FEATURES OF THE REGION'S INVESTMENT CLIMATE FORMATION AMID ECONOMIC INSTABILITY

  • A.V. Pereverzieva
  • А.О. Оsaul
Keywords: investment climate, region, soft factors, hard factors, institutional environment, investment attractiveness, investment policy, mechanism

Abstract

The article is devoted to the study of the peculiarities of the regional investment climate formation in the context of external challenges and higher economic instability. Based on the analysis, the factors shaping regional investment climate have been identified and grouped into two areas by the criterion of time invariance/ variability delimitation: the first group of factors requires a long period to implement changes (so called “hard” factors), the second group requires short period of time (“soft” factors). It has been proved that nowadays regional investment climate is largely determined by “soft” factors affecting investment institutional environment. The assessment of regional investment climate in Ukraine has allowed to group the regions according to the criterion of investment attractiveness, namely: leading regions (the highest level of investment attractiveness); “Catching up” regions (have lower level of general economic capacity compared to the leaders, but close to them); regions at an intermediate stage of development (have an intermediate level of investment risks); outsiders (low level of investment attractiveness and activity). The authors have singled out five groups of factors shaping the investment climate: the level of productive forces development and investment market position; political will of a government and the legal environment; financial and credit system position and activities of financial intermediaries; foreign investor status; population investment activity. Based on the factors analysis, four types of environment have been formed, which are in fact components of the investment climate: political and legal environment; socio-cultural environment; economic environment; institutional and infrastructural environment.

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Published
2021-08-12
How to Cite
Pereverzieva, A., & ОsaulА. (2021). FEATURES OF THE REGION’S INVESTMENT CLIMATE FORMATION AMID ECONOMIC INSTABILITY. Financial Strategies of Innovative Economic Development , (2 (50), 79-82. https://doi.org/10.26661/2414-0287-2021-2-50-15
Section
Theoretical and applied aspects of economic processes in Ukraine and in the worl