Anastasiya Ilyina


The purpose of the paper is to determine the procedure for calculating the investment climate favourableness and, based on its findings, study the nature of the investment climate in Ukraine. Methodology. In the paper, there were used the following methods: the dialectical method (understanding the investment process and its characteristics as the investment climate components); scientific abstraction, theoretical and empirical analysis (characteristics of the investment climate components and definition of their interconnection based on the corresponding scheme); method of modelling (guiding the formulas for calculating the main investment climate components based on generalizing the theoretical research studies of Ukrainian and foreign researchers); method of system analysis (defining issues of the investment climate favourableness in the country as an integral economic system on the example of Ukraine); statistical methods (grouping, comparison, dynamic series), used in the study of dynamics of main indicators of economic and social development of Ukraine, on the basis of which the dynamics of the calculated ratio of the investment climate favourableness in Ukraine was analysed. Results of the research study showed that the investment climate is determined on the basis of the ratio of the investment supply and investment demand. The supply of investment resources is an attractive factor for both national and foreign investors in one or another branch of economy, determining the level of investment risks, on which depends the socio-political and economic security of investors. At the same time, the investment demand characterizes the investment intensity level, which reflects the growth rate of investment inflows into one or another branch of the country’s economy. An excess of the investment demand over investment supply in the country reflects the unfavourable investment climate of the country due to the lack of incentives for investment recipients to implement investment projects, and also unregulated interests between the subjects of investment process (state, potential investors, and recipients of investments). In Ukraine during the period from 2012 to 2016, the investment climate was unfavourable, as the ratio of the investment climate favourableness was significantly lower than the threshold. Practical implications. The calculation of the country’s investment climate favourableness is necessary to be made in order to reflect the effective use of indicators of economic and social development by the state. It is to say the efficient allocation and distribution of the gross domestic product, based on indicators of the amount of wages of hired workers and amount of net taxes on production and imports. According to the appropriate situation, the state should develop a budget plan for the next year with the benchmark for allocating budget expenditures in some sector and providing investment support. In Ukraine, the improvement of the investment climate requires the introduction of changes in tax legislation regarding the privileges for certain types of investors and innovation-active enterprises, and also provisions defining the transparency of the investment process. Value/originality. The ratio of the investment climate favourableness (RIC) should be at least 0.1, where RIC ≥ 0.1 means that the investment climate is favourable, RIC ≥ 0.1 – neutral, RIC ≤ 0.1 – unfavourable, considering that the threshold of the investment attractiveness level (LIA) is 10%, investment intensity level (LII) – 100%.


investment climate, investment process, investment attractiveness, investment intensity, tax burden, economic and social development.

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