Building favorable investment climate for economic development (original) (raw)
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Investment Climate Rating Evaluation: The Case of Ukrainian Economy
Financial Risk and Management Reviews, 2017
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. Contribution/ Originality: This study uses new estimation methodology of investment climate in the national economy, which based on analysis and classification of approaches and tools that are used to investment climate, investment attractiveness, business environment rating evaluate, and are directed to information sparseness reduction, target orientation of investment climate management.
Baltic Journal of Economic Studies, 2017
The purpose of the paper is to determine the procedure for calculating the investment climate favourableness and, based on its findings, study the nature of the investment climate in Ukraine. Methodology. In the paper, there were used the following methods: the dialectical method (understanding the investment process and its characteristics as the investment climate components); scientific abstraction, theoretical and empirical analysis (characteristics of the investment climate components and definition of their interconnection based on the corresponding scheme); method of modelling (guiding the formulas for calculating the main investment climate components based on generalizing the theoretical research studies of Ukrainian and foreign researchers); method of system analysis (defining issues of the investment climate favourableness in the country as an integral economic system on the example of Ukraine); statistical methods (grouping, comparison, dynamic series), used in the study of dynamics of main indicators of economic and social development of Ukraine, on the basis of which the dynamics of the calculated ratio of the investment climate favourableness in Ukraine was analysed. Results of the research study showed that the investment climate is determined on the basis of the ratio of the investment supply and investment demand. The supply of investment resources is an attractive factor for both national and foreign investors in one or another branch of economy, determining the level of investment risks, on which depends the socio-political and economic security of investors. At the same time, the investment demand characterizes the investment intensity level, which reflects the growth rate of investment inflows into one or another branch of the country's economy. An excess of the investment demand over investment supply in the country reflects the unfavourable investment climate of the country due to the lack of incentives for investment recipients to implement investment projects, and also unregulated interests between the subjects of investment process (state, potential investors, and recipients of investments). In Ukraine during the period from 2012 to 2016, the investment climate was unfavourable, as the ratio of the investment climate favourableness was significantly lower than the threshold. Practical implications. The calculation of the country's investment climate favourableness is necessary to be made in order to reflect the effective use of indicators of economic and social development by the state. It is to say the efficient allocation and distribution of the gross domestic product, based on indicators of the amount of wages of hired workers and amount of net taxes on production and imports. According to the appropriate situation, the state should develop a budget plan for the next year with the benchmark for allocating budget expenditures in some sector and providing investment support. In Ukraine, the improvement of the investment climate requires the introduction of changes in tax legislation regarding the privileges for certain types of investors and innovation-active enterprises, and also provisions defining the transparency of the investment process. Value/originality. The ratio of the investment climate favourableness (R IC) should be at least 0.1, where R IC ≥ 0.1 means that the investment climate is favourable, R IC ≥ 0.1-neutral, R IC ≤ 0.1-unfavourable, considering that the threshold of the investment attractiveness level (L IA) is 10%, investment intensity level (L II)-100%.
Investment Management and Financial Innovations, 2018
In the period of Ukraine’s integration into the European economic space, one of the basic conditions for achieving compliance with the European community requirements is the formation of favorable investment environment. In view of this, the aim of the article is to analyze the economic preconditions for the unification and adaptation of the investment mechanism in the period of Ukraine’s integration into the economic euro area, and to develop recommendations for unification of institutional support for the formation of the investment environment in Ukraine. In the course of the study, the system approach and the method of system analysis and synthesis are the basis. Based on the analysis of the activities in Poland, it is outlined that the conditions for their achievement of high rating indicators are the legally regulated mechanism for promoting investment, which includes relevant institutions, low tax rates, transparency and ease of doing business. The comparison made on this bas...
Impact of Rating Evaluation on Development of Investment Climate: Case of Ukrainian Economy
International Letters of Social and Humanistic Sciences, 2016
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 r...
Determinants of investment sphere development in the context of the modern economic paradigm
Publishing House “Baltija Publishing”, Latvia., 2019
The aim of the article is to illuminate the modern paradigm of the globalization economic environment, which shows the gradual end of the decade of "crisis-free" growth of the world economy and, accordingly, the nearing to the next global economic crisis; to cover the importance of attracting investment and implementing a specific national industrial policy as one of the key factors of development; to outline the problems of prevention, forecasting and analysis of risks arising in the investment sphere in the context of providing conditions for sustainable development of the Ukrainian economy. The subject of the study is: the monitoring of investment sector indicators that determine the potential of economic development and provide an analytical assessment of the risks posed in the investment sphere in the context of ensuring the conditions of sustainable development of the Ukrainian economy. Methodology. The article uses the complex approach with the application of methods of simulation and econometric modeling for analytical estimation of gross fixed capital formation as a key investment indicator in the current economic conditions of Ukraine. Results. The conducted study clearly demonstrates not only the presence but also the obvious deepening of the imbalance between the current state of attracting foreign investments and actual needs in technological and physical renewal of the production sphere. The consequence is a real threat of loss of potential for economic development. Some measures have been identified to improve the investment climate, and the key ones are the provision of state support for reforming the Ukrainian economy in terms of improving the investment climate and stimulating the innovative potential of entrepreneurial activity. The practical implications of this study are to identify the lack of innovation strategy, which deepens Ukraine's technological backwardness compared to developed countries in general, and the EU countries, in particular, and keeps the inefficient and destructive natural-production base of Ukrainian economy. Value/originality. This research was carried out within the framework of the implementation of a scientific paper of the
Trends and Priorities of International Investment in the Economy of Ukraine
Scientific Journal of Polonia University, 2016
The trends and priorities of international investment in Ukraine's economy have been identified. The basic directions of enhancing the inflow of foreign capital in Ukraine have been analyzed. The strategic ways of attracting and effectively using foreign investment for the economic development of Ukraine have been proposed.
International Journal of Management (IJM), 2020
The article is devoted to the management of the investment attractiveness of the state economy as a component of the development of international business. The investment attractiveness of Ukraine is considered. It is shown that the analysis of investment attractiveness is advisable to carry out by region, which can be both geographically integrated regions and industrial units. The main factors affecting the investment attractiveness of the region were identified, among which one of the leading places is infrastructure. A methodology for measuring the investment attractiveness of the region was proposed and tested in 6 regional regions, as well as measures aimed at increasing investment attractiveness were proposed.