Institutional support for building the investment potential of united communities in rural areas

Abstract

The purpose of this article is to deepen the theoretical foundations and scientifcally substantiate approaches to the formation in the conditions of open economy of a perfect investment institutional environment of rural areas. The article has used systematic and evolutionary approaches requiring a hierarchy of essential understanding of a perfect institutional environment and provide a whole research with an identifcation of various characteristics, direct and feedback relationships and dependencies that arise in the implementation of rural investment policy in Ukraine. The essence of the study is to determine the impact of the level of institutional environment perfection of investment attractiveness of rural areas in Ukraine. The practical content has been determined by the fact that theoretical and methodological bases, conclusions, scientifc and practical recommendations form the scientifc basis for the development of a new and a whole concept of national investment policy development at the regional level in Ukraine, taking into account the integration and world economic globalization processes. It has been substantiated that the institutional component is an important component of investment attractiveness for rural areas except an economic one. Research has proved that the formation of a perfect investment institutional environment changes the basic principles of economic interactions, makes them equally attainable for all participants of investment projects, gives the opportunity to reconcile the interests of the entities of the formal and informal sectors and provide them with motivational incentives for innovation-oriented and environmentally responsible country. It has been concluded that the ability of a perfect institutional investment environment to direct an investment potential to the improving of well-being, innovations and investing in people requires the state to determine these tasks as critical of economic growth of rural areas in order to increase the inhabitants’ wealth. It has been substantiated than investment regional policy should be organically integrated in a new institutional environment with inclusive economic and political institutions and should be an accountable and transparent one in governance system. Key words: investments, institutes, institutional environment, region, investment resources, direct investments, entrepreneurship, investment policy.