Institutional Traps When Investing in Ukrainian Economy

Journal Title: Бізнес Інформ - Year 2016, Vol 9, Issue

Abstract

Both the prerequisites and the specifics of emergence of institutional traps when investing in Ukrainian economy have been disclosed. Attention is focused on the not equivalent redistribution of the natural-resource rent, which is a significant determinant of the continued wasteful use of natural resources while maintaining high standards of physical deterioration and obsolescence of fixed capital in the most areas of material production. Structure of the capital investments in Ukrainian economy in 2002, 2009, and 2015 has been analyzed, which provided to reveal a low activity by foreign investors due to the many institutional barriers and insignificant participation in the expanded reproduction of fixed capital of Ukrainian banks and other financial institutions. Institutional traps of clotting activity of foreign investors in Ukraine are thus the following: long-term purposeful policy of local political and business elite to conceal the objects of attraction for foreign investors; excessive passivity of individual units of the central executive powers in attracting foreign investments; lack of real opportunities to use community infrastructure by non-residents, on the basis of public-private partnership agreements; institutional restrictions on the free circulation of agricultural lands.

Authors and Affiliations

Vasyl Golyan

Keywords

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  • EP ID EP101872
  • DOI -
  • Views 111
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How To Cite

Vasyl Golyan (2016). Institutional Traps When Investing in Ukrainian Economy. Бізнес Інформ, 9(), 47-58. https://www.europub.co.uk/articles/-A-101872