DOI: https://doi.org/10.18371/fcaptp.v1i32.200584

CURRENT CREDITING INSTRUMENTS INFLUENCING INVESTMENT CLIMATE IN UKRAINE

M. L. Shvayko, N. O. Grebeniuk

Abstract


The article investigates modern approaches to define the concept of investment climate. The latter is considered to remain unfavorable in Ukraine, although there are some positive changes in this direction. The factors which determine the state of investment climate are identified and structured in this paper. They include social, institutional, economic, integration and man-made ones. The key instruments which might influence the investment climate of Ukraine are determined. It is underlined that their effective use will improve the state of investment climate in the country nowadays.

The change of investment position of Ukraine in the world’s top rankings is underlined. According to the most authoritative Ease of Doing Business ranking, the rate of Ukraine is 71st at the beginning of 2019. Ukraine has considerably improved its rate recently. The most significant changes have been observed in the field of customs policy whereas the most problematic one is the bankruptcy procedures.

The research of the current state of investment activity in Ukraine has revealed an increase in the inflow of foreign direct investments, although their size compared to the needs of the real sector of the economy is still insignificant. The factors constraining the investment activity in Ukraine are formulated.

The usage of the relevant crediting instruments influencing the investment climate of Ukraine in order to improve it and to increase the activity of domestic and foreign investors is suggested. It is proved that tax, budgetary and crediting instruments of currency regulation are currently the most essential. Positive influence of currency liberalization on the investment climate of Ukraine is revealed. The legalization of crypto currency operations is recommended. It is also necessary to implement modern electronic accounting methods (blockchain technology) into financial practice and accelerate the implementation of Basel III international standards.

In Ukraine the legalization of cryptocurrencies will lead to a GDP growth, development of the new ways of running banking business and investment activity encouragement.

Keywords


investment climate; investment ratings; crediting instruments; banking system; monetary policy

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Copyright (c) 2020 M. L. Shvayko, N. O. Grebeniuk

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ISSN (print) 2306-4994, ISSN (on-line) 2310-8770