Evaluation of investment environment security in Ukraine

  • Received October 17, 2018;
    Accepted November 30, 2018;
    Published December 14, 2018
  • Author(s)
    Ganna Blakyta
    ORCID Researcher ID ,
    Nataliia Guliaieva
    ORCID , Iryna Vavdijchyk ,
    Olena Matusova
    ORCID ,
    Anastasia Kasianova
    ORCID
  • DOI
    http://dx.doi.org/10.21511/imfi.15(4).2018.26
  • Article Info
    Volume 15 2018, Issue #4, pp. 320-331
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  • Cited by
    8 articles
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  • 182 Downloads

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This work is licensed under a Creative Commons Attribution 4.0 International License

World economic crises, internal economic and political instability have led to declining the level of investment attractiveness and investment security of Ukraine. The aim of the article is to propose an integral index in order to assess investment environment security and determine factors affecting the investment environment security of Ukraine. The suggested assessment is based on the data of World Bank’s indexes with the following blocks of factors: the availability of economic freedom, favorable organizational conditions for doing business, political and legal freedom, supply of resources and infrastructure development. The assessment of Ukrainian investment environment security and its Western neighbors – the European Union member states – has shown that it has lowest rank and highest volatility in Ukraine. The article identifies a direct statistical relation between the volume of foreign direct investment flows in Ukraine and the indicator of political stability and the absence of violence in the country. The main reasons of investment attractiveness reduction in Ukraine were as follows: conservative attitude of investors towards risks due to political instability, manifestations of violence and terrorism; deterioration of the overall financial situation of enterprises, which are the recipients of investments. The article substantiates that conditions for the investment attraction and secure environment in Ukraine have not been formed yet. The system of indicators and criteria for assessing the level of investment environment security should be expanded.

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    • Figure 1. Direct investments from countries into Ukrainian economy in 2016
    • Figure 2. Variation coefficient of the integral index in Ukraine and its Western neighbors (EU members) for 2010–2016
    • Figure 3. Regression model of dependence of the foreign direct investment flows into the economy upon the indicator of political stability and the absence of violence in Ukraine for 2010–2016
    • Table 1. Integral index of investment environment security of Ukraine and its Western neighbors (EU members) during 2010–2016
    • Table 2. Correlation between the integral index of investment environment security and capital investments in Ukraine for 2010–2016
    • Table 3. Correlation between the integral index of investment environment security and indicators of foreign direct investment into the economy and external debt of Ukraine for 2010–2016
    • Table 4. Correlation between the volume of foreign direct investment flows into the economy and individual indicators characterizing investment attractiveness of Ukraine for 2010–2016
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    Acknowledgment(s)
    The publication support received from Covenant University Centre for Research, Innovation and Discovery (CUCRID) is appreciated

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Investment Management and Financial Innovations
Investment Management and Financial Innovations