Конференция «Сучасні тенденції інноваційного розвитку держави в сфері соціально-економічних наук» (13-14 марта 2014г.). Поступившие работы

Tertyshna O. O., PhD Nezhenets E. V., PhD Privarnikova I. Y.

Oles Honchar Dnipropetrovsk National University, Ukraine

THE INVESTMENT CLIMATE IN UKRAINE

Direct foreign investment play an important role in the development of the economy of Ukraine. Foreign investments attraction encourages activation of investment process, introduction of new technologies, using of front-rank and foreign experience, development of small and midsize businesses, growth of the investment potential of territories [1].

Net foreign direct investment in Ukraine in 2013 amounted to $ 2,860 billion [2].

Most priority industries for the most developed countries – investors can be seen from the chart [1] (Table 1):

Table 1

Country

Industry in order of importance for investors

U.S.A.

1. Mechanical engineering and metallurgy.

2. Medical equipment and pharmaceutics.

3. Agriculture

Germany

1. Mechanical engineering and metallurgy.

2. Food industry.

3. Light industry.

4. Transport, telecommunications, construction industry

The United Kingdom of Great Britain

1. Mechanical engineering and metallurgy.

2. Food industry.

3. Domestic and foreign trade

Today the Ukrainian government is making real steps to improve the investment climate in the country [3].

Positive moment is the effectiveness of the anti-corruption legislation, including recent establishment of the anti-raider commission [3].

Among the positive points of our economy, there is improvement of registration of physical persons and legal entities in Ukraine. In particular the legal entity now can be registered for three days [3].

The other positive fact is that the agriculture sector of our country in the nearest twenty years will enter three most economically quickly developing countries in the whole world. Agriculture by 2020 will grow almost on one third, increasing production volumes to 29 % [1]. 

The swift increase of investment streams in a real estate market of Ukraine. All segments of the real estate market in Ukraine are in the process of growth and are far from satiation. It allows investors to count on the rapid return of investments and high incomes. The considerable volumes of foreign funds are concentrated in the sphere of hotels and restaurants, trade-entertaining centers and in the market of the real estate leasing [1].

Experts also name production of competitive goods on global markets interesting for investors (for example, products of steel-making industry or chemical industry) [1].

According to the results of International Finance Corporation (IFC) annual rating research the group of the International Bank «Doing business 2013» Ukraine improved positions on 15 points, rising from 152 places to 137 [1].

Table  2. Rating of «Doing Business» as index of fostering the investment climate [1]

Rankings

2013

2012

Change in ranking

Easiness of Doing Business

137

152

+ 15

Procedures (number)

9

9

- 2

Time (days)

22

24

+2

Cost (% of income per capita)

1,5

4,4

- 2,9

Paid-in Min. Capital (% of income per capita)

0,0

1,8

- 1,8

Dealing with Construction Permits

183

182

- 1

Procedures (number)

20

20

Without change

Time (days)

365

365

Without change

Cost (% of income per capita)

1262,6

1462,1

- 199,7

Resolving Insolvency

157

158

+1

Time (years)

2,9

2,9

Without change

Cost (% of estate)

42

42

Without change

Recovery rate (cents on dollar)

8,7

8,9

-0,2

The Ministry of Finance assures that during next few years Ukraine will enter the hundred best countries in lightness of business conduction. The Government program of economy activation on 2013–2014 is developed for it. This Program is worked out for the purpose of introduction of the new modernization methods the priority industries of the economy in the nearest two years [1].

This Document envisages realization of structural changes in economic and social life of Ukraine by the increase of efficiency state administration, modernization of the basic industries economy, creation of the favorable economic environment for the development of business and private initiative [1].

Also according to Antonio Somma, the head of the Organisation for Economic Cooperation and Development (OECD) Eurasia Competitiveness Programme, the OECD drew up recommendations by selected branches and formed them in special allowances. Thus, some part of the recommendations relating on the policy of State-Owned Enterprises (SOEs), have been taken into consideration and is being implemented [4].

For the agricultural sector the OECD recommends improving the crediting access to small and medium enterprises. This may help to improve the product quality and increase overall productivity [4].

In the renewable energy sector an attractive environment must be created for the private sector, as well as optimize the licensing and access to power grids [4].

Among other attractive sectors for investment, the food industry and the retail trade system were mentioned [4].

The list of references:

1. MAYGER [Electronic resource]. – Mode of access: http://www.mayger.org/en/ukraine-market-review/the-investment-climate-in-ukraine -for-2013/

2. Бизнес [Electronic resource]. – Mode of access: http://www.business.ua/articles/money/ Pritok_pryamyh_inostrannyh_investiciy_v_Ukrainu_v__g_umenshilsya_v__raza-64671/

3. ForUm [Electronic resource]. – Mode of access: http://www.en.for-ua.com/news/2013/ 10/18/155629.html

4. АКФ [Electronic resource]. – Mode of access: http://www.acf.ua/eng/news/oecd-ukraines-investment-climate-is-good-on-paper-all-the-matter-in-the-implementa tion-of-this-plan