THE ROLE OF DIGITALIZATION IN STRENGTHENING THE INVESTMENT POTENTIAL OF THE EU AND UKRAINE

Abstract

The article provides a detailed examination of the impact of digitalization on the investment potential of the European Union and Ukraine, emphasizing its role as a key component in enhancing economic attractiveness and overall development. The author conduct an in-depth analysis of how digital technologies contribute to the creation of new markets, optimization of enterprise strategies, and reduction of administrative barriers, all of which collectively facilitate the attraction of both foreign and domestic investments. Drawing on the evaluation of successful digitalization examples in EU countries such as Denmark and the Netherlands—where digital technologies have become a driving force for economic growth—the authors justify the necessity of strengthening and modernizing Ukraine's digital infrastructure. The article meticulously identifies the primary challenges and obstacles hindering the digitalization of the Ukrainian economy, including uneven access to digital technologies among the population and businesses, and the imperative need for support and stimulation from government bodies. The findings of the study demonstrate that digital transformations possess significant potential for increasing Ukraine's investment attractiveness. The authors highlight that active implementation of digital technologies can not only create a favorable investment climate but also stimulate economic growth, enhance production and management efficiency, and promote Ukraine's integration into the European economic space and global digital markets. Furthermore, the article discusses strategies and recommendations for overcoming existing barriers to digitalization. Specific measures are proposed to improve access to digital technologies in remote and rural regions, develop e-government services to increase transparency and efficiency in public administration, and support innovative initiatives and startups. Special attention is given to the necessity of close collaboration between the public and private sectors, international organizations, and investors for the successful implementation of digital projects and programs. In conclusion, the author assert that digitalization is an integral and critically important part of modern economic development, playing a decisive role in enhancing Ukraine's investment potential. The article's recommendations are aimed at forming a comprehensive and holistic digital development strategy that will enable Ukraine to fully leverage the advantages of the digital economy, accelerate innovation processes, and strengthen its competitiveness in the international investment arena.