PROBLEMS OF EVALUATION AND INVESTMENT ATTRACTIVENESS MANAGEMENT AT THE MACROECONOMIC LEVEL
Lyulyov O.V.
Sumy State University,
Sumy, Ukraine
Sumy, Ukraine
Moskalenko B.A.
Sumy State University,
Sumy, Ukraine
Sumy, Ukraine
Pages: 207-216
Original language: Ukrainian
DOI: 10.21272/1817-9215.2020.1-24
Summary:
Analysis of the dynamics of the movement and structure of investment resources allows us to determine how competitive a sector of the national economy is in attracting foreign investment and identify problems before they affect the related macroeconomic indicators. The article examines the factors influencing FDI inflows and their interaction with public authorities. Based on the data of the quality of political institutions (WGI), developed with the participation of representatives of the World Bank, a basis for assessing the investment attractiveness of Ukraine was formed. As part of a study of international experience in assessing investment attractiveness, the authors analyzed current approaches to assessing the impact of political institutions on the dynamics of FDI and concluded on the qualitative characteristics of political institutions. Due to the limited supply of quality investment resources, the study of the assessment of the investment potential of the national economy is an important aspect of the implementation of domestic socio-economic policy. The study of the dynamics of macroeconomic indicators of the economy of Ukraine allowed to form a set of indices that have a significant impact on decision-making by potential investors. The authors proposed an approach to determining investment attractiveness based on the analysis of the dynamics of quantitative indicators of the state of the economy and quality indicators of public administration. The proposed model allows to assess the impact of each of the factors on the dynamics of FDI, to identify problems that demotivate the inflow of investment resources and to develop recommendations for investment policy management at the state level. Analysis of the dynamics of the movement and structure of investment resources allows us to determine how competitive a sector of the national economy is in attracting foreign investment and identify problems before they affect the related macroeconomic indicators. The authors' approach to assessing investment attractiveness takes into account most of the main determinants of FDI. In the analysis of the literature, it was decided to take into account not only quantitative statistics, but also the results of a survey of experts, which should have avoided the bias associated with the problem of non-consideration of variables. Further development of improving the assessment of investment attractiveness of the country by updating the list of determining factors and indicators influencing the movement of FDI, and ranking of indicators of investment attractiveness using the methods of expert assessments.
Keywords:
investments, investment potential, foreign direct investments, worldwide governance indicators, assessment of investment attractiveness..
Reference:
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1. Fedonin, O.S., Rjepina I.M., Oleksjuk O.I. (2003). Potencial pidpryjemstva: formuvannja ta ocinka [Potential of an enterprise: formation and evaluation]: navch. posibnyk. K.: KNEU. P. 316 [in Ukrainian].
2. Vasyljjeva, T. A. (2009). Sub'jekty investycijnogho rynku: kharakterystyka, povnovazhennja, problemy funkcionuvannja [Subjects of investment market: characteristics, authorities, problems of functioning] / T. A. Vasyljjeva, S. V. Ljeonov , O. V. Makarjuk // Visnyk Sumsjkogho nacionaljnogho aghrarnogho universytetu serija Ekonomika ta menedzhment. – 2009. – Vypusk 5 (36). – S.3-9. [in Ukrainian].
3. Ljeonov S. V. (2009). Investycijnyj potencial bankivsjkoji systemy Ukrajiny [Investment potential of Ukrainian banking system]. Sumy: DVNZ "UABS NBU". [in Ukrainian].
4. Thompson A. & Strickland A. (1999). Strategic management – Concept and Cases 11th ed. McGraw-Hill Companies, 1088 p.
5. Hausmann, R. and Fernandez-Arias, E. (2000). Foreign Direct Investment: Good Cholesterol? Inter-American Development Bank. Research Department Working Paper, 417
6. Dunning, J. H. (2002). Dunning, J., “Determinants of foreign direct investment globalization induced changes and the roles of FDI policies,” Annual World Bank Conference on Development Economics, Europe 2002–2003: Toward Pro-Poor Policies-Aid, World Bank Publications.
7. Singh H. and K. W. Jun (1995).Some new evidence on determinants of foreign direct investment in developing countries. The World Bank. International economics department finance division.
8. Quazi, R. (2005). Economic Freedom and Foreign Direct Investment in East Asia. International Academy of Business and Public Administration Disciplines (IABPAD) meeting.
9. Daniele, V. and Marani, U. (2006). Do institutions Matter for FDI? A comparative Analysis of the MENA countries. MPRA Paper, No.2426.
10. Globerman, S., & Shapiro, D. (2003). Global foreign direct investment flows: the role of governance infrastructure. World Development, 30, 1899–1919.
11. Bellos, S., & Subasat, T. (2012). Corruption and foreign direct investment: a panel gravity model approach. Bulletin of Economic Research, 64, 565–574.
12. Kaufmann, D., Kraay, A., & Mastruzzi, M. (2010). The Worldwide governance indicators: Methodology and analytical issues. World Bank Policy Research Working Paper. No. 5430.
13. Makukh T.O. Investycijnyj potencial jak faktor pidvyshhennja efektyvnosti vykorystannja finansovykh resursiv / T.O. Makukh // Visnyk Nacionaljnogho universytetu vodnogho ghospodarstva ta pryrodokorystuvannja. Ser. Ekonomika: zb. nauk. pr. — 2008. — Vyp. 1 (41). — S. 175—186.
14. Pankov S.A. Analytycheskye podkhodы k ocenke ynvestycyonnoj pryvlekateljnosty predpryjatyja / S.A. Pankov // Visnyk Khmeljnycjkogho nacionaljnogho universytetu. — 2010. — # 2, T.3. — S. 65—68
15. Wren, C., & Jones, J. (2010). Assessing The Regional Impact Of Grants On FDI Location: Evidence From U.K. Regional Policy, 1985-2005. Journal of Regional Science, 51(3), 497–517
16. Bouchoucha, N., & Benammou, S. (2018). Does Institutional Quality Matter Foreign Direct Investment? Evidence from African Countries. Journal of the Knowledge Economy. doi:10.1007/s13132-018-0552-y
17. Bénassy-Quéré, A., Coupet, M., & Mayer, T. (2007). Institutional determinants of foreign direct investment. The World Economy, 30, 764–782.
18. WGI. The Worldwide Governance Indicators. World Bank [Electronic resource]. – 2018. – Retrieved from https://info.worldbank.org/governance/wgi.
19. World Bank (2018). World Development Indicators 2018. World Bank. Retrieved from https://data.worldbank.org/indicator.
20. Freedom House. Freedom in the World 2017 [Electronic resource]. – 2018а. – Retrieved from http://freedomhouse.org/report/freedom-world.