




































 

 

 
1 

+ Corresponding author 
© 2017 Conscientia Beam. All Rights Reserved. 

 

 

 

INVESTMENT CLIMATE RATING EVALUATION: THE CASE OF UKRAINIAN 
ECONOMY 

 

 

Svitlana Kuznetsova1+ 
Maria Vakulich2 

 

1Professor, Dr., Ph.D., Department of International Finance and Banking, 
Alfred Nobel University, Dnipropetrovsk, Ukraine 
2Ph.D., Department of International Finance and Banking, Alfred Nobel 
University, Dnipropetrovsk, Ukraine 
 

 
(+ Corresponding author) 

 ABSTRACT 
 
Article History 
Received: 16 January 2015 
Revised: 21 January 2016 
Accepted: 28 November 2016 
Published: 16 March 2017 
 
 

Keywords 
Investment climate 
Investment attractiveness 
Rating evaluation. 

 
JEL Classification 
E62, F21, G15, O41. 

 

 
Methodical approaches to the investment climate evaluation have been formed. 
Methodological tools for assessing the investment attractiveness of the economy have 
been classified. To create a database to select the most important methods of 
assessment of the investment climate should undertake a comparative analysis on the 
target group of potential investors, the depth of research, the frequency of assessment 
of the investment climate, purpose assessment of the investment climate. International 
ratings are effective tools that help reduction information asymmetry, and a large 
number of methods of ranking permit the investor to receive information on all aspects 
of the investment attractiveness of the state. Rankings are shaping the image of the 
state, and ignoring the results of the ratings can lead to financial isolation of the state. 
Information on the methodology of the ratings in most cases is transparent, so the 
domestic state institutions have the ability to affect the future results of the ratings in 
the case of related reforms. However, there is no unified model of investment climate 
evaluation of the national economy, which directly affects the state of the investment 
climate of Ukraine's economy and the volume of foreign capital in the state. Rating 
evaluation of the investment climate for the Ukrainian economy has been offered. 
 

Contribution/ Originality: This study uses new estimation methodology of investment climate in the national 

economy, which based on analysis and classification of approaches and tools that are used to investment climate, 

investment attractiveness, business environment rating evaluate, and are directed to information sparseness 

reduction, target orientation of investment climate management. 

 

1. INTRODUCTION 

One of the important conditions of stable development of the national economy is to improve investment 

climate management at the macro level. In Ukraine the problem of intensification of investment processes is subject 

to ongoing scientific discussions related to the research of factors affecting the investment climate, diagnostics 

development of the state management of investment climate, analysis of individual aspects of the investment 

process at the macro- and micro- levels.  

Financial Risk and Management Reviews 
2017 Vol. 3, No. 1, pp. 1-12 
ISSN(e): 2411-6408 
ISSN(p): 2412-3404 
DOI: 10.18488/journal.89.2017.31.1.12 
© 2017 Conscientia Beam. All Rights Reserved. 

 

 

 
 

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Financial Risk and Management Reviews, 2017, 3(1): 1-12 

 

 
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The effective functioning of the investment policy in modern conditions of instability and chaotic economic 

environment requires the improvement of all organizational-economic mechanism of investment, including the 

development of an integrated concept for investment climate management in the national economy. Therefore, the 

deepening of theoretical, organizational and methodological bases of management of investment climate in 

Ukraine's economy deserves special attention. Modern stage of development of Ukraine’s economy is characterized 

by the pursuit of an ambitious goal to ensure sustainable economic growth at the expense of system technological 

upgrading and economic restructuring. The financial crisis, the consequences of which are felt around the world, 

demonstrated the unwillingness of most companies to work in the unstable conditions of the external economic 

environment Kuznetsova (2012). The basis for investment climate management in Ukraine's economy should be 

based on the principles of state regulation, expressed in state financial support for the development of: price, 

competition policy, infrastructure development, search directions of anti-crisis structural investment policy in 

Ukraine. However, a complete scientific study of the problems of investment climate management in an unstable 

economic environment has not been carried out. So, a poorly designed question remains regarding the conduct of 

rating evaluation of state management of investment climate in the national economy. Scientific and theoretical and 

practical significance of the decision of the question led to the choice of the topic of the article.  

