| Peer-Reviewed

Investment Determinants Modeling for Territorial Development of Southern Ukraine: Institutional Quality and Economic Growth

Received: 20 June 2022    Accepted: 1 September 2022    Published: 10 November 2022
Views:       Downloads:
Abstract

Foreign direct investment plays an important role in the global economy. There is a huge competition among countries for their attraction, since they have a positive impact on the economy of the country that receives the investment. In addition to direct effects - an increase in GDP, budget revenues, and the decrease in unemployment - foreign direct investment also indirectly has a positive impact on the host country in the form of new knowledge, transfer of experience, dissemination of technology. This study is aimed at identifying and assessing the factors (determinants) that affect the inflow of foreign direct investment into the regions of Ukraine. The paper proposes the use of modern tools for monitoring macroeconomic indicators and the study of their non-stationary dynamics in the context of the implementation of investment policy based on the tools of phase and co integration analysis, which makes it possible to obtain a comprehensive assessment and analyze the stability of the macroeconomic dynamics of Ukraine in the context of increasing globalization transformations in the dynamics of territorial development, ongoing in the conditions of global crisis processes. The paper examined the factors that have a significant impact on the volume of foreign direct investment. To verify the hypotheses, an economic-mathematical model with fixed effects is proposed. In this paper, the author proposes an analysis of models of interaction between macroeconomic indicators. The phase trajectories of modeling allow us to conclude that at this stage of the development of the Ukrainian economy, there is a non-stationary and unstable dynamics, the trajectories are oscillatory-periodic or periodic, therefore, insufficient stability of the system can lead to catastrophic consequences. The results which are obtained in the course of econometric modeling will be useful for representatives of public authorities, as they can be used to develop strategies aimed at attracting foreign direct investment in the regional economy.

Published in Journal of Political Science and International Relations (Volume 5, Issue 4)
DOI 10.11648/j.jpsir.20220504.14
Page(s) 117-126
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Direct Investment, Investment Activity, Investment Project, Investment Strategy, Determinants, Territorial Development, Non-Stationary Economy

References
[1] UNCTAD. Trade and Development Report (2016): URL: http://unctad.org/en/PublicationsLibrary/tdr2016_en.pdf
[2] PEARCE, J. A. (2013): Strategic management: formulation, implementation and control. 8th ed. Publications Office of the McGraw-Hill Companies. ISBN 0-07-248846-8.
[3] DROBYAZKO, S. (2020): Resource supporting of business economic security at the micro and macro levels. Journal of Security and Sustainability Issues, 2020, 10 (1), P. 307-320. ISSN 2029-7017 (print). ISSN 2029-7025 (online).
[4] KARPENKO, L. (2017): The system of analytical tools of integrated managerial analysis for the activation strategy of the enterprise innovative investment development the system. In International Conference on Current issues of world economy and politics: International Relations 2017. Bratislava, University of Economics in Bratislava, pр. 499-510. ISBN 978-80-225-4488-7.
[5] CASIDY, R. (2014): Linking Brand Orientation with Service Quality, Satisfaction, and Positive Word-of-Mouth: Evidence from the Higher Education Sector In: Journal of Nonprofit and Public Sector Marketin, 2014, 26, 2, pp. 142−161.
[6] ELTON, E. J. – GRUBER, M. J. (2014): Modern Portfolio Theory and Investment Analysis. 7-th ed. New York: New York University, 2014. 728 p. ISBN-13 978-0470-05082-8.
[7] KARPENKO, L. IZHA, M, RACHYNSKYI, A. (2020): Structural and Wave Analysis Energy Policy of Ukraine in the Context of European Integration. In Lidiia Karpenko, Mykola Izha, Anatoliy Rachynskyi (eds.). Proceedings of the 5 th International Conference on European Integration 2020. Ostrava: VSB-Technical University of Ostrava, 2020, pp. 391-405. / ISBN 978-80-248-4455-8 (print). ISBN 978-80-248-4456-5 (on-line). ISSN 2571-029X. DOI 10.31490/9788024844565.
[8] MAYOROVA, T. (2013): Investment process and financial and credit importance of its activisation in Ukraine: monograph. Kiev: KNEU, 2013, 332 p.
[9] KARPENKO, L. − PASHKO P. (2019): Formation of the system of fair business practice of the company under conditions of corporate responsibility. Academy of Strategic Management Journal, London, 2019, V. 18 (2), рр. 1-8. Print ISSN: 1544-1458; Online ISSN: 1939-6104.
[10] LIPKOVA, L. (2012): Innovation Policy of the European Union. In: Proceeding of the 1st International Conference on European Integration 2012. Ostrava: VSB-Technical University of Ostrava, 2012, pp. 171-178. ISBN 978-80-248-2685-1.
[11] LIPKOVÁ, L., & HOVORKOVÁ, K (2018): Economic situation in Norway after the outbreak of the global financial and oil crises in the context of EU integration trends. In: Research Journal of Economic Annals-XXI, 2018, Vol. 169, No. 1-2, рр. 12-14. ISSN 1728-6239.
[12] LIPKOVÁ, L., & BOHAC, R. (2016): Cataracts of globalization and the economic diplomacy of small states. In: Research Journal of Economic Annals-XXI, 2016, Vol. 159, No. 5-6, рр. 16-19. ISSN 1728-6239.
[13] UKRSTAT (2022). Statistics [online]. [cit. 2022-05-18]. Available at: http:// http://www.ks.ukrstat.gov.ua/
Cite This Article
  • APA Style

