DETERMINANTS AND DYNAMICS OF INVESTMENTS IN REGIONS’ INDUSTRY IN THE CONTEXT OF MILITARY THREATS
DOI:
https://doi.org/10.56197/2786-5827/2024-3-4-4Keywords:
direct investments, spatial industrial development, regional economy, capital investments, economic recoveryAbstract
Introduction. The geographic structure of investment in industry can have a decisive influence on the location of industrial production in territories and regions. In the conditions of a full-scale invasion, there was a significant rethinking of investment strategies in the Ukrainian economy resulting in a shift in the attention of investors to safer territories. The purpose of the study is to identify trends in the dynamics and regional structure of investments in the industrial sector of Ukraine during the war and to develop recommendations regarding the recovery of the regional economies.
Materials and methods. The research is based on official statistical data, as well as the results of scientific studies by domestic and foreign scholars. General scientific methods used in the research include analysis and synthesis, induction and deduction, comparison and generalization, as well as historical and logical approaches. As specific methods the statistical and economic analysis, analysis of phenomena structure and dynamics indicators, expert evaluations, content analysis of available scientific and analytical publications, and systems analysis were applieds.
Results and discussion. Security has significantly influenced the selection of locations for new industrial projects in Ukraine, leading to the redirection of investments to more stable regions. From 2022 to early 2024, there was a withdrawal of direct investments from many regions, with the most affected being those that experienced active shelling. However, Ternopil, Cherkasy regions, and Kyiv saw an increase in investments during the war due to key projects in the processing and agro-industrial sectors. The main investors remain companies already operating in Ukraine, and the western and north-central regions are the most attractive for new investments. The post-war recovery strategy should include support for industrial parks and new areas of growth to strengthen the economy of affected regions and attract new investments.
Conclusions. The research not only deepens the understanding of the processes occurring in the field of investment in the industrial sectors of Ukraine's regions but also outlines potential paths for further development of industrial sector investment under conditions of instability. Current investment trends contribute to the formation of new industrial centers with lower security risks, enhancing the investment attractiveness of Ukraine's western and central regions. The government coordination of investments on spatial and sectoral scales is capable of strengthening regional economic potential.
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