E. Sharaya

East European University of economy and management

Cherkassy region investment image development under the integration processes conditions

In the modern world cooperation and interaction are constantly developed both at the level of states and at the level of their regions. Thus, growth of interdependence and development of integration are the dominating tendencies of the world of today. Based of the international labor division economic relations expand and deepen.

Cherkassy region is not an exception from these processes. Due to a favorable geographical position, significant stocks of natural resources and labor potential, business cooperation in investment, trade economic sphere with the companies from 36 countries of the world are developed on its territory today.

Presently the basic partners in the sphere of investment are companies from Liechtenstein, the USA, Germany, France, the Great Britain, and the Russian Federation. Their share comprises more than 90% of foreign investments.

Lately, cooperation in the sphere of investment has been directed to develop the food industry, chemical industry, agriculture, pulp and paper industry, trade and mechanical engineering [1].

In 2009 (tab. 1) increase of foreign investments into the Cherkassy region has amounted $ 222,5 million that is 2,3 times more in comparison with 2005. Great part of direct foreign investments into the region is possessed by Cyprus, the Great Britain, and Germany. Part of these countries had the non-uniform tendency during the years of 2005-2009.

Table 1

Foreign investments into the Cherkassy region during 2005-2009 [3]

$ mln

Year

Cyprus

Great Britain

Germany

USA

France

Russian Federation

Others

TOTAL

2005

23,5

15,6

8,2

4,7

2,9

1,9

42,3

99,1

2006

29

19,2

10,1

5,7

3,5

2,3

46,5

116,3

2007

50,4

33,4

17,5

10

6,1

4

53,6

175

2008

46,6

30,8

15,1

9,3

5,7

3,7

56,9

168,1

2009

81,4

53,9

26,4

16,2

9,9

6,4

28,3

222,5

Recession, observed in 2008, is directly connected with the world financial crisis development and change of direction of the world distribution of capitals.

Structure of foreign investments of the Cherkassy area in 2008-2009, in %:

A – Cyprus; B –the Great Britain; C – Germany; D – the USA; E – France; F – the Russian Federation; H – Others.

Taking into account tendencies of the developed world, and economic tendencies of the region, the administration of Cherkassy Region pays special attention to the development of foreign trade activities and international cooperation.

Today, the foreign trade activities policy for the years of 2009-2011 and in perspective till 2013 is generated; it sets the basic directions and actions for the region administration on coordination and information supply of this sphere, support of export of private enterprises and attraction of foreign direct and indirect investments to the region [3].

Intergovernmental agreements “On promotion and mutual protection of investments” have been signed between Ukraine and approximately 70 states in order to enhance investment cooperation, increase the inflow of private capital to national economy, establish stable investment rules, efficient use of the economic resources. Draft agreements with a number of countries are now under consideration [2].

Among the main problems that must be solved in Ukraine to improve the investment environment should single out the need for professional use of funds and effective management of the Ukrainian enterprises, recipients of investment,improving the legal and organizational basis for increasing capacity mechanisms to ensure a favorable investment climateand to achieve invariance harantovanosti and investor protection.

Literature

1. Bilotserkivets A. Foreign direct investment in Ukraine. "Monitoring the economy of Ukraine" - ¹ 4. - 2005. - ð.16-17.

 2. Money like money (at UNCTAD of direct foreign investment). "Business Herald" - ¹ 1. - 2008. - ð.2-7.

3. www.oda.ck.ua – Cherkasy’s Regional Administration