Journal
УКР   ENG
Socio-Economic Problems
of the Modern Period of Ukraine
   



Collection SEPSPU -- sep2020.05.034

Repository of Institute of Regional Research UDC 330.142.2:330.35(477); JEL O11
Malyshivskyi, T., & Stefinin, V. (2020). Zaluchennya inozemnoho kapitalu yak chynnyk zabezpechennya ekonomichnoho zrostannya krayiny [Attracting foreign capital as a factor in ensuring the country's economic growth]. In Sotsial'no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 145 (5) (pp. 34-41). DOI: https://doi.org/10.36818/2071-4653-2020-5-7. [in Ukrainian].
Sources: 17

Authors



Malyshivskyi Taras Volodymyrovych

Postgraduate of the Department of management and business administration of the Vasyl Stefanyk Precarpathian National University

Contacts: taras.malyshivskyi@pnu.edu.ua

Webpages:



Stefinin Volodymyr Volodymyrovych

Ph.D. of Economics, Associate Professor

Associate Professor of the Department of theoretical and applied economics of the Vasyl Stefanyk Precarpathian National University

Contacts: volodymyr.stefinin@pnu.edu.ua

Webpages:

Resume

The article examines the relationship between attracting foreign capital in the form of foreign direct investment and ensuring economic development. In particular, the analysis of the current structure of the economy is indicated, its raw material character is pointed out and, based on other researches, the necessity of its reform is substantiated, as Ukraine will remain a low-income country if the current trend continues. This is due to the fact that countries with a raw material structure of the economy are characterized by a low level of economic complexity, and therefore are not able to generate high levels of income in society. As a result, the expediency of stimulating the attraction of investment resources into the country’s economy, in particular in the form of foreign direct investment, is substantiated. The dynamics of attracting foreign direct investment to Ukraine and a number of other countries for the period from 1991 to 2019 is analyzed and the key negative factors that deter foreign investors from investing in the economy of Ukraine are indicated. As a result of the analysis, divergent trends in the economic development of Ukraine and other analyzed countries (Poland, Czech Republic, Slovakia, Turkey, Romania, Hungary) were identified, which contributed to economic stagnation and restrained economic growth and development. Taking into account the analysis, as well as based on the concept of investment and innovation growth, it is proposed to use the experience of Israel to improve the country’s investment attractiveness and stimulate foreign capital inflows by adapting the Yozma program to Ukrainian realities. According to our estimates, the adaptation of this program to the Ukrainian economy will attract about $ 350 million over a five-year period of venture capital alone. In addition, programs such as YOSMA can also be implemented at the regional or even local level. We believe that the use of this tool will improve the investment attractiveness of the country, as well as provide sufficient financial resources to modernize the domestic economy and ensure rapid economic growth.

Keywords:

economic development, economic development management, foreign direct investment, investment attractiveness, Yozma program, decentralization

