|
| HOME PAGE | |
№ 2020/1
HARKAVENKO Valentyna Ivanivna1, YERSHOVA Galina Vitaliivna2
1Institute for Economics and Forecasting, NAS of Ukraine
2Institute for Economics and Forecasting, NAS of Ukraine
Impact of foreign capital on the economic development of Ukraine
| Economy and forecasting 2020; 1:43-56 | https://doi.org/10.15407/econforecast2020.01.043 |
ABSTRACT ▼
The article examines the impact of foreign capital on the economic processes that took place in Ukraine during 2000–2019 pp. Among foreign investors, Ukraine seeks to position itself as an investment hub, in which it is profitable to invest and develop business. In some places, the impression is that foreign investment is identified with a panacea that will enable Ukraine to reach the level of development of world leaders. At the same time, the study concluded that the efficiency and quality of FDI, portfolio investment and debt capital raises considerable doubts. For 2000 and 10 months of 2019, the total net inflow of direct, portfolio foreign investments and foreign loans to Ukraine amounted to $ 185.3 billion. USA. At the same time, such a large financial resource did not become a catalyst for structural changes in the economy and the development of high-tech production. Instead, the concentration of foreign capital in certain economic activities contributed to the consolidation of the raw material orientation of this country's economy and exacerbation of domestic economic problems against the backdrop of a large influx of speculative capital.
Much attention is paid to the geographical structure of foreign investments and debt capital, which testifies to the significant influence of offshore jurisdictions on the activities of domestic businesses and the formation of their behavior. Offshore capitalization is a defining feature of national business, which has become one of the main causes of the distortion of the model of Ukraine's economic development. The article focuses on the need to improve public policy on attracting foreign capital in Ukraine. In particular, it is proved that the lack of proper control over the concentration of foreign capital in certain sectors causes significant imbalances, which, under the influence of other factors, exacerbate the crisis. In view of this, it is advisable at the state level to analyze the "toxic impact" of foreign capital on structural changes in the economy and its impact on the economic security of Ukraine. The article was prepared in the framework of R&D on "Financial risks of doing business in Ukraine: non-financial corporations sector" state registration No 0118U006088.
Keywords:foreign capital, foreign direct investment, economic development, foreign loans, offshore capital
JEL: O190
| Article in English (pp. 43 - 56) | Download | Downloads :405 |
REFERENCES ▼
2. Svyetlov, B., Obushna, N. (2012). The mechanism of stimulation of foreign direct investment in the conditions of modernization of the Ukrainian economy. Aktualni problemy mizhnarodnykh vidnosyn – Topical problems of international relations, 105, part II, 122-128 [in Ukrainian].
3. Lutsenko, I.S. (2013). Tax incentives for attracting foreign direct investment in Ukraine. Investytsiyi: praktyka ta informatsiya – Investment: practice and experience, 18, 9- 13 [in Ukrainian].
4. Harkavenko, V.I. (2018). Monetary liberalization: expediency and timeliness. Naukovi pratsi NDFI – Scientific works of the Research Financial Institute, 2, 41-44 [in Ukrainian].
5. High-technology exports (% of manufactured exports). The World Bank. Retrieved from data.worldbank.org/indicator/TX.VAL.TECH.MF.ZS?end=2017&locations= UA-CN-US-OE&name_desc=true&start=1960&view=chart
6. Germany Breaks Korea's Six-Year Streak as Most Innovative Nation (2020, January 18). Bloomberg Innovation Index. Retrieved from www.bloomberg.com/ news/articles/2020-01-18/germany-breaks-korea-s-six-year-streak-as-most-innovativenation? utm_source=telegram&utm_medium=msg&utm_campaign=telegram
7. Resolution of the Board of the National Bank of Ukraine No. 319 of October 11, 2008 "On additional measures for the activity of banks". Retrieved from zakon.rada.gov.ua/laws/show/v0319500-08 [in Ukrainian].
8. Doing Business 2019. Training for Reform. International Bank for Reconstruction and Development. The World Bank. Retrieved from www.doingbusiness.org/ content/ dam/doingBusiness/media/Annual-Reports/English/DB2019-report_web-version.pdf
9. Sources of financing of innovative activity of industrial enterprises. State Statistics Service of Ukraine. Retrieved from www.ukrstat.gov.ua [in Ukrainian].
10. Kozak, Yu.H. Kozak, Yu.G. (2017). International Economy: in nutrition and in economy. Kyiv: Center for Educational Literature. Retrieved from westudents.com.ua/knigi/141-mjnarodna-ekonomka-kozak-yug.html [in Ukrainian].
11. Yershova, H.V. (2012). Ukraine's competitive position among CIS countries in attracting foreign direct investment. Ekon. prognozuvannâ – Economy and forecasting, 4, 102-109. Retrieved from www.irbis-nbuv.gov.ua/cgi-bin/irbis_nbuv/cgiirbis_64.exe? I21DBN=LINK&P21DBN=UJRN&Z21ID=&S21REF=10&S21CNR=20&S21STN=1&S2 1FMT=ASP_meta&C21COM=S&2_S21P03=FILA=&2_S21STR=econprog_2012_4_12 [in Ukrainian].
12. Exports-imports of goods by countries in 2016. State Statistics Service of Ukraine. Retrieved from www.ukrstat.gov.ua [in Ukrainian].
13. Virgin Islands Economy - Leading industries, GDP and wealth. Retrieved from www.orangesmile.com/destinations/virginislands-british/economics.htm [in Ukrainian].
14. GDP (current US$). All Countries and Economies. The Work Bank. Retrieved from data.worldbank.org/indicator/NY.GDP.MKTP.CD
15. Harkavenko, V.I., Shapoval, Yu.I. (2017). "Cleaning" the banking sector in Ukraine: the price for society and the state. Ukr. socìum – Ukrainian society, 1, 60. doi.org/10.15407/socium2017.01.108 [in Ukrainian].
16. Harkavenko, V. (2011). Foreign capital in the banking sector of Ukraine: lessons learned from the past, lessons for the future. Institute for economics and forecasting, NAS of Ukraine. Kyiv [in Ukrainian].
17. US tightens control over foreign investment. TSN. Retrieved from tsn.ua/groshi/ssha-posilyuyut-kontrol-za-inozemnimi-investitsiyami.html [in Ukrainian].
18. Kushch, O. (2020, January 20). We love foreigners. Why Ukraine went through its banking golden era under Kuchma. Retrieved from minprom.ua/news/223776.html [in Ukrainian].
19. Draft Law of Ukraine "On Assessing the Impact of Foreign Investment on National Security of Ukraine". Ministry of Economic Development, Trade and Agriculture of Ukraine. Retrieved from www.me.gov.ua/Documents/Detail?title=ProektuZakonuUkrainipro OtsinkuVplivuInozemnikhInvestitsiiNaNatsionalniInteresiTaBezpeku [in Ukrainian].
20. International collaboration to end tax avoidance. OECD/G20. Retrieved from www.oecd.org/tax/beps
21. Ukraine and the BEPS plan: why offshore is a thing of the past (2020, October 29). Ekonomichna pravda – Economic truth. Retrieved from www.epravda.com.ua/ projects/offshore/2019/10/29/652879 [in Ukrainian].
Events calendar
| M | T | W | T | F | S | S |
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| 8 | 9 | 10 | 11 | 12 | 13 | 14 |
| 15 | 16 | 17 | 18 | 19 | 20 | 21 |
| 22 | 23 | 24 | 25 | 26 | 27 | 28 |
| 29 | 30 | |||||
