Investments are the main engine for the development of the economy of any state. Their increase is influenced by the formation of an optimal climate for investors in the country. Often attention is paid to the actual volumes of incoming investments, for example, in the balancing electricity market in Ukraine. Also, important proper efficiency in the use of money. To create the most attractive conditions for investing in the economy, it is necessary to correctly build state policy. It should provide for the formation of organizational, legal, investment conditions for attracting funds from external and internal investors.
A huge number of works are devoted to the study of issues of investment attractiveness of the country. But this problem requires constant revision. It is necessary to take into account the dynamics of change, factors of external and internal nature that affect it:
The successful development of any state is impossible when its regions do not develop, economic instability is noticed, inflationary expectations and an unstable exchange rate of the national currency are growing, and there is no stable medium and small business. Comprehensively resolve these issues by attracting investments in the development of industry only the government can.
The investment climate is a system of qualitative and quantitative indicators that fully characterize the social, political, and economic development of the country. The investment climate is most often considered in the context of investment attractiveness (IA). It is a key parameter of the investment climate in the state.
Investment attractiveness is a combination of factors that hinder or facilitate the process of internal and external investment in the economy of the region, the state as a whole. Issues related to investment attractiveness are considered at the level of the country as a whole or a group of states (EU, Southeast Asia).
Investors, before deciding to invest in industry or the agricultural sector, additionally analyze the following characteristics: the
Less often, research is carried out at the regional level. A regional individual entrepreneur has a tangible impact on the formation of investment returns, the emergence of investment risks (venture investments), and other issues.
According to the definition adopted by the OECD, direct investment is considered as international investment in cases where a resident, who acts as a direct investor, invests in a recipient (a specific enterprise located in another country).
The IFI uses a slightly different formulation: «long-term investment by non-residents in the economy of the state».
In some years, there has been an increase in direct investment with partial recessions. All recessions were caused by internal political and economic crises in the country, except for 2009 (world crisis).
Unfortunately, it is not possible to identify a clear upward or downward trend in volumes.
It should be noted that investments in the economy of our state in the XXI century significantly exceed the investments of Ukraine in the economy of third countries. Analyzing investments in Ukraine by country, we can see that Cyprus occupies a leading position.
It is necessary to assess the IA of the state not only by internal indicators but also in comparison with other states. This makes it possible to more accurately determine the bottlenecks of the domestic investment market.
From the global rankings, it can be seen that Ukraine has improved its performance on several criteria:
There is a slight decrease in some items.
Even though for a significant number of positions included in the world rankings, there is a positive trend (for example, investments in solar energy in Ukraine), the state’s IA has slightly decreased (to the level of 2016).
This was influenced by a decrease in the investment attractiveness index (IAI):
This value assesses the attitude of business to the investment climate prevailing in the state:
The fall of the IAI was caused (according to the OECD) by the following factors:
The following are noted as positive changes in the formation of the business climate in Ukraine:
IA of our country over the past ten years has improved in terms of investments in alternative energy, but only slightly. Breakthrough changes were not achieved.
In the context of the country’s course towards European integration, restructuring of the state’s economy, taking into account the standards of a united Europe, developed corruption, growing inflation, economic and political instability, and other unfavorable factors, Ukraine needs effective and rapid reforms. Increasing IA should become one of the priority areas.
The government perfectly understands the tasks facing the state and makes every effort to stimulate internal and external investments in the economy, including the green energy sector of Ukraine.
For your investments in the Ukrainian economy to be maximally protected, to ensure guaranteed profit and timely return on investment, you need to have a reliable and trusted partner, registered and working on the country’s market for a long time, that may become Avenston Group, founded in 2007. We started working on the development of elements for the manufacture of solar modules. Now the company has made significant progress in this direction. Our employees specialize in large investments in promising developments in solar energy, other areas of renewable energy sources, and the introduction of the latest renewable energy technologies.
The company is developing its activities in other areas. Independent structural divisions have been created, specializing in:
Our group of companies represents a technical and financial advisory center with a consistently positive business reputation. We are ready to provide potential partners and customers, private and institutional investors with optimal, comprehensively balanced recommendations, support on any issues related to financing and attracting external sources to projects. In each specific case, an optimal business model is built, which ensures the accumulation of forces and funds to obtain the best result.
We are ready to undertake turnkey management of any projects in the field of RES implementation. Each project is worked out individually. Cooperation with us allows investors to receive maximum dividends from timely and correctly invested funds. Despite everything, the international community evaluates our country as a platform with the necessary investment attractiveness and ample opportunities to increase it.