Foreign investments in the economy of the Black Sea subregion of Ukraine as a factor in its post-war recovery

Ukhanova Inna
PhD in Economics, Associate Professor of International Economic Relations Department, Odesa National Economic University, Ukraine, e-mail: inna.uhanova@gmail.com, ORCID ID: https://orcid.org/0000-0003-3510-382X

Cite this article:

Ukhanova, I. (2024). Foreign investments in the economy of the Black Sea subregion of Ukraine as a factor in its post-war recovery [Inozemni investytsii v ekonomiku Prychornomorskoho subrehionu Ukrainy yak chynnyk yii povoiennoho vidnovlennia], Socio-economic research bulletin, Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 3-4 (90-91), pp. 205-218.

Abstract

The article investigates the international investment activity of the Black Sea subregion of Ukraine. The purpose of the article is to study the peculiarities of international investment cooperation of the Black Sea subregion of Ukraine as a factor of economic recovery in the post-war period. The main methods used in the research are analysis and synthesis, generalization, which made it possible to conduct a study of the scientific and theoretical foundations of international investment cooperation; graphic-analytical method, statistical toolkit - for analyzing the state and dynamics of foreign direct investment attraction in the economy of the Black Sea Subregion and the regions included in it; correlation-regression analysis - to analyze the influence of foreign investments on the macroeconomic development of the Black Sea subregion and determine the reserves of such development in the post-war period. The paper analyzed the macroeconomic indicators of the subregion, determined the state and dynamics of foreign direct investment, investigated the geographic and sectoral structure of direct foreign investment in the Black Sea subregion, conducted a correlation-regression analysis to determine the impact of direct foreign investment on the economic development of the subregion. The analysis of international investment cooperation in the Black Sea subregion of Ukraine allowed us to conclude that Odessa region dominates international investment cooperation in the Black Sea subregion. It was determined that in the sectoral structure of foreign investments, approximately half is accounted for by port logistics, the active attraction of foreign capital in the pre-war period was observed in the energy sector and the processing industry (mainly related to the agro-industrial complex). It was noted that the connection between international investment cooperation and the economic development of the Black Sea subregion is not significant, but there is a noticeable connection between FDI and the average wage in the subregion and their impact on the growth of the gross regional product. Proposals regarding directions of post-war development of international investment cooperation of the Black Sea subregion have been formulated, taking into account key reserves for recovery and the need to reform the domestic investment climate.

Keywords

foreign direct investment; gross regional product; economic recovery; economic growth; impact of FDI.

JEL classification: R110; R190; G200; DOI:https://doi.org/10.33987/vsed.3-4(90-91).2024.205-218

UD classification: 330.322:355

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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