Economics and management of national economy

Features of investment between Ukraine and Cyprus

Economic Annals-XXI

Economic Annals-ХХI: Volume 140, Issue 3-4(2), Pages: 16-18

Citation information:
Makariuk, O., & Moskalenko, B. (2014). Features of investment between Ukraine and Cyprus. Economic Annals-XXI, 3-4(2), 16-18. https://ea21journal.world/index.php/ea-v140-04/

View Full TextDownload PDF

Oleksii Makariuk
PhD (Economics),
Associate Professor,
Sumy State University
2 Rimsky-Korsakov Str., Sumy, 40007, Ukraine
makaryuk@gmail.com

Bogdan Moskalenko
PhD Student,
Sumy State University
2 Rimsky-Korsakov Str., Sumy, 40007, Ukraine
b_mos@mail.ru

Features of investment between Ukraine and Cyprus

Abstract. Introduction. Current state of the investment market in Ukraine is characterized by the nature of the crisis. Residents of Cyprus are the biggest foreign investors in the Ukrainian economy in recent years. The basis for the development of the investment potential of Ukrainian enterprises is high-quality foreign investment. Purpose. Thus, the actual problem is the research of the investment process between Ukraine and Cyprus to develop recommendations on optimization its management. Results. During the study period, the volume of investments from residents of the Republic of Cyprus in the Ukrainian economy grew steadily. With this also proportionally grew investment by residents of Ukraine to the economy of Cyprus. Based at the analysis results, the authors concluded that much of the foreign direct investments by residents of Cyprus are of Ukrainian origin. Poor tax law allows investors to Ukraine from around the world via intermediaries of the Republic of Cyprus to avoid a large part of the tax burden while investing in businesses in Ukraine. Conclusion. Foreign direct investment by residents of the Republic of Cyprus is not a quality with little impact on improving the investment potential of Ukrainian enterprises. The low tax rates attract capital to Cyprus from all over the world. Therefore, the actual residency of the large part of foreign direct investment by the law of the Republic of Cyprus in Ukraine’s economy is almost impossible to establish.

Keywords: Foreign Direct Investment; the Investment Potential of Enterprises; Investment Market; Investment; Republic of Cyprus; Ukraine’s Economy

JEL Classification: E22; E29; E44; E60; F21

References

  1. Arefiev, M. (2001). Concept formation sources of financing investment in the economy. Finansy i kredit (Finance and Credit), 11, 23-34 (in Russ.).
  2. Vasylieva, T., Lieonov, S., & Makariuk, O. (2009). Investment Market of Ukraine: problems and prospects. Ekonomichnyi prostir (Economic Space), 28/1, 77-85 (in Ukr.).
  3. Lieonov, S., Vasylieva, T., & Makariuk, O. (2009). Analysis of the merits of the investment market and its role in the economic system functioning. Visnyk Kharkivskoho natsionalnoho tekhnichnoho universytetu silskoho hospodarstva (Herald of Kharkiv National Technical University of Agriculture), 85, 16-22 (in Ukr.).
  4. Amram, M., & Kulatilaka, N. (1999). Real options: Managing strategic investments in an uncertain world. Harvard Business School Press, 145-163 (in Eng.).
  5. Fabozzi, F. (2010). Financial instruments (E. Vostrikov, J. Kowalewski, M. Orlov, Trans.). Moscow: Eksmo (in Russ.).
  6. McDonald, R., & Siegel, D. (1985). Investment and the Valuation of Firms When There Is an Option to Shut Down. International Economic Review, 26 (2), 331-349.
  7. Majda, S., & Pindyck, R. (1987). Time to Build, Option Value and Investment Decisions. Journal of Financial Economics, 18(1), 7-27.
  8. The State Statistics Service of Ukraine (Official website).
    Retrieved from http://ukrstat.gov.ua (in Ukr.)
  9. The Cabinet of Ministers of Ukraine (2011). On the list of offshore zones (The Resolution).
    Retrieved from http://zakon4.rada.gov.ua/laws/show/143-2011-%D1%80 (in Ukr.)
  10. The Government of Ukraine (2013). On ratification of the Convention between the Government of Ukraine and the Government of the Republic of Cyprus for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income and the Protocol thereto (Law of Ukraine).
    Retrieved from http://zakon4.rada.gov.ua/laws/show/412-18/paran2#n2 (in Ukr.)
  11. The Cabinet of Ministers of Ukraine (2012). The avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income (The Convention).
    Retrieved from http://zakon2.rada.gov.ua/laws/show/196_016 (in Ukr.)

Received 28.02.2014

View Full TextDownload PDF
In, , , , , , ,

More Papers