THE IMPACT OF CORRUPTION ON THE INVESTMENT ATTRACTIVENESS AND COMPETITIVENESS OF BUSINESS ENTITIES IN UKRAINE IN THE CONTEXT OF POST-WAR ECONOMIC RECOVERY

This article examines the systemic impact of corruption on the investment attractiveness and competitiveness of business entities in Ukraine during the post-war economic recovery. Corruption is conceptualized as an institutional distortion that increases transaction costs, reduces the expected return on investment, and distorts competitive market mechanisms by creating barriers to entry and eroding trust in public governance. Based on a comprehensive theoretical and methodological framework and empirical modeling, the study demonstrates that even moderate improvements in anti-corruption performance may lead to a significant rise in foreign direct investment inflows and enhanced firm-level productivity. The paper employs international indices, macroeconomic data, and econometric estimates to quantify the negative correlation between perceived corruption and investment volumes. It further outlines the mechanisms through which corruption hampers competition by fostering monopolistic structures, suppressing innovation, discouraging new market entrants, and privileging rent-seeking behaviors over operational efficiency. Corruption also skews resource allocation within the postconflict recovery process, undermining the credibility of state institutions and increasing risks for both domestic and foreign investors. The findings confirm that corruption is not merely a moral or legal issue but a key structural barrier to sustainable development, economic modernization, and integration into global value chains. Policy recommendations include strengthening judicial independence, expanding digital governance tools, ensuring transparency in the allocation of recovery funds, institutionalizing open public procurement platforms, and reinforcing multi-level accountability mechanisms. These measures are critical for Ukraine to attract long-term investment, stimulate economic resilience, restore investor confidence, and enhance the global competitiveness of its private sector.