Priority directions of Ukraine’s investment collaboration forming with the countries of the European Union

Economic Annals-ХХI: Volume 141, Issue 5-6, Pages: 21-24

Citation information:
Yakhno, T., & Makogin, Z. (2014). Priority directions of Ukraine’s investment collaboration forming with the countries of the European Union. Economic Annals-XXI, 5-6, 21-24. https://ea21journal.world/index.php/ea-v141-05/

Tetyana Yakhno
PhD (Economics),
Associate Professor,
Lviv Academy of Commerce
10 Tugan-Baranovsky Str., Lviv, 79005, Ukraine
yakhnot74@mail.ru

Zoryana Mакоgin
PhD (Economics),
Associate Professor,
Lviv Academy of Commerce
10 Tugan-Baranovsky Str., Lviv, 79005, Ukraine
z_makogin@mail.ru

Priority directions of Ukraine’s investment collaboration forming with the countries of the European Union

Abstract. Introduction. Foreign direct investment (FDI) is an integral part of an open and effective international economic system and a major catalyst to development. FDI can contribute to sustainable regional development, lead to technology transfers, promote deeper international trade integration and stimulate a more competitive business environment. That’s why investment cooperation with the European Union is a perspective direction for Ukraine’s future economic development. Purpose. The aim of the research is to study the trends in investment cooperation between Ukraine and the European Union, as well as areas of cooperation and the strengthening of foreign economic relations of Ukraine with the European Union. Result. Despite the large volume of foreign trade and investment cooperation between Ukraine and the countries of European Union, the potential of cooperation is used only partially. This situation is a result of the inefficient structure of export-import operations; significant proportion of illegal trade; lack of bank guarantees; instability of Ukrainian legislation and the lack of an enabling environment for investment and so on. According to the analysis, the main investors in Ukraine are Cyprus, Germany, The Netherlands, The UK, and Austria. FDI from Ukraine mainly are concentrated in Cyprus, it is connected with offshore zone, where operates low-tax jurisdiction specializing in providing corporate and commercial services. Conclusions. To increase trade and investment cooperation between Ukraine and the EU our government should: harmonized standardization system of Ukraine; increase the share of high-tech products in exports; to diversify export-import markets; to improve trade structure; introducing new forms of trade relations, including industrial cooperation, cooperation on a reimbursable basis and so on.

Keywords: International Cooperation; Investments; Financial Resources; Investment Potential; International Experience

JEL Classification: F21; F35

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Received 19.04.2014