Domestic experts devote considerable attention to investment cooperation with Germany, the Netherlands, 

considering these states as an effective mechanism for the integration of Ukraine into the European economic space 

(Computed Results Based on Compiled Data from Report Doing Business, 2015) (Figure A).Increased direct 

investment countries with developed banking systems – Virgin Islands – on 218.9 mln.US dollars, Netherlands – 

270.6 mln. US dollars, and Switzerland – 158.5 mln.US dollars (Figure B). 

The main objective of the world states is to support Ukraine's integration into the European community. 

Shaping the investment climate is a sole-source basis to enhance the role of foreign investment in the development 

of Ukraine and its integration into the world economy.  

Along with the importance of monitoring research it should be noted that when decisions management are not 

sufficiently used indicators of social and economic development of the state for lack of an acceptable methodology 

for calculating the integrated evaluations (ratings, indices) investment development of the state. Therefore, the 

relevance and importance of the development and implementation of integrated approaches to the evaluations of the 

investment climate of Ukraine's economy is obvious and indisputable. Openness, instability, dynamics and self-

organization of the global and domestic economy and the unpredictability of climatic conditions require adequate 

information provision, which is possible if the revision of traditional approaches to the preparation of the financial 

statements (Kuznetsova, 2011). 

 

 
Figure-A. Dynamics of foreign investments in Ukraine, mln.US dollars 

 



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Figure-B. The distribution of investments into Ukraine according to the main countries - investors in 2012,mln.US 
dollars 

 

Modern processes of development of the national economy objectively indicate that solutions to complex 

management challenges, including in the field of investment is impossible without a comprehensive study of the 

economy and optimal management strategies development for the long term. 

 

2. LITERATURE REVIEW 

Urata and Ando (2011) analyzed the FDI climates of the ASEAN countries faced by Japanese and non-Japanese 

foreign firms conducting operations in ASEAN, with a view of identifying impediments to FDI not only in the 

policies but also in their implementation and enforcement and providing useful information to policy makers 

interested in attracting FDI. Direct barriers to FDI, however, still remain, and further efforts to reduce them by 

ASEAN countries are necessary. At the same time, the reduction of indirect barriers to FDI or the promotion of 

FDI facilitation is also indispensable. Escribing and  Pena evaluated the performance of ICA method in the context 

of TFP estimation in extended production functions using ICSs from four countries: India, South Africa, Tanzania 

and Turkey (Escribano and Pena, 2009). They find that the ICA method is very robust and performs reasonably 

well even under different assumptions on the nature of the mechanism generating missing data. 

The main condition for further innovative development of Ukraine’s economy is searching for new ways of 

attracting investments for Ukraine’s future economic development. The issue of investment image and investment 

attractiveness of Ukrainian economy formation was considered in the works of Gavrilyuk (2011) the formation of 

the concept of improving the Ukraine’s investment climate and  innovative paradigm of activities management was 

analyzed by Rossoha (2009). 

Kuznetsova formulated the fundamental features that characterize modern evolution of economic systems and 

determine the investment  position of the state; methods of increasing the information level of investors have been 

proposed (Kuznetsova, 2012).  

Many works devoted to calculation of efficiency, but special attention is paid to the production efficiency or 

effectiveness of the activity. Appropriate models allow us to implement a comprehensive monitoring of the 

investment climate for rapid response and early warning of possible threats and risks when making management 

decisions regarding the investment climate at the micro-, and macro- levels, are presented in Vakulich (2014). 

In conditions of high level of globalization and integration of national economies, world comparison of 

countries by economic performance is one of the most common tools for assessing the efficiency of public 

management and social development, as well as the definition of the state management analysis of investment 

climate in Ukraine's economy. Under investment climate we understand the indirect state value of the investment 

environment over a long period of time determined by the statistical range of economic indicators and factors that 

affect its formation. It is established that the identification of the terms «investment attractiveness» and 

http://scholar.google.com/citations?user=lHh5IvsAAAAJ&hl=en&oi=sra


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«investment climate» leads to contradictions in developed methods for their evaluation. Dedicated and systematic 

determinants of the investment process through the coverage of components (investment attractiveness of the 

investment environment and investment climate), which makes possible the distinction between the essence of these 

concepts. 

