ASSESSING THE FEASIBILITY OF FOREIGN DIRECT INVESTMENT IN THE NATIONAL ECONOMY

Abstract

The article argues for the use of methods for assessing the feasibility of foreign direct investment in the national economy of Ukraine. The article details a promising direction of development, such as creating an investment-friendly environment by harmonising regulatory and legal legislation and easing the tax burden for foreign investors in strategic sectors of the economy, which are so important in the context of warfare and are important not only for post-war recovery but also for the sovereign existence of the state. To achieve this goal, the study identified the main stages of an integrated approach to assessing the feasibility of investment projects, argued the payback criteria for investment project implementation, and considered and studied risk factors under conditions of uncertainty. The article argues for identifying trends in the dynamics of foreign direct investment in the Ukrainian economy. From a practical point of view, such a study allows analysing the dynamics of foreign direct investment with due regard for the error, determining the trend in the balance of payments and considering debt indicators in the difficult conditions of the problems of military reconstruction and functioning of the national economy. It has been found that, based on the dynamics of analytical indicators of foreign direct investment, there is a deterioration in the investment attractiveness of the national economy due to a reduction in the fund of foreign direct investment in Ukraine and a decrease in the investment attractiveness index. The indicators and trends of foreign direct investment are detailed, allowing to draw conclusions about the weaknesses and strengths, opportunities and threats of foreign direct investment in the national economy. Based on the fundamental principles and regularities of the research process, the main trends affecting the indicators of foreign direct investment in the national economy, such as the financial crisis of 2008, the invasion of Crimea and the outbreak of hostilities in the East of Ukraine in 2014, COVID-19, a full-scale war in Ukraine, and the likelihood of default, are identified from a practical point of view. Thus, given the long-term prospects of the dynamics of the military conflict not only on the territory of Ukraine in 2025, but also global trends in geopolitical tensions in the world, it is necessary to introduce analytical technologies that will substantiate and create conditions for making positive decisions for Ukraine in the form of foreign direct investment. Therefore, there is a need for a feasibility study to assess the feasibility of foreign direct investment in the national economy, which allows for in-depth analytics, cost optimisation, reduction of error risks and increased likelihood of sustainable financing in the national economy. Regulatory changes and harmonisation of national standards with international requirements are detailed, opening up new opportunities for national enterprises to enter the global market. The introduction of flexible mechanisms for adapting to regulatory changes can reduce the payback period of investment projects, break down administrative barriers, and simplify certification processes, which will allow for the efficient and rapid implementation of investment projects with minimal risks and high returns. Thus, the prospects for implementing mechanisms for managing innovation development and analytical assessment of the feasibility of an investment programme include technological transformation, transparency of stakeholder responsibility, digitalisation of processes, improvement of regulatory procedures, expansion of international cooperation, and introduction of new business models that will allow for additional funding to the national economy through investment attractiveness and profit. A systematic approach to the assessment of foreign direct investment that takes into account global trends and market characteristics ensures a high probability of increasing investment attractiveness in strategically important areas of the national economy.