References

    
  1. Avnimelech, G., Schwartz, D., Bar-El, R. (2007). Entrepreneurial High-tech Cluster Development: Israel’s Experience with Venture Capital and Technological Incubators. European Planning Studies, 15(9), 1181-1198. DOI: https://doi.org/10.1080/09654310701529078
  2. Byesyedina, O., Khorunzha, M., & Shepotylo, O. (2019, Aug 07). Chy mozhe Ukrayina povtoryty shlyakh aziys’kykh tyhriv? I chy vzahali yiy varto turbuvatysya pro tse? [Can Ukraine follow the path of the Asian tigers? And should she worry about it at all?]. VoxUkraine: Website. Retrieved from https://voxukraine.org/uk/chi-mozhe-ukrayina-povtoriti-shlyah-azijskih-tigriv-i-chi-vzagali-yij-varto-turbuvatisya-pro-tse [in Ukrainian].
  3. Gross domestic savings (% of GDP) (2020). The World Bank: Website. Retrieved from https://data.worldbank.org/indicator/NY.GDS.TOTL.ZS
  4. Vasylchenko, S. M. (2018). Eksternal’nyy ekonomichnyy rist [External economic growth]. Visnyk Prykarpats’koho universytetu imeni Vasylya Stefanyka. Seriya: Ekonomika – Bulletin of Vasyl Stefanyk Precarpathian University. Series: Economics, 13, 21-25. [in Ukrainian].
  5. Volodymyr Hroysman pro zapusk Fondu startapiv: Zapochatkovuyemo shche odyn instrument pidtrymky biznesu [Volodymyr Groysman on the launch of the Startup Fund: We are launching another tool to support business] (2018, Jul 11). Government portal: Website. Retrieved from https://www.kmu.gov.ua/news/volodimir-grojsman-pro-zapusk-fondu-startapiv-zapochatkovuyemo-shche-odin-instrument-pidtrimki-biznesu [in Ukrainian].
  6. Hlukha, H. Ya. (2014). Investytsiyi ta yikh vplyv na ekonomichne zrostannya. In Yevropeys’kyy vektor ekonomichnoho rozvytku: Ekonomichni nauky [Investments and their impact on economic growth. European vector of economic development. Economic sciences]: Vol. 1(16) (pp. 39-47). Retrieved from http://nbuv.gov.ua/UJRN/ever_2014_1_6 [in Ukrainian].
  7. Holyuk, V. Ya, & Manzyk, Zh. V. (2017). Suchasnyy investytsiynyy klimat Ukrayiny: analiz ta shlyakhy pokrashchennya [Modern investment climate of Ukraine: analysis and ways to improve]. In Aktual’ni problemy ekonomiky ta upravlinnya [Actual problems of economy and management]: collection of scientific works of young scientists: Vol. 11. Retrieved from https://ela.kpi.ua/handle/123456789/22545 [in Ukrainian].
  8. Senor, D., & Singer, S. (2011). Krayina startapiv. Istoriya izrayil’s’koho ekonomichnoho dyva [Start-Up Nation: The Story of Israel’s Economic Miracle]. Kyiv: Yakaboo Publishing. [in Ukrainian].
  9. Zadoya, A. O. (2018). Mizhnarodni reytynhy ta pryami inozemni investytsiyi [International ratings and direct foreign investments]. Akademichnyy ohlyad – Academic Review, 1, 73-79. Retrieved from http://nbuv.gov.ua/UJRN/ao_2018_1_10 [in Ukrainian].
  10. Lerner, J. (2010). The future of public efforts to boost entrepreneurship and venture capital. Small Business Economics, 35, 255-264. DOI: https://doi.org/10.1007/s11187-010-9298-z
  11. Novikov, V. (2019, Aug 26). Krayina proyidannya: Chomu vlada ne stymulyuye ukrayintsiv zaoshchadzhuvaty? [The country of eating: Why the government does not encourage Ukrainians to save?]. Economic truth: Website. Retrieved from https://www.epravda.com.ua/publications/2019/08/26/650910 [in Ukrainian].
  12. Foreign direct investment, net inflows (BoP, current US$) (2020). The World Bank: Website. Retrieved from https://data.worldbank.org/indicator/BX.KLT.DINV.CD.WD
  13. Pustovoyt, O. V. (2017). Ekonomichne zrostannya Ukrayiny: problemy ta mozhlyvosti pryskorennya [Economic growth of Ukraine: problems and possibilities of acceleration]. Ekonomika i prohnozuvannya – Economy and forecasting, 4, 71-92. Retrieved from http://nbuv.gov.ua/UJRN/econprog_2017_4_6 [in Ukrainian].
  14. Repko, M., & Hamanyuk, O. (2017, Sep 14). Shcho zavazhaye inozemnym investoram v Ukrayini [What hinders foreign investors in Ukraine]. LB.ua: Website. Retrieved from https://ukr.lb.ua/economics/2017/09/14/376427_shcho_zavazhaie_inozemnim_invest oram.html [in Ukrainian].
  15. World Integrated Trade Solutions. Countries trade summary for 1994-2018 (2019). The World Bank: Website. Retrieved from https://wits.worldbank.org/Default.aspx?lang=en
  16. Simkiv, L. Ye., & Dalyak, N. A. (2016). Vplyv investytsiynykh protsesiv na ekonomichne zrostannya v Ukrayini [Influence of investment processes on economic growth in Ukraine]. In Naukovyy visnyk Mizhnarodnoho humanitarnoho universytetu. Seriya: Ekonomika i menedzhment [Scientific herald of the International Humanities University. Series: Economics and Management]: Vol. 18 (pp. 108-112). Retrieved from http://nbuv.gov.ua/UJRN/Nvmgu_eim_2016_18_24 [in Ukrainian].
  17. Skorobohatova, N. Ye., & Potapova, V. P. (2018). Rol’ investytsiy u formuvanni ekonomichnoho zrostannya Ukrayiny [The role of investment in the formation of economic growth of Ukraine]. In Aktual’ni problemy ekonomiky ta upravlinnya [Actual problems of economy and management]: Collection of scientific works of young scientists: Vol. 12. Retrieved from https://ela.kpi.ua/handle/123456789/24600 [in Ukrainian].


Web-master P. Popadyuk