 

3. METHODOLOGY  

3.1. Approaches to Investment Climate Evaluation. 

Evaluation of the investment climate of Ukraine's economy and its impact on the dynamics of flows of 

international investment has gained relevance given the transformational nature of the economy, multi-vector and 

impermanence development strategies. There are three most typical approaches to the evaluation of the investment 

climate (Figure C).  

 

 

Figure-C. Methodical approaches to the national economy investment climate evaluation 

 

The first approach is narrowed; it is based on an evaluation of the aggregate macroeconomic indicators. 

However, this method ignores the objective correlation of investment with other resource development factors, 

though attracted by the comparative simplicity of the analysis and calculations. Narrowed approach to the 

assessment of the investment climate States is not possible to obtain objective information about the actual state of 

development of the national economy. In addition, this approach is not devoid of subjectivity, which to some extent 

distorts the actual picture of the investment climate of the state. 

The second approach to the analysis of the investment climate - factor - meets most of the methodological 

requirements and is based on evaluation of a set of factors (Zakharovа, 2009). In the framework of factor approach, 

the authors propose to calculate individual evaluation of investment potential and investment risk, allowing you to 

fully determine the significance of individual factors in the implementation of the project. This approach is based on 

the identification of any factor, characteristic, which determines the investment attractiveness of the state: «the 

market reaction of the state», «state image» and so on, It is versatile and it can be used to analyze systems of 

different levels. The advantages of this approach include: the interaction of many factors, i.e., a differentiated 

approach when determining the investment climate. However, this approach has the disadvantage, such as opacity, 

the methods of isolation of factor characteristics of the investment climate. 

The third approach is risk. Under this approach considers two components: investment potential and 

investment risk. Investment potential is estimated on the basis of macroeconomic performance and investment risks 

are assessed from the standpoint of the probability of loss of investment income. The advantage of this approach is 

to estimate the component of risk that is not present in the previous two approaches. 

 



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3.2. Investment Climate Evaluation Tools 

The tools that are used to evaluate varying degrees of investment climate in the state, can be divided into:  

 1) Credit ratings;  

 2) Economic indexes. 

Ratings are used for financial investors guide regarding the reliability of the investments in debt obligations of 

companies, municipalities or governments, stock - on investments in corporate law firms. This allows investors to 

generate a high-quality investment portfolio and quickly manipulate assets in the event of a change in rating. At 

first glance, the ratings have nothing to foreign investment. In fact, foreign investment can be divided into direct 

and portfolio. Ratings are formed solely for portfolio investment and do not take into account the trends of direct 

investment. However, this view is unjustified because portfolio investments are more mobile, their implementation 

is associated mainly with the market, macroeconomic and political risks. At the same time, foreign direct 

investments are exposed to the same risks, as well as optional: industrial, commercial, construction, etc. 

 Therefore, the market portfolio is an important indicator for investment decisions and in the field of direct 

investment. The ratings also apply to state and municipal loans. Trust portfolio investors to securities of States 

projected on the trust direct investors to invest in real business of its businesses.  

Economic indices and rankings are different in nature. For example, economic indexes differ from the ratings of 

the objects of study and consumers. Unlike ratings, economic indexes consist, as a rule, only for individual states. 

They characterize certain aspects of the national economy, such as: competitiveness, economic freedom and 

corruption. These indexes are strategic investors in the implementation of their strategy of investing abroad, in 

particular in the field of foreign investment. Although ratings and indexes differ, however, a significant correlation 

indicates the position of the States in them. In fact, almost never occurs a situation in which the state was ranked as 

the highest positions, and index is the lowest, or Vice versa. 

