ATTRACTING FOREIGN INVESTMENT IN THE NATIONAL ECONOMY OF THE STATE

Abstract

Investments are considered as a factor of economic growth. An analysis of the benefits of attracting investment in the economy of Ukraine and the problems that arise in certain actions of investors. Foreign direct investment, which is an important source of private external financing for developing countries, is considered. Not only can foreign direct investment contribute to resource exploration and capital formation, but more importantly, it is also a means of transferring production technologies, skills, innovation and organizational and management practices between locations, as well as access to international network marketing. Investment incentives, investment incentives, post-investment services, facilities improvements and measures to reduce business costs are considered. Investment processes influenced by the following external and internal factors, such as significant public debt, increased prudence of banks in lending to real sectors of the economy, low real disposable incomes of most groups and significant indebtedness of enterprises are analyzed. Investment cooperation is certainly important for Ukraine, however, in order for the penetration of capital from a more developed country to a less economically developed country does not lead to serious threats, it is necessary to create a single state program. Foreign investment will not be able to solve all the problems, public policy towards investors must be selective, i.e. in some cases, foreign capital can be attracted on any terms, meaning an industrial object or market, and in other cases – only under certain conditions. Bearing in mind certain and most vital industries or regions. The theoretical and methodological basis of this study is the scientific works of domestic and foreign scientists in terms of investing foreign funds in the economy. The study used a set of general and special methods of cognition: content analysis, logical generalization, quantitative and qualitative comparison, scientific abstraction and systematization. The practical significance of the article is that the state investment policy is now aimed at providing investors with all the necessary conditions for work in the Ukrainian market, and therefore in the future we can count on a change in the situation in the Ukrainian economy.