INVESTMENT CLIMATE IN UKRAINE AND ITS DIRECTIONS IMPROVEMENTS

Abstract

The article considers the role of foreign investment in the Ukrainian economy, identifies factors that have a positive impact on the investment climate and outlines the problems of creating a favorable investment environment. The urgency of the topic is to emphasize the problem that arises in everyday life connected with foreign investment, ensuring the high rates of development of economic entities and increasing the competitiveness to a large extent determined by the level of their investment activity and the range of investment activity. Investments play a central role in the country's economic development, they determine the overall growth of its economy. The effectiveness of investment policy depends on the state of production, the level of technical equipment of fixed assets of enterprises, the possibility of structural adjustment of the economy, the solution of social and environmental problems. Investments form the basis of the development of enterprises, individual industries and the economy as a whole. In modern conditions, they are the most important means of ensuring structural changes in the national economy, the growth of technological progress, and the improvement of the quality indicators of economic activity at micro and macro levels. Activation of the investment process is one of the more reliable mechanisms of socio-economic transformation. Now in Ukraine there is a problem of a lack of financial resources. Today, the state is unable to invest in various spheres of the economy due to lack of budget funds. Therefore, among the problems that require an immediate solution, one of the first places is the lack of investment resources in the Ukrainian economy and the creation of favorable conditions for their accumulation. It is worth noting that the processes of economic growth are conditioned by the volume and growth of investments, their structure and qualitative characteristics. Investments, including foreign ones, are not only a mechanism for development, but also a way regulation of the economy through the transfer of capital. At the current stage of development of the market, foreign investments are the main source of obtaining the latest competitive technologies. The purchase of Ukrainian enterprises or their shares, that is, the implementation of merger (acquisition) processes, is considered by foreign investors as an attractive way of investing from those positions that decreases risk due to ineffective management. At the same time, the chances of using best practices in obtaining new technologies and handling in the period of a prolonged crisis are increasing.