Direct Foreign Investments in the Ukrainian Economy: State and Problems of Attracting

Investment is one of the main sources of sustainable economic growth of any country. A special need for investment, including foreign ones, is experienced by countries with economies in transition, to which Ukraine belongs. This article aims to analyze the state and dynamics of foreign direct investment and determine the sectoral structure of foreign direct investment in the national economy in the sectoral dimension to identify the problems and opportunities for investment development of Ukraine. According to the results of the analysis, it was found that the volume of foreign direct investment in Ukraine remains at a low level, and cannot affect the solution of problems related to the raw materials orientation and sectoral inefficiency of the national economy. Trends in attracting foreign direct investment to Ukraine are analyzed and the main factors slowing down this process are identified. These factors include the ongoing military conflict in the East of Ukraine, macroeconomic problems, political instability and low quality of institutions. It was found that, starting in 2018, there has been a gradual renewal of the interest of foreign investors in Ukraine. At the same time, it was found that foreign investments are directed mainly to less technologically and science-intensive industries and sectors of the economy. They account for about 60% of the total volume of foreign direct investment in the Ukrainian economy. It was emphasized that the priorities for national and foreign investment in Ukraine should be medium- and high-tech industries, which currently account for only a few percent in the total structure of foreign direct investment. To remedy the current situation, it is proposed to introduce tax and non-tax methods of investment incentives, among which industrial parks should take a special place as one of the most effective tools for attracting foreign investment in world practice. They contribute not only to the inflow of foreign investment, but provide many other advantages to countries and regions, including: the creation of new jobs, an increase in industrial production, the growth and diversification of exports, the attraction of foreign technologies and management practices, the development of high-tech industries. All these advantages and benefits from the creation of industrial parks are in need of Ukraine.