Evaluation of investment attractiveness of Ukraine only international institutions has, in comparison to the 

state as a whole and its individual indicators with other countries, and also some areas of concern. Certain problems 

can be attributed to the lag effect, which manifests itself in long time intervals, which are technologically based 

rating and which, as a rule, amount to several months or more. That is, it should be understood that any rating of 

the current year is based on main statistical indicators of the last or last year. The same applies to the components 

of the rating, based on the expert survey. The problem of collecting statistically correct data for most countries in 

the world only exacerbates these problems by increasing the time intervals. In conditions of high level of global 

competition, there is no possibility to use the data of the world rankings to build a ranking of States from the 

perspective of the objectives of the national system of public administration as a result of their time delay. Foreign 

investors rely on the evaluation of numerous consulting firms that continuously monitor the investment 

attractiveness in many countries around the world, including in Ukraine. However, evaluation by foreign experts 

without the participation of Ukrainian biased. 

 

3.3. Methods of Economic Investment Attractiveness Evaluation 

The developed technique rating of investment attractiveness of the are divided into three groups: 

 The methods based on different experts; 

 The methods based on the statistical information; 

 The combined methods based on expert-statistical calculations. 

Analyzing the state of the investment attractiveness of the country and its position in the rankings, it is 

necessary to pay special attention to the individual components of such evaluation. In fact, the increase in ratings is 

solely under the influence of changes in individual indicators evaluation. Methods for the determination of the 

indices also vary and are based on the measurement of the points, shares, rate of change etc., However, common to 

most methods is that in the end, the objects of evaluation (state sector) are ranked according to the degree of 



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deterioration of the investment attractiveness (from best to worst) and are grouped in several rating group 

(«leaders», «the pursuers», «main array», «objects with insufficient level of attractiveness» and «outsiders»). 

Ratings of national and international agencies is the effective tool for analysis of indicators of investment 

attractiveness of countries and have a large influence on the decisions regarding the investment and distribution of 

the global flow of foreign investment. 

In the economic literature there are different approaches to the evaluation of investment attractiveness of the 

national economy, which differ depending on the purpose of the study, the number of analyzed parameters and their 

qualitative characteristics, and on the selection of indicators: methodology for the assessment Standard & Poors 

(Official Website of Standard & Poors, 2015) Price water house Coopers (Official Website of Pricewaterhouse 

Coopers, 2015) Moody’s Investors Service (Official Website of Moody’s Investors  Service, 2015) Journal 

«Euromoney» (Official Website of Journal Euromoney, 2015) «The Doing Business» (Report Doing Business, 

2014). 

Financial and statistical practice has developed (Malyutin, 2011) several methodological approaches to the 

estimation of investment attractiveness, systematization which made it possible to combine them into three 

approaches: 

 Statistical 

 Expert 

 Rating  

The statistical approach is based on statistical analysis of actual data on investment and is based on the 

assumption that high levels of certain indicators showed high investment attractiveness of the economy. However, 

it should be noted that the method is formal and based on the specific social - economic indicators. In addition, the 

statistical approach allows taking into account only the fact of the investment and does not take into account many 

factors, taken by investors in mind. 

The method of expert evaluation is the expert in the evaluation of different development indicators: expert 

their own reasons and their own experience to select the most important indicators, analyzes their development 

dynamics and forms conclusions regarding the investment climate. It should be noted that this method often turn to 

foreign investors. The advantage of using an expert approach is the adaptation of parameters and factors that are 

studied, for the needs of a particular investor or an in-depth analysis of the attractiveness of certain sectors of the 

economy. However, substantial disadvantages of using the method of expert evaluations should include the 

subjectivity of the assessment and the dependence of the conclusions from the position of expert. 

Rating approach includes two varieties - rating-analytical approach and rating-based approach polls. Rating-

analytical method is the analysis of various aspects of economic development, the creation on their basis of 

analytical indicators, further grouping and consolidation and the formation of an integral index, which is based 

rating of the state and is determined by its position in the ranking. This approach has the most widespread use. The 

advantages of the approach include the ease of use and ease of interpretation of results, and the disadvantages - 

significant dependence on macroeconomic indicators, the opacity of the indicators, which are grouped, not taking 

into account regional specificities. As a result, the obtained value rating only indicates the location of the national 

economy in the rating, but says nothing about specifics of the region and priorities for investment. However, there 

are no studies related to the assessment of the investment climate of the state. 

