qualitatively new ways and methods of developing international investment activity. They should be based on a continuous study of international investment processes and their relationships.

The purpose of the study is to assess the current state, determine the conditions, ways and mechanisms of attracting foreign investment in the country’s economy.

Results. In the article we have done an analytical study of the volume and structure of foreign investment in the economy of Ukraine. The negative phenomenons in the investment process and their main causes were identified. The main problem is the lack of innovative investments. The composition of the criteria for evaluating the effectiveness of investment was determined. The factors which determine the attractiveness and prospects of investment were identified: macroeconomic; regulatory policy; favourable market entry; openness of the economy; tax system; inflationary stability; accessability of resources; political stability. The composition of investment risks was determined: low rates of reform; insufficient protection of the rights of foreign investors; imperfection of the legislative base; corruption. Recommendations on increase of foreign investment were formulated: providing legislative guarantees for investors; observance the legal rights of investors and decision of the disputes; stabilization of the legal base; information support; stabilization of the political situation, etc.

Conclusions. Difficult economic conditions do not guarantee a sufficiently high profitability of projects to cover country-related risk. To improve the investment climate, it is necessary to reduce the number of formal procedures, their cost and time.

Key words: foreign investment, national economy, risks, state guarantees.

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The article was received 12.06.2019