Economical Faculty
Speciality: Economy of enterprise
Investment activity is an important determinant of economic growth, which plays an important role in the economy. Quality of life and other important characteristics of the development of modern societies depend on the rate of economic growth, in conclusion of attracting investment. The management of investment processes in enterprises, ensuring their full potential is one of the priorities of both central and regional authorities.
The relevance of work's topic is based on fact that development of market relations in Ukraine, acquires special significance study of investment attractiveness, the transition to higher quality, investment and innovation type of growth based on substantial investments. In the short term, the role of investment will dramatically increase, because they are the basis for stable and sustainable economic development, which would reduce the gap in key macroeconomic indicators between Ukraine and the developed countries, will create preconditions for a dignified entry into the European Union. Quality of life and other important characteristics of the development of modern societies depend on the rate of economic growth, ie of attracting investment. Hence, the investment management process, ensuring their full potential is one of the priorities of both central and regional authorities.
The goal of this research is to substantiate the theoretical bases and provisions relating to investment process, characteristic of investment processes in Ukraine and develop recommendations for their enhancement.
The object of this work is level of investment processes in Ukraine.
Investment process - a process of acculturation to the investor of an investment carried out in order to obtain a controlled investment income by investing [7, c.128].
The investment process is a cumulative investment of different forms and levels. Implementation of the investment process in the economy of any type requires a number of conditions, principal among which are: sufficient for the functioning of the investment scope of resource potential, of economic actors to ensure the investment process to the extent necessary, the mechanism of transformation of investment resources into objects of investment activity.
The investment process has all the features of the system: it is always a subject of (investor), object (investment), the relationship between them (the investment in order to obtain investment income) and the environment in which they exist (investment climate). In this connection, he system-factor, because all the other elements are united into one whole.
System approach allows you to fully analyze the level of investment by means of two characteristics: the dynamics of investment and investment climate, which in turn include a number of more detailed indicators: the dynamics of foreign direct investment in Ukraine, the dynamics of foreign direct investment in Ukraine from EU countries, the dynamics of capital investment, the dynamics of Investment in fixed assets by economic activities, evaluation of business environment in Ukraine by the criterion of the protection of investors, the level of taxation of profits of enterprises, security classification of property rights in Ukraine, etc.
High economic growth rates recorded on the basis of 2007 - the first half of 2008, accompanied by the strong dynamics of investment processes. According to Goskomstat, fixed investment increased in 2007 compared with the previous year by 29.8%. Therefore, domestic investment demand should be considered a significant factor in economic growth in 2007, According to approximate estimates, the growth of investment has more than 35% of the total GDP growth last year. With the steady pace of investment trends, which are stored in Ukraine since 1998, the economy is gradually emerging from a deep investment crisis. At the end of 2007, investment in fixed Captan has reached 88% in 1990. A positive trend was observed even during the first half of 2008, but the second half of the year was characterized by declining investment momentum in almost all sectors of the economy.
During 2004-2008 in Ukraine everybode could see work against the backdrop of relatively robust growth of investment (except for 2005) there was steady decline in the share of total investment in industry and transport and communications. But the steadily increasing proportion of investments in real estate and trade. At the end of 2007, the share of investment in trade, finance and real estate has reached 32.5% against 23.4% in 2004, while the industry - declined from 37.2% to 34.1%. Total for the 2005-2008 biennium. Investment in industry has increased in 1,5 times, while in real estate - in 1,9 times, financial activities - 2.4 times, retail trade - tripled. Similar trends were present and 2007. At the end of 2008, investment in industry increased by 27%, while retail sales - declined by 8%, financial activities - have fallen by 16%.
In 2007 it was recorded some improvement in the structure of foreign investment in Ukraine in favor of the real sectors of economy. For example, if the share of foreign direct investment in 2006, the industry accounted for 20.9%, in 2007 it reached 29,4%. Share intermediary sectors (trade, financial services and real estate operations - declined during this period from 64.3% to 50.5%. Meanwhile, the impact of foreign direct investment to improve the technological structure has remained relatively low: the share of investment in engineering declined from 3 , 7% in 2006 to 1,2% in 2007 The increase in the proportion of industry in foreign direct investment in 2007 was primarily due to the influx of foreign investors in the mining industry - its share rose from 8.6% to 31.0% of all industrial foreign direct investment. Thus, it should be noted the strengthening of the role of foreign direct investment in 2007 to strengthen the raw materials, low-technically oriented economy. This, in turn, reflects the unpleasantness of investment environment for investment in the establishment of industries in high technology industries.