Preliminary study (Vakulich, 2014; Kuznetsova and Kuznetsov, 2015) revealed the following shortcomings of 

the existing approaches to the assessment of the investment climate for the economy of Ukraine:  

 Applied assessment tools designed to assess, primarily financial rather than real investments;  

 Borrowed methods with respect to real investment, designed for a stable economy, which clearly 

manifested all economic laws and are not adapted to the real economic situation in Ukraine;  



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 Most methods are based on the analysis of haphazard sets of indicators of the financial condition of the 

company, there is retrospective in nature, while investor interest in future performance;  

 The vast number of methods based on expert judgment and of the nature of uncertainty because they 

reflect the subjective opinion of experts. 

3.4. Classification of Rating Evaluation of Investment Attractiveness 

To provide the opportunity for effective evaluation of the investment climate of the state proposed to rely on 

the classification of rating methodologies of estimation of investment attractiveness, as one of the components of the 

investment climate in the national economy, which is based on compiled data (Handbook on Constructing 

Composite Indicators, 2011) and is represented in Figure D. 

  

 
Figure-D. Classification of rating evaluation of investment attractiveness of the national economy 

 

To create a database to select the most important methods of assessment of the investment climate should 

undertake a comparative analysis on the following criteria:  

 The target group of potential investors,  

 The depth of research, 

 The frequency of assessment of the investment climate, purpose assessment of the investment climate.  

Determinants that determine the specificity of such selection in a chaotic environment can be considered 

determinants offered for financial monitoring: the dynamism and the pressure of the external environment; the 

specifics of the business and staff (Kuznetsova, 2014). 

In the system of investment climate management it is advisable to put an investment partnership that would 

contribute to the alignment of interests and actions of the subjects of investment relations. The basis for creating a 

positive investment image is the creation of effective organizational and economic framework for the investment 

climate in Ukraine's economy management. A key element of this concept is coordinating and regulating the nature 

of the impact of the management subsystem to manage, which is ensured through the use of evidence-based 

approaches, principles, methods and management tools.  

In the economic literature the investment attractiveness is considered as a generalized characteristic of the 

advantages and disadvantages of the investment object. When you study the investor is a subjective evaluation of 

the macroeconomic situation in the country. 



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Investment attractiveness is determined by the compromise of the interests of the investor and recipient of 

investment. Its level increases with the rapid achievement of mutual understanding between subjects of the 

investment process.  

The most actively used criteria for evaluation of investment attractiveness (Official Website of World Bank, 

2015); (OWSP, 2015); (OWMIS, 2015) are presented in Table 1. 

 
Table-1. The main criteria of investment attractiveness evaluation 

EVALUATION CRITERIA 

Standard & Poor’s  World Bank Group Moody’s Investors  Service 

Investment Attractiveness Investment Attractiveness Investment Attractiveness 

1) transparency and information 
openness; 
2) budgeting;  
3) long-term investment planning and 
financial planning;  
4) income and expenditure 
management; 
5) debt management;  
6) cash and liquidity management;  
7) transparency of the political-
administrative system;  
8) external risks management. 

1) business operations; 
2) construction; 
3) access to electricity; 
4) registering property; 
5) getting credit; 
6) protection the investors rights; 
7) taxation; 
8) international trade; 
9) execution of contracts; 
10) degree of solvency; 
11) employment of the labor force. 

1) background and history of the 
Issuer;  
2) industry/circular trend;  
3) national political and regulatory 
environment;  
4) quality control, experience, track 
record and attitude to risk; 
5) management structure;  
6) key operational and competitive 
position;  
7) corporate strategy and philosophy;  
8) debt structure;  
9) financial position and liquidity 
sources. 

 

 

It is established that there is no single approach to the investment attractiveness evaluation of the national 

economy, and no evaluation of the investment climate of the national economy. When rating an investment climate 

evaluation, consider the following issues:  

 Reducing the use of expert evaluation; 

 Complex external economic factors in the evaluation; 

 The analysis based on various sources of information. 

 

4. RESULTS  

The results of researches on the problem given the opportunity to clarify the essence of the investment climate 

and to consider this category as a complex feature, which gives grounds for victory in the competition for 

investment resources on the market on the basis of the interests of investors.  

