Problems of attraction and use of international investments in Ukraine economy

The aim of the article. In modern conditions Ukraine, likewise to the majority of developing countries is not able to provide social and economic development by their own financial resources and needs foreign capital inflows. Respectively, the purpose of this article is to determine the main factors that affect the attraction of foreign direct investments and their effective use in the national economy and develop a model to assess their impact on the FDI volume.The results of the analysis. By empirically examining, having built a mathematical model in the form of linear regression, it was found a significant correlation between the net international investment position and internal and external factors of the national economy. Furthermore, internal factors play key role in the fluctuation of the FDI amount attracted to the Ukraine's economy in the studied period (2000-2014 years). This fact expands the range of instruments of state regulation and creation a competitive market environment for attracting foreign investments.To study the nature of internal and external factors impact, and, hence, to identify areas of state influence on attracting foreign investment, there were examined determinants of independent variables in the regression model. Taking into account the statistical data and experts opinions, we can surmise that the main restraining factor for FDI attraction is not the war in the East and social tension in the whole country, however economic factors: the lack of development of private property institution and stock market; washout of capital and profits from domestic companies in favor of the related foreign companies; high interest rates on loans, etc.All of this points to the fact that in the current circumstances first and foremost, it is advisable to strengthen protection of private property in Ukraine. According to the experience of leading countries, government should provide adequate compensation to foreign investors in case of nationalization of assets and continue to reform the government branches, especially the judiciary and law enforcement in terms of fighting corruption and power abusing. Secondly, in the area of fiscal management public administration should be focused on transparency and simplicity of the tax basis calculation, taking into consideration experience of countries with the most favorable in the world tax systems for doing business. Thirdly, it is necessary to develop national stock market in order to both: effectively reallocate national income among different sectors of the economy, and to attract additional financial resources from the world capital markets.Conclusions and directions of further researches. All in all, it is clear, that current economic situation in the country requires that the suggested measures are to be implemented systematically, comprehensively and as soon as possible, in order not to let business to adapt to new conditions and develop new schemes to come over the laws.