Ph.D. S.O.Gerashchenko, Ph.D. T.M.
Cherkavskaya
National Mining University,
Ukraine
Investment
climate in the economy of Ukraine.
The investment climate is a set of economic, political, legal and social
factors that determine the level of risk for foreign investment and the
possibility of their effective use in the country or separate territory.
Generally, the investment climate is determined by a large set of factors which
are difficult to analyzed. We will analyze the basic components of the
investment climate in this research work: investment potential and investment
risks for the Ukrainian economy. We will try to give recommendations on
improving the investment attractiveness of Ukraine based on advantages and
disadvantages of the component of the investment climate.
But despite a certain investment potential serious threat to investment
attractiveness of
The position of
Table 1.
The place of Ukraine in global ratings for the period
2010-2016.
Indicators |
Years |
Devia-tions 2016/2015 |
||||||
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
||
Global Competitiveness Index (GCI) |
89 (ç 143) |
82 (ç 144) |
73 (ç 144) |
84 (ç 148) |
76 (ç 144) |
79 (ç 140) |
85 (ç 138) |
↓ 6 |
The Doing Business |
147 (ç 183) |
149 (ç 178) |
152 (ç 183) |
137 (ç 184) |
112 (ç 189) |
96 (ç 185) |
83 (ç 190) |
↑ 16 |
The corruption perception index
(Transparency International) |
134 (ç 178) |
152 (ç 182) |
144 (ç 174) |
144 (ç 177) |
142 (ç 175) |
130 (ç 167) |
131 (ç 176) |
↓ 1 |
The index of economic
freedom (Heritage Foundation) |
162 (ç 179) |
163 (ç 179) |
161 (ç 179) |
163 (ç 179) |
155 (ç 179) |
162 (ç 178) |
162 (ç 178) |
0 |
The index of invest-ment attractiveness (BDO International Business Compass) |
- |
- |
115 (ç 174) |
99 (ç 174) |
109 (ç 174) |
89 (ç 174) |
130 (ç 174) |
↓ 41 |
Source: developed
on the basis of [3-7].
The data presented in table 1 indicates that the country has not been
significant progress in improving the investment climate. Only according to
Doing business index,
Overall, Doing Business is intended to exclusively assess the quality of
regulations of business activities in the country and absolutely nothing to do
with macroeconomic indicators, in particular such as the stability of the
financial system, quality of fiscal management, skill level of the workforce
and other aspects of macroeconomic stability.
According to the global competitiveness index between 2010 and 2016,
Ukraine's position in the ranking has not changed significantly: in seven
years, Ukraine has risen just by 4 positions, in addition for 2016 compared to
2015 fell by 6 positions.
Ukraine tops the list from the end for some items, in
particular, on the strength of us banks for the second year in a row rated
among the evaluated countries, among 138 countries for regulation of securities
exchanges, we got the last place for inflation – 136, road – 134. We are
lagging behind with the development of infrastructure and other components of
global competitiveness Index.
The level of perception corruption index in Ukraine is
on the 131th place out of 176 places in the ranking of international
non-governmental organization Transparency International. And this figure
practically did not change today since 2010. (in 2010 - 134 place out of 178
countries).
The index of economic freedom is calculated on the
basis of 10 quantitative and qualitative factors, grouped into four broad
categories or pillars of economic freedom: rule of law (property rights,
freedom from corruption),limitation of government (fiscal freedom, government
spending, regulatory efficiency (business freedom, freedom of the labor market,
monetary freedom), open markets (trade freedom, investment freedom, financial
freedom). Ukraine in
Ukraine has become a country in which took place the biggest in the
world (among 174 countries surveyed) the fall of the investment attractiveness
index by 41 points (from 89 locations in 2015 to 130 seats in 2016) according
to the rating of investment attractiveness of countries in 2016. Since the
index consists of economic, legally-political and socio-cultural conditions in
the country, respectively, there was a significant deterioration in all the
above conditions. Specified rating is very negative for the investment
attractiveness of
Thus, the investment climate in Ukraine is not attractive from the point
of view of most international rankings. We are talking mainly about economic
instability in the country (macroeconomic situation), the legal gaps in
legislation, high level corruption, weak judicial system and financial support received
the oligarchs which close connections with leading politicians, corruption,
political instability, inflation, inefficient government bureaucracy,
inadequate access to Finance, frequent changes of government, high tax rates,
complexity of tax legislation, the foreign exchange market regulation,
inappropriate quality of infrastructure, restrictive labor market regulation,
poor quality of health care. We can add Russian aggression and the anti-terrorist
operation in the East of Ukraine for all political, legal and economic
troubles. As a result of all this
problems the situation with the investment climate looks even more alarming.
Literature
1. The site of the
State Statistics Service of Ukraine // http://www.ukrstat.gov.ua/operativ2016/gdn/reg_zp_m/reg_zpm16_u.htm
2. Ranking countries by level of education // http://www.gtmarket.ru /ratings/ education-index.
3. The Doing Business // http://www.doingbusiness.org.
6. The Heritage Foundation The index of
economic freedom // http://www.heritage.org/index/ - Index of Economic Freedom 2016).
7. The index of investment
attractiveness// https://www.bdo-ibc.com/fileadmin/dokumente/BDO-IBC-Summary-2016_ENG.pdf-