    Lidiia Karpenko. (2022). Investment Determinants Modeling for Territorial Development of Southern Ukraine: Institutional Quality and Economic Growth. Journal of Political Science and International Relations, 5(4), 117-126. https://doi.org/10.11648/j.jpsir.20220504.14

    Copy | Download

    ACS Style

    Lidiia Karpenko. Investment Determinants Modeling for Territorial Development of Southern Ukraine: Institutional Quality and Economic Growth. J. Polit. Sci. Int. Relat. 2022, 5(4), 117-126. doi: 10.11648/j.jpsir.20220504.14

    Copy | Download

    AMA Style

    Lidiia Karpenko. Investment Determinants Modeling for Territorial Development of Southern Ukraine: Institutional Quality and Economic Growth. J Polit Sci Int Relat. 2022;5(4):117-126. doi: 10.11648/j.jpsir.20220504.14

    Copy | Download

  • @article{10.11648/j.jpsir.20220504.14,
      author = {Lidiia Karpenko},
      title = {Investment Determinants Modeling for Territorial Development of Southern Ukraine: Institutional Quality and Economic Growth},
      journal = {Journal of Political Science and International Relations},
      volume = {5},
      number = {4},
      pages = {117-126},
      doi = {10.11648/j.jpsir.20220504.14},
      url = {https://doi.org/10.11648/j.jpsir.20220504.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jpsir.20220504.14},
      abstract = {Foreign direct investment plays an important role in the global economy. There is a huge competition among countries for their attraction, since they have a positive impact on the economy of the country that receives the investment. In addition to direct effects - an increase in GDP, budget revenues, and the decrease in unemployment - foreign direct investment also indirectly has a positive impact on the host country in the form of new knowledge, transfer of experience, dissemination of technology. This study is aimed at identifying and assessing the factors (determinants) that affect the inflow of foreign direct investment into the regions of Ukraine. The paper proposes the use of modern tools for monitoring macroeconomic indicators and the study of their non-stationary dynamics in the context of the implementation of investment policy based on the tools of phase and co integration analysis, which makes it possible to obtain a comprehensive assessment and analyze the stability of the macroeconomic dynamics of Ukraine in the context of increasing globalization transformations in the dynamics of territorial development, ongoing in the conditions of global crisis processes. The paper examined the factors that have a significant impact on the volume of foreign direct investment. To verify the hypotheses, an economic-mathematical model with fixed effects is proposed. In this paper, the author proposes an analysis of models of interaction between macroeconomic indicators. The phase trajectories of modeling allow us to conclude that at this stage of the development of the Ukrainian economy, there is a non-stationary and unstable dynamics, the trajectories are oscillatory-periodic or periodic, therefore, insufficient stability of the system can lead to catastrophic consequences. The results which are obtained in the course of econometric modeling will be useful for representatives of public authorities, as they can be used to develop strategies aimed at attracting foreign direct investment in the regional economy.},
     year = {2022}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - Investment Determinants Modeling for Territorial Development of Southern Ukraine: Institutional Quality and Economic Growth
    AU  - Lidiia Karpenko
    Y1  - 2022/11/10
    PY  - 2022
    N1  - https://doi.org/10.11648/j.jpsir.20220504.14
    DO  - 10.11648/j.jpsir.20220504.14
    T2  - Journal of Political Science and International Relations
    JF  - Journal of Political Science and International Relations
    JO  - Journal of Political Science and International Relations
    SP  - 117
    EP  - 126
    PB  - Science Publishing Group
    SN  - 2640-2785
    UR  - https://doi.org/10.11648/j.jpsir.20220504.14
    AB  - Foreign direct investment plays an important role in the global economy. There is a huge competition among countries for their attraction, since they have a positive impact on the economy of the country that receives the investment. In addition to direct effects - an increase in GDP, budget revenues, and the decrease in unemployment - foreign direct investment also indirectly has a positive impact on the host country in the form of new knowledge, transfer of experience, dissemination of technology. This study is aimed at identifying and assessing the factors (determinants) that affect the inflow of foreign direct investment into the regions of Ukraine. The paper proposes the use of modern tools for monitoring macroeconomic indicators and the study of their non-stationary dynamics in the context of the implementation of investment policy based on the tools of phase and co integration analysis, which makes it possible to obtain a comprehensive assessment and analyze the stability of the macroeconomic dynamics of Ukraine in the context of increasing globalization transformations in the dynamics of territorial development, ongoing in the conditions of global crisis processes. The paper examined the factors that have a significant impact on the volume of foreign direct investment. To verify the hypotheses, an economic-mathematical model with fixed effects is proposed. In this paper, the author proposes an analysis of models of interaction between macroeconomic indicators. The phase trajectories of modeling allow us to conclude that at this stage of the development of the Ukrainian economy, there is a non-stationary and unstable dynamics, the trajectories are oscillatory-periodic or periodic, therefore, insufficient stability of the system can lead to catastrophic consequences. The results which are obtained in the course of econometric modeling will be useful for representatives of public authorities, as they can be used to develop strategies aimed at attracting foreign direct investment in the regional economy.
    VL  - 5
    IS  - 4
    ER  - 

    Copy | Download

Author Information
  • Institute of Public Service and Management, National University "Odesa Polytechnic", Odessa, Ukraine

  • Sections