Investment climate and methods of its evaluation

Abstract

Creating a favorable investment climate in Ukraine is one of the most important conditions for attracting investment. Investments play a central role in the country's economic development and determine the overall growth of its economy. The effectiveness of investment policy depends on the state of production, the level of technical equipment of enterprises, the possibility of structural adjustment of the economy, the solution of social and environmental problems. Investments are a powerful incentive to re-equip and modernize the technical base of the enterprise, increase the volume of production, improve product quality and increase the competitiveness of the company in the market, which leads to increased economic benefits. The aim – justify the priorities of Ukraine's investment policy regarding the enhancement of foreign investment and increase of its efficiency. It thus becomes clear that an effective investment policy cannot be without a stable development of the country's economy as a whole. We get a closed circle of interconnected processes: investments contribute to the country's economic development, and the country's stable economic development provides an inflow of investment resources. The fundamental role in breaking these interdependencies belongs to the state, which should create the prerequisites for intensifying the attraction of investments to the country for the rather unfavorable overall economic development of the country and assure investors the expediency and utility of investing. The most important tasks for improvement of the investment climate in Ukraine in the short-term perspective are the following: preparation of the necessary legal and organizational framework for increasing the capacity of the mechanisms for ensuring the investment climate; formation of the basis for maintaining and increasing the competitiveness of the domestic economy; creating conditions for the interest of national investors to invest and use profits domestically without exporting them abroad.