Tetiana Kasianenko
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Investment potential forecast and strategies for its expansion: case of Ukraine
Volodymyr Kasianenko , Tetiana Kasianenko , Juliya Kasaeva doi: http://dx.doi.org/10.21511/imfi.17(1).2020.28Investment Management and Financial Innovations Volume 17, 2020 Issue #1 pp. 329-347
Views: 856 Downloads: 91 TO CITE АНОТАЦІЯIn the current conditions of capital market liberalization, developing countries achieve a faster economic growth rate by actively attracting various types of foreign investment. The steady rise in the volume of foreign investment into the country could be achieved only due to its high investment potential.
Therefore, this study aims to develop the methodology for determining the dynamic changes in the country’s investment potential, and its relevant medium-term indicators identify the degree of informational technology influence on Ukraine’s investment potential. It is essential to define the position of Ukraine in the global context in terms of the level of information technologies as the catalyst for investment attractiveness.
The relevant indicators defining Ukraine’s investment potential were forecasted using the Brown-Meyer exponential smoothing model. To calculate the integral indicator of the investment potential, the Hurst exponent was applied. Kohonen self-organizing maps were used to group the countries according to their informational technology parameters.
Ukraine’s investment potential was found to decrease since 2019 and is equal to 0.6493 units in 2020 and 0.6407 units in 2021 due to the decline of the indicators describing the human capital, infrastructure, technological development, and socio-economic conditions. Technology has a significant influence on Ukraine’s investment potential. Its impact is rising each year from 1.70% to 5.17% and 13.04% between 2019 and 2021, respectively. According to the level of technology, Ukraine is in the group with Spain, Romania, and Poland since 2017.
The decreasing investment potential forecast and the positive influence of technology level on it bring the opportunity to form the priority areas for expansion of investment potential based on the adaptation of world instruments to implement the investment policy within national economic conditions.