Opportunities and threats from china's foreign direct investment in the economy of Ukraine

Abstract

Introduction. Attracting investment is a necessary prerequisite for economic development. An investment is an asset or tangible asset that is acquired for the purpose of generating income or increasing value. In an economic sense, investment is the acquisition of goods that are not consumed today but used in the future to create wealth. In finance, an investment is a monetary asset acquired with the idea that it will make a profit in the future or later be sold at a higher price for profit. The purpose of the paper is to explore the opportunities and threats from China's foreign direct investment in Ukraine's economy. Results. The role of foreign investment in the country's economy is investigated. Analyzing the tendencies of attracting international investments, it was found that these are significant investments, which can significantly contribute to the development of the economy. It is proved that this is relevant for the countries that specialize in the production of raw materials and require financial resources to modernize production and attract innovative technologies. Opportunities and threats from foreign direct investment are considered on the example of Ukraine and China. Direct investments (equity) in the Ukrainian economy by regions are analyzed. The direct investments from the countries of the world in the economy of Ukraine in January-September 2019 are analyzed. It is substantiated that the level of investment attractiveness depends on the average level of tariff protection of the markets. Expected opportunities and threats from China's foreign direct investment in Ukraine's economy are highlighted. It is argued that a possible positive consequence of attracting investment from China could be an increase in industrial production and an increase in the number of agricultural processing enterprises. Conclusion. Analyzing China's investment policy, it should be noted that there is a small amount of investment in Ukraine. At the same time, there is considerable potential for its growth. In order to stimulate China's foreign direct investment in the Ukrainian economy, a transparent and objective system of protection of creditors' and property rights, an effective system of relations between creditors and local authorities is needed. An expected positive consequence of attracting investment from China could be an increase in industrial production and an increase in the number of agricultural processing enterprises.