Investment climate in the general sense is called the situation in the country, in terms of domestic and foreign investors who invest their capital in the economy [6, c.187].
This figure includes a significant number of risk factors that comprise the influence of external and internal conditions, situations and development prospects.
Providing a favorable investment climate in Ukraine remains a matter of strategic importance, which depends on the realization of socio-economic dynamics, the effectiveness of involvement in the international division of labor, the possibility of upgrading to this basis, the national economy.
Today, Ukraine has established a legal framework for the implementation of investment activities. In particular, this sphere of activity is regulated by a number of Laws of Ukraine ( "On investment activity", "On the mode of foreign investment," "On Protection of Foreign Investments in Ukraine", etc.), more than 10 decrees of the President, as well as decisions and orders CMU [17 , c. 18-19]. According to these laws and regulations in Ukraine provides for equal rights and protection of investment for all the subjects of investment activity. At the same time to protect foreign investments and creating the framework conditions for international investment is directed to further ratification of the Washington Convention on the Settlement of Investment Disputes between States and foreign persons and the agreement on promotion and reciprocal protection of investments, which are signed with more than 70 countries around the world.
However, despite considerable efforts in creating the appropriate institutional, economic and legal framework to strengthen the investment climate, international experts, a decline of investment attractiveness of Ukraine. Thus, to assess the Economist Intelligence Unit (EIU), Ukraine on indicators of quality of business environment, took 75 place among 82 countries. At the same time among the 16 CEE and CIS countries included in the rating, Ukraine has the worst rate. Despite the predictions of the organization on a specific growth rate during the 2008-2012 biennium (5 positions), Ukraine and in the future will significantly lag behind key competitors for foreign investment in the global market.
The course of modern political processes and lack of practical implementation of the objectives and priorities for improving the investment climate in Ukraine, mainly affecting the investment climate and, in particular, an international investment attractiveness of Ukraine, raise the risks for investors, producing thereby the loss in the competition for global investment funds. The growth of foreign direct investment (FDI) in Ukraine in 2008 (excluding undistributed by economic activities and income from privatization), according to preliminary Goskomstat data, amounted to 7.8821 billion dollars, that in 1,7 times more than the final 2007 city, and the slight increase in 2006 This significant share of investment provided over the past three years, sales to non-residents of one or two operating companies (in particular, "Krivorozhstal", "Aval", "Ukrsotsbank", etc.), the decision to purchase determeniruet which is not the quality of the investment climate in Ukraine, but rather the need to increase geokonkurentnyh the benefits and necessity of the expansion of parent companies to the markets of developing countries.
In recent years, Ukraine has attracted foreign direct investment is several times less than other countries in Central and Eastern Europe, and the proportion of countries in world FDI flows remain extremely low: in 2005 - 0.8% and about 0.4% - in 2006 In 2005, the countries of Central and Eastern Europe and CIS countries was 77.3 billion U.S. $ FDI in 2006 - 104.9 billion dollars, representing about 8% of world total FDI, of which 63% , or 66.1 billion dollars (in 2006) attracted the 5 countries (Czech Republic, Hungary, Poland, Romania and Russia). The share of Ukraine in the FDI received by the countries of Central and Eastern Europe and the CIS in 2005 was about 10.1%, and in 2006 dropped by half - up to 5% [18, c.65-67].
In 2007 it was recorded some improvement in the structure of foreign investment in Ukraine in favor of the real sectors of economy. For example, if the share of FDI received in 2006 the industry accounted for 20.9%, in 2007 it reached 29,4%. Share intermediary sectors (trade, financial services and real estate operations - declined during this period from 64.3% to 50.5%. However, a significant breakthrough in improving the competitiveness of the national economy is the flow of FDI can not be named because the impact of FDI to improve technological structure has remained relatively low: the share of investment in engineering declined from 3.7% in 2006 to 1,2% in 2007 The increase in the proportion of manufacturing in FDI in 2007 was primarily due to the influx of foreign investors in the mining industry - its share rose from 8.6% to 31.0% of all industrial FDI. So, it should be noted the strengthening of the role of FDI in 2007 to strengthen the raw materials, low-orientation of the economy of Ukraine. This, in turn, displays the unpleasantness of investment environment for investment in the establishment of industries in high-technology industries [18, c.52-53].
