Archive 2004

• 01.04.2004

  Institutional reforms versus selective targeting? Comments on the draft law “On state support of investment and encouraging investment activity” drafted by the Ministry of Economy

  (Code:T30)

  Elements of the institutional framework, i.e., the rules and regulations of the economy and the institutions that enforce them, are the main long-run criteria for private investment decisions. In particular, it is openness to trade and transparency that increase the chances of enhancing domestic investment and increasing FDI. Against the background of Ukraine’s still rather poor institutional framework, specifically targeted investment incentives for pre-defined sectors, regions, and/or types of investment, can be both costly and ineffective. Leaning towards selective targeting, the draft law does not sufficiently serve to sustainably enhance private investment in the long run. 

  Attached file  (199.2 kb)
  Authors:  Френш Річард, Лещенко Наталія
  Tags:  Center of economic research, German advisory group