Investment Climate in Ukraine’s Economy: Current Status and Directions of Improvement

• Main Authors: Zelenko Oleksandr O., Gutsan Tetiana G., Hura Anna O.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2020-01-01
• Series: Bìznes Inform
• Subjects: investment climate; components of investment climate; budget-fiscal policy; structural and investment policy; monetary policy; countering corruption.
• Online Access: https://www.business-inform.net/export_pdf/business-inform-2020-1_0-pages-100_107.pdf

The article is aimed at analyzing the investment climate in Ukraine’s economy and possible ways to improve it. To this purpose, components of the investment climate in Ukrainian economy are considered as follows: macro-economic, micro-economic, legal, political, social, and financial-credit. On the basis of an analysis of the components of investment climate, it is concluded that, despite the presence of a number of significant advantages, it is generally unfavorable to investors. This state of affairs is largely related to the economic policy that has been effective in Ukraine for a long time. Ways to improve the investment climate in the economy are proposed, which include: development and implementation of a structural-investment policy (defining long-term priorities for development of the national economy and elaborating effective stimulation measures); budget-fiscal policy measures (reducing the number of taxes, simplifying their administration), monetary policy (transition to stimulative monetary policy); reducing bureaucratic procedures on the way to attracting investments, countering corruption (full start-up of anti-corruption bodies and organizing their efficient cooperation); reform of the judicial system, the SSU, the police, etc. Attention is drawn to the debt policy of the State as a factor that negatively affects the investment attractiveness of the national economy. The importance of investments for development of the economy, fundamental changes in the global economy in view of the fourth industrial revolution make relevant further research in the dynamics of the components of the investment climate of Ukraine’s economy and analysis of economic policies aimed at improving it.