PROBLEMS AND PROSPECTS OF ATTRACTING FOREIGN DIRECT INVESTMENTS TO THE METALLURGICAL INDUSTRY OF UKRAINE
Abstract
Attracting foreign direct investment has a positive effect on the economic situation of the country and its international status, so it is necessary for the state to achieve investment attractiveness both at the country level and at the level of its regions. The factors of investment attractiveness are considered in the paper. It is noted that economic and political factors, business conditions, as well as regional factors are affecting investment attractiveness. The dynamics of Ukraine's international investment position for 2015-2018 has been investigated. The dynamics of FDI inflow and outflow are analyzed. In particular, the dynamics and possible causes of investing countries for the period 2012-2018 were examined and key partners were found for attracting foreign direct investment. It should be noted that the main investors in the economy of Ukraine are EU countries. An important task of the study was to identify the reasons for investing in the Ukrainian economy. The territorial location of investment capital is analyzed to identify the most attractive industries and territories for investment. The article analyzes the current state of the metallurgical industry of Ukraine and assesses its role in the development of the domestic economy. This helped to reveal that metallurgical production is one of the most competitive areas of the domestic economy. Also, the activity of metallurgical industry was considered, which made it possible to identify its problematic places and at the same time to determine the level of its profitability and to decide on the possibility of foreign investment to it. By analyzing the volume of foreign direct investment, the main investor countries and the reasons for investing in the metallurgical industry were identified. The main obstacles to increasing the level of investment attractiveness of metallurgical enterprises have been identified, in particular, such as: technological backwardness, high energy and resource intensity, low environmental characteristics of products, underdevelopment of intra-industry and inter-branch cooperation. As a result, ways of solving the problems affecting the attraction of foreign direct investment in the metallurgical sector of Ukraine were proposed.
References
Ershov, М. (2002). Pro finansovi mekhanizmi ekonomichnogo zrostannia [On the financial mechanisms of economic growth]. Pytannia ekonomiky – Economic question, 12, 4-16 [in Ukrainian].
Eurostat. Retrieved from: http://ec.europa.eu/eurostat/web/products-datasets/-/tipsii10 [in English].
Derjavna slugba statistiki [State Statistics Service]. ukrstat.gov.ua. Retrieved from: http://www.ukrstat.gov.ua/ [in Ukrainian].
Markevich K.L. (2015) Potochniy stan ta perspektivu pryamogo inozemnogo investuvannia v ekonomiku Ukraini [The current model of the prospect of direct foreign investment in the economy of Ukraine]. Science News of the Mukachiv State University. 2(4), Vol. 1, pp. 249-254 [in Ukrainian].
Ogliad svitovoii ekonomiki. Umovi vedennia biznesu zminuutsia: nashi prognozi na 2013 r. [Inspection of the economy. Understand the knowledge of business: our forecasts for 2013]. (n.d.). pwc.com Retrieved from: http://www.pwc.com/en_UA/ua/ [in English].
Khignyak O.S. (2017) Suchasniy stan metalurgiynih pidpriemstv Ukraini: problemy i perspektivy rosvitku [The current mill of metallurgical enterprises of Ukraine: problems and prospects of development]. Naukovii visnyk – Young scientist, 5(45), 762-767. Retrieved from: http://molodyvcheny.in.ua/files/journal/2017/5/170.pdf [in Ukrainian].
Kulickiy S. (2016) Ukrainska chorna metalurgiya: stan, problemy, perspektyvy [Ukrainian ferrous metallurgy: state, problems, prospects]. Ukraina: podii, fakty, komentari – Ukraine: events, facts, comments. 5, 44-65. Retrieved from: http://nbuviap.gov.ua/images/ukraine/2016/ukr5.pdf [in Ukrainian].
Sait derjavnoi slujbi statistiki [State Statistics Service of Ukraine]. ukrstat.gov.ua. Retrieved from: http://ukrstat.gov.ua/ [in Ukrainian].
Sidenko V.R. (2008) Globalizaciia – evropeiskaia integraciia – economicheskoe razvitie: ukrainskaia model [Globalization – European integration – economic development: the Ukrainian model.] Globalizaciya i ekonomicheskoe razvitie – Globalization and economic development. Kyiv: Fenix [in Russian].
Prioritety investytsiynogo zabezpechennia strukturnykh reform u promyslovosti Ukrainy. [Priorities of investment support for structural reforms in Ukrainian industry]. (n.d.) niss.gov.ua. Retrieved from: http://www.niss.gov.ua/content/articles/files/strukt_ref1c985.pdf [in Ukrainian].
