TRENDS AND FACTORS AFFECTING THE INVESTMENT ATTRACTIVENESS OF THE UKRAINIAN ECONOMY
Abstract
The study showed the trends of foreign direct investment (FDI) inflows into the Ukrainian economy. The study also aimed to determine the extent to which various factors influence FDI inflows to Ukraine. Previous studies have paid little attention to the impact of social factors on FDI in Ukraine. It is important to study the impact of as many factors as possible, especially social factors that can be quantified. The analysis of the state and trends of FDI in the Ukrainian economy is made using statistical methods, namely, determining the dynamics of growth of FDI in Ukraine, determining the sectoral structure, the structure by types of economic activity, the share of FDI in the Ukrainian economy by regions of destination, etc. To identify the influence of factors on the dynamics of FDI in Ukraine, correlation and regression methods were used. The factors were divided into groups according to their content: macroeconomic, demographic, foreign economic, production, consumption, development of science, education, healthcare, and others. The research period covers 1994-2023. The data for the calculations were taken for four periods: 1996 - 2009 (14 years); 2010 - 2014 (5 years); 2015 - 2019 (5 years), 2020 - 2023 (4 years), due to changes in the methodology of observations by the State Statistics Service of Ukraine. The identified trends show that Ukrainian enterprises with foreign investment focus on the production of goods that are almost saturated on world markets and the service sector. There is an uneven distribution of investments across industries and regions of Ukraine, with their concentration in industrial centers, particularly in Kyiv. The reasons for the uneven trends in foreign investment are the instability of Ukraine's economic development. A significant portion of FDI comes through offshore companies. Econometric analysis has shown that there is a close relationship between social factors and the state of the investment climate in Ukraine, which allows us to establish the form of this relationship. The results of the study can be taken into account when building state and regional programs to increase the level of investment attractiveness in the region and at the enterprise.
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