Impact of foreign capital on the economic development of Ukraine

The article examines the impact of foreign capital on the economic processes that took place in Ukraine during 2000–2019 pp. Among foreign investors, Ukraine seeks to position itself as an investment hub, in which it is profitable to invest and develop business. In some places, the impression is that foreign investment is identified with a panacea that will enable Ukraine to reach the level of development of world leaders. At the same time, the study concluded that the efficiency and quality of FDI, portfolio investment and debt capital raises considerable doubts. For 2000 and 10 months of 2019, the total net inflow of direct, portfolio foreign investments and foreign loans to Ukraine amounted to $ 185.3 billion. USA. At the same time, such a large financial resource did not become a catalyst for structural changes in the economy and the development of high-tech production. Instead, the concentration of foreign capital in certain economic activities contributed to the consolidation of the raw material orientation of this country's economy and exacerbation of domestic economic problems against the backdrop of a large influx of speculative capital. Much attention is paid to the geographical structure of foreign investments and debt capital, which testifies to the significant influence of offshore jurisdictions on the activities of domestic businesses and the formation of their behavior. Offshore capitalization is a defining feature of national business, which has become one of the main causes of the distortion of the model of Ukraine's economic development. The article focuses on the need to improve public policy on attracting foreign capital in Ukraine. In particular, it is proved that the lack of proper control over the concentration of foreign capital in certain sectors causes significant imbalances, which, under the influence of other factors, exacerbate the crisis. In view of this, it is advisable at the state level to analyze the "toxic impact" of foreign capital on structural changes in the economy and its impact on the economic security of Ukraine. The article was prepared in the framework of R&D on "Financial risks of doing business in Ukraine: non-financial corporations sector" state registration No 0118U006088.