Thus, Ukraine needs new mechanisms for attracting FDI and significantly improve the investment climate. But in Ukraine is increasingly being felt ambiguity of the investment strategy, and the opacity of the process of discussion and formation of investment and innovation priorities for the development of national economy hinders the formulation of objective goals and directions of this policy, weakening the social legitimacy of government policy in this area. In society, as well as among the economic elite, already overdue realization that without a fundamental change of the introduction and implementation mechanisms, declared in the national legislation of norms for the investment climate in Ukraine will be deprived of decent prospects in the international division of labor.
A good criterion for the quality of the investment climate in Ukraine was a significant outflow of capital from the country in 2008 in the form of foreign direct investment of $ 6.0 billion, of which nearly 89% of direct investments made by enterprises which are registered on the type of economic activity "operation Real estate, leasing, engineering and services businesses. Therefore, the net increase in investment assets as a result of the international «sharing» investment was only U.S. $ 1875.5 million, as foreign direct investment in Ukraine amounted to 76.2% growth in FDI in 2007
Attracting investment has been and remains a key development issue for both national and regional economy. It is therefore necessary to be the establishment of an effective investment policy, which will lead to increased investment at all levels of management.
Specification of investment focus for regional development should be based primarily on the development of concepts and programs to attract investment to the region's economy with a clear definition of short-and long-term goals of the implementation of the basic investment program, the characteristics of predictive directions and volumes of investment, as well as the definition of development of investment income.
In the context of increased autonomy of the regions of great importance is the identification of regional needs for investment in the productive development of the subjects of management and the capacity of these entities to absorb the expected investment. In fact, the question is about the ability of regional infrastructure to attract and efficiently use borrowed funds to cover the needs of the regions. In the context of increased autonomy of the regions of great importance is the identification of regional needs for investment in the productive development of the sub? Management and the capacity of these actors? Conservar expected to absorb investments. In fact, the question is about the ability of regional infrastructure to attract and efficiently use borrowed funds to cover the needs of the regions.
The documentary form of a preliminary assessment of the potential can be described, for example, the "Investment passport of the region". Assessing investment potential may be, of course, sin quantitative exaggeration, but in any case is necessary. The gap between the desirable and feasible to fill the volume of development of investment intermediaries in the investment market (banks, investment funds and companies, trusts, who are working towards saturation regional investment proposals for potential investors.
As world experience shows, the majority of investment portfolio, rather than explicitly. In this aspect, the problem is that the restructuring of enterprises that were privatized, begins and ends at the first stage of the redistribution of property to its state of equity and paper, when equity capital is formed in a single original first issue of shares without any further movement. Ie are actually only changing the legal status of the company: it was public, it was open (or rather, it is open) joint-stock company.
Indeed the investment phase of the privatization of the company begins only with the second and subsequent issue of shares when the shares go to the secondary capital market, and in fact only there being a market valuation of their investment attractiveness. It should also be borne in mind that investment does not contribute to the excessive dispersion of ownership of the company promotional among many owners of small blocks of shares. Competitive businesses to attract the necessary funds can emit not only shares, but bonds and other debt obligations, because the increase in shareholders' equity includes the threat of the appearance of a lack of controllability. Can local authorities in conjunction with regional offices MFI, State Commission on Securities and Stock Market to assess the condition and attempt to exit the region to the secondary capital market.
Development and implement an investment strategy and tactics must be based on a comprehensive waste of economic and mathematical models and scenarios, which are important at both the national and regional levels. Of course, the effectiveness of regional investment policy is largely dependent on improving the investment climate in the country as a whole. Concerning the approximation of the state and regions, it is important to balance the calculations modeling resource for regional development, especially at the level of interregional relations. This will help improve the integration of Ukraine's regions. Therefore, the problem of conversion, diversification of production, cooperation at the regional level should be the subject of our study of economic science.