The impact of the institutional environment on the investment attractiveness of the national economy: international experience

Purpose. To substantiate the foundations of institutional support for investment in Ukraine, to analyze international experience in stimulating and regulating investment activity, and develop avenues for enhancing the investment attractiveness of the domestic economy. Methodology. A systemic approach was employed to characterize the set of institutions and institutional structures in Ukraine’s investment sphere. The method of generalization was used to analyze the regulatory and legal framework for investment, while analysis and synthesis facilitated the comparison of international practices in regulating investment and the formulation of recommendations for adapting foreign experience to Ukraine’s national economy. Findings. The study substantiates that the effective formation of an institutional environment in Ukraine requires coordination and interaction among government agencies, businesses, and civil society. Key elements of the institutional system (legislative framework, state regulation, legal guarantees) that directly influence investors’ decisions are identified. Recommendations are proposed for improving tax, budgetary, and infrastructure policies in Ukraine with a view to attracting foreign direct investment. It is argued that the essential factors for attracting investment include a transparent regulatory environment, flexible tax and fiscal policies, stability of the monetary and credit system, and clear legal guarantees for both foreign and domestic investors. Originality. The vectors of influence exerted by public institutions on the formation of a sustainable investment climate amid global instability have been clarified and grouped. The institutional components of state regulation of investment are systematized, and the most effective legal, economic, and administrative tools are identified. The paper generalizes the experience of EU countries in creating a favorable investment environment and reveals the most effective methods for stimulating foreign investors, including tax and financial incentives, as well as the organization of special economic zones and industrial parks, which are proposed for implementation in Ukraine. Practical value. The results can be used to develop projects of state support for investors, optimize legislative support, and create an effective mechanism for stimulating innovation and investment. The proposed directions for improving investment attractiveness will contribute to economic recovery in the postwar period, increase competitiveness, and create a positive investment image of Ukraine.