FOREIGN DIRECT INVESTMENT AND ITS IMPACT ON ECONOMIC AND ENVIRONMENTAL DEVELOPMENT

Abstract

In the development of the national economy investment plays a crucial role, and the investment process is a determinant of economic development. The investment process is understood as the process of investing resources into real objects in order to achieve the expected level of profitability in the form of material income or social benefits. The investment process does not exist by itself, its role and importance is manifested both in a specific sphere of activity and in the system of economic relations as a whole. The study of the investment process as an integral economic system is possible through the reflection of its constituent elements: the subject, the object of investment, the interaction between them and the environment in which these elements interact. And by analyzing the stages of the investment process, it is possible to understand at what stage problems arise that reduce the likelihood of attracting investment, that is, one can clearly identify a specific problem and easily fix it. In addition, in order to better understand the investment process, it is necessary to consider the methods of its regulation, because the methods and mechanisms of regulation are extremely important: they can both stimulate investment activity and reduce it. It is said that investment always has a positive effect, but this is not true. The article examines the positive and negative effects of attracting foreign direct investment. The investment process through the prism of the amount of FDI in the economy of Ukraine is also considered, the main directions of investment are defined. Since investment is the basis for the development of various levels of the economic system and is necessary for the modernization of the economy and increasing the rate of production, their attraction contributes to the development and expansion of the country's potential. In turn, attracting investment depends on the quality of implementation and regulation of the investment process. The results of the investment process improve the overall macroeconomic indicators of the country's economic development, it has a positive impact on the country's image on the world arena. Thus, investments are the basis of effective functioning of the country and the investment process deserves attention.