On the country's investment climate significantly affects not only the General state of its economy, but also the 

business environment, in particular, the degree of state intervention in the economy and the level of corruption. The 

world Bank rating Doing Business ease of doing business in Ukraine (Table 2). 

 
Table-2. Compare of countries positions in the rating «Doing Business» 

State 
Doing 

Business 
2012 

Doing 
Business 

2013 

Doing 
Business 

2014 
Change State 

Doing 
Business 

2012 

Doing 
Business 

2013 

Doing 
Business 

2014 
Change 

Singapore 1 1 1 0 Kazakhstan 56 49 52 +3 

Hong Kong 2 2 3 +1 Belarus 60 58 57 -1 

New Zealand 3 3 5 +2 Azerbaijan 66 67 80 +13 
USA 4 4 4 + Kyrgyzstan 69 70 71 +1 

Denmark 5 5 4 -1 Mongolia 88 76 63 -13 
Georgia 12 9 15 +6 Moldova 86 83 86 +3 

Germany 18 20 18 -2 
Russian 

Federation 
118 112 62 -50 

Japan 20 24 29 +5 Ukraine 152 189 96 -93 

Armenia 50 32 33 +2 Tajikistan 147 141 144 +3 
 

Source: CRBCDRDB (2015) 

 



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Ukraine, despite a significant deterioration in the economic situation since the beginning of the year, became 

the first hundred in the ranking of ease of doing business «Doing Business – 2015», developed by experts of the 

world Bank and the International Finance Corporation, rising to 16 positions and ranked 96th place (Table 3). 

 
Table-3. Ukraine’s rating regarding the business environment for 2010 – 2014 

Indices 
Years Change 2014 

to 2013 2010 2011 2012 2013 2014 

Complexity of doing business,  
general evaluation 

147 149 152 137 98 39 

For sub-indexes: 

 business opening 136 118 116 50 47 3 

 the connection to the mains supply  168 169 170 166 41 145 

 obligations under the contract 43 44 44 42 40 2 

 bankruptcy 145 158 158 157 97 98 

 the loan 30 21 23 24 13 11 

 the licensing system in construction 181 182 182 183 162 21 

 the foreign trade 139 136 144 145 148 -3 

 the investor protection 108 108 114 127 128 -1 
 

Source: CRBCDRDB (2015) 

 

Ukraine entered the hundred countries in the world Bank ranking on the ease of doing business «Doing 

Business – 2015», improving over the year, its position at once by 16 points and ranked 96th place out of 189. The 

data presented in the report of the experts of the OWWB (2015) and the International Finance Corporation (IFC). 

According to estimates Ukraine is in transition stage from development due to the factor advantages to 

development through efficient use of capacity. In other words, the domestic economy still operates mainly due to 

extensive development, which is due to the priority value of the Ukrainian traditional forms of economic activity, 

and low investment and weak public support for high-tech sectors and those that create high added value. Trambik 

noted that іn 2013 – 2014 in Ukraine were implemented significant reforms in the three regulatory areas (starting a 

business, paying taxes, registering property) that allowed her to become one of the world's top ten economies that 

are most actively reformed (Trambik, 2013). The analysis will begin with a review of the ratings, which are 

compiled research organizations The Global Competitiveness Report 2014-2015 (n.d); Official Website of IMD 

(2015);  Official Website of Cato Institute (2015);  Official Website of the Research Center Brookings Institution 

(2015) (Table 4). 

 

Table-4. Research organizations that assess the economic and social development of the state, 2014 

Organization Basic rating The place of Ukraine 

Institute of management development  
(IMD)  

The competitiveness rating 54 from 59  

The Cato Institute The economic freedom rating 161 from 183 
Research center  Brookings Institution  The index of state weakness, countries 104 from 141  

 

Other influential rating of this group is the index of competitiveness of economic growth, which is calculated 

by the world economic forum. A feature of this rating is that it evaluates the ability of the economy to maintain 

stable economic growth in the medium and long term. 

Table 5 provides a list of such organizations and the place of Ukraine in the relevant ratings (GCR2014-2015, 

n.d); (OWWB, 2015); (Official Website of World Economic Forum in Davos, 2015); (Official Website of Program of 

Human Development UN, 2015); (OWPC, 2015); (OWIMD, 2015); (Official Website of UNESCO, 2015); (Official 

Website of The European Bank for Reconstruction and Development, 2015). 
 
