FOREIGN DIRECT INVESTMENTS AS A FACTOR OF THE STATE'S ECONOMIC GROWTH

Abstract

The article considers foreign investment as a factor of economic growth in conditions of limited own resources. The special characteristics that a foreign investor takes into account when deciding on capital investment are revealed. The model "production growth - investment growth - economic growth" is analyzed. Peculiarities of attracting foreign direct investment to Ukraine are analyzed. The dynamics of foreign investment in the economy of Ukraine is given. The branches of the national economy of Ukraine in which foreign investments attract the most are characterized. The relevance of the topic is to emphasize the problem that arises in everyday life related to foreign investment, ensuring high rates of development of economic entities and increasing competitiveness is largely determined by the level of their investment activity and range of investment activities. The distribution of attracted foreign direct investments by the main regions - recipients of investments of Ukraine is investigated. The necessity of attracting foreign investments in modern conditions is substantiated, the main problems of foreign investment inflow are investigated and the main ways of their solution are offered. The role of foreign investment in the economy of Ukraine is considered, the factors that provide a positive impact on the investment climate are identified and the problems of creating a favorable investment environment are outlined. Investments, including foreign ones, are not only a mechanism of development, but also a way of regulating the economy through the transfer of capital. At the present stage of market development, foreign investment is the main source of the latest competitive technologies. The purchase of Ukrainian enterprises or their shares, ie the implementation of mergers (acquisitions), foreign investors see as an attractive way to invest from those positions that reduce the risk due to inefficient management. The aim of the article is to analyze foreign direct investment as a factor in economic growth of the state. At the present stage of market development, foreign investment is the main source of the latest competitive technologies. The purchase of Ukrainian enterprises or their share, ie the implementation of mergers (acquisitions), foreign investors see as an attractive way to invest from those positions that reduce the risk due to inefficient management. At the same time, the chances of applying best practices in the field of obtaining new technologies and circulating funds during the protracted crisis are increasing. Thus, among the problems that need to be solved immediately, one of the first places is the problem of lack of investment resources in the economy of Ukraine and the creation of favorable conditions for their accumulation. It should be noted that the processes of economic growth are determined by the volume and growth rate of investment, their structure and quality characteristics.