Foreign direct investment in Ukraine: A pathway to sustainability

The paper investigates the role of foreign direct investment (FDI) in the economic and infrastructure recovery of Ukraine, offering a comprehensive analysis of its drivers, trends, and future potential. The study identifies FDI as a critical driver for restoring economic stability and fostering sustainable development in Ukraine, particularly in light of the extensive destruction caused by the ongoing war. The aim of the paper is to investigate the role of foreign direct investment in economic recovery and war-affected infrastructure reconstruction in Ukraine for sustainable development.
The methodology involves a multidimensional approach, incorporating quantitative analysis of FDI inflows and outflows from 2013 to 2023 in Ukraine, regulatory framework examination, correlation and regression analyses to identify key factors influencing FDI dynamics, forecasting and others. By analyzing, forecasting and comparing Ukraine’s FDI trends with selected European countries, particularly in the context of geopolitical challenges and economic instability, the study provides a thorough understanding of the unique barriers and opportunities Ukraine faces in attracting FDI.
The results reveal that FDI in Ukraine has been significantly influenced by political instability and the ongoing war, with inflows showing notable volatility. Despite these challenges, resilience in the economy has been demonstrated, driven by international financial support and domestic recovery efforts. The originality of this research lies in its focus on the specific context of post-war recovery in Ukraine, offering new insights into how FDI can serve as a catalyst for sustainable development. By identifying strategic areas for investment and addressing current legislative barriers, this study provides valuable contributions to the broader understanding of FDI’s role in post-war economic recovery. Further research is required to refