The Review of Trends and Foreign Direct Investment Estimates in Ukraine and Poland

Abstract

Abstract The article addresses foreign direct investment as an economic growth factor. The dynamics of the main economic development parameters of Poland and Ukraine is analyzed. The estimates are based on such parameters as economic development level, GDP, ease of doing business indicators, economic development index, economic freedom index, corruption perception index, etc. Poland’s advantages compared to other countries when establishing the mechanism of foreign direct investment attraction are determined. Special attention is focused on the factors that impact the development of the investment environment in Ukraine. The investment dynamics in both countries is specified. The impact of hostilities on investment opportunities not only in Ukraine but also in Poland is described. The article examines the experience of the post-war recovery in the leading countries worldwide, namely the experience of European countries in manufacturing restoration, the experience of Japan in the efficiency of fiscal and education reforms, and the post-war experiences of Israel and West Germany in the context of the future reconstruction of Ukraine and chances to attract the attention of a foreign investor. The priority industries for investment in Ukraine and Poland in the nearest future are characterized. Based on the conducted analysis, a model of foreign direct investment dependence on various economic parameters is formed. The component analysis is applied to perform the gradation of the parameters’ impact. The research enables constructing the foreign direct investment trend models in both countries and making the interval and point estimates for the next four years. The recommendations on investment climate improvement in Ukraine are offered.