 
 



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Table-5. International organization that evaluate the economic and social development of the state 

Organization Basic rating 
The place of Ukraine 
2014 

The World Bank Business operation rating 137 from 183 

The World economic forum in Davos  
Rating of countries involvement in 
international trade 

71 from 121 

Program of human development UN  Human development rating 69 from 169 

Price water house Coopers  
Ranking of countries according to the level of 
complexity of the tax system 

177 from 178 

The International monetary fund  Macroeconomic indicators - 

UNESCO 
Rating of expenditure on research and 
development 

- 

The European Bank for reconstruction 
and development 

Macroeconomic indicators - 
 

 

 

The index growth competitiveness allows you to determine how competitive advantages of the investigated 

state and specific weaknesses. The third group of subjects who are able to reduce information asymmetry in the 

global investment market, are the rating agencies.  

Table 6 lists the most influential of them and the prediction for Ukraine. 

Priority directions of scientific-technical progress should be targeted for investment and innovation activities and 

resources. 
 

Table-6. The list of news agencies that evaluate the investment attractiveness of the world countries, 2014 

News Agency The basic rating (index) 
The place of 
Ukraine 

Journal «Euro money» (Great 
Britain)  

Country risk rating 89 from 186 

Journal «News week»  (USA)  
Ranking of the best countries (Newsweek's «The World's 
Best Countries») 

49 from 100 

Journal «Forbes» (USA)  
Ranking of countries with the most favorable conditions 
for business («Best Countries for Business») 

105 from 134 

Journal «Economist» (Great 
Britain))  

Rating of the attractiveness of the entrepreneurial 70 from 82 

Journal «Foreign Policy» (USA)  
Globalization index 42 from 72 
Failed States index («Failed States Index») 110 from 177 

Journal «International Living» 
(USA)  

Ranking of countries according to the level of life 
(Quality of  Life Index») 

73 from 192 

Journal «Business Insider» (USA)   Ranking of countries with the threat of default 6 from 18 
Journal «Institutional Investor» 
(USA)  

Assessment of the creditworthiness of countries 90 from 178 
 

Source:Computed results based on compiled data from GCR2014-2015 (n.d); OWJE (2015); Official Website of Journal Newsweek (2015); Official Site of Journal 
Forbes (2015); Official Website of Journal Economist (2015); Official Website of Journal Foreign Policy (2015); Official Website of Journal International Living (2015); 
Official Website of Journal Business Insider (2015); Official Website of Journal Institutional Investor (2015). 

 

On the development of modern and future high-tech industries can claim only those States that are able to 

provide a high level of science, technology, education, culture, organization, management and labor discipline. 

Speaking about foreign investment, it is necessary to take into account world experience, which shows that the 

greatest success in attracting foreign investment to reach those States that, first, set this goal as a priority in its 

economy, and secondly, using the largest possible set of events. 

 

5. CONCLUSIONS  

It is revealed that the methodical approaches to the evaluation of investment attractiveness have several 

disadvantages: valuation techniques based on the analysis of a particular haphazard statistics, are disparate and 

unacceptable for a comprehensive diagnosis of the investment climate; they mostly reflect the subjective opinion 

based on expert judgment. 



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There are two key tools that are used to evaluate the investment climate in the state: credit ratings and 

economic indexes. They characterize the components, indicators and management factors of the investment climate, 

which limits the level of sparseness of the information and provides the target orientation of rating assessment of 

the needs of the subjects of management of investment climate in the national economy. International and national 

rating agencies evaluation of investment activity in the economy, and not the investment climate, as such. This 

stresses the importance of establishing an effective system of state management of the investment climate of the 

national economy to ensure sustainable long-term strategic development of the investment climate and growth in 

the inflow of foreign investment capital. 

 
Funding: This study received no specific financial support. 
Competing Interests: The authors declare that they have no competing interests. 
Contributors/Acknowledgement: All authors contributed equally to the conception and design of the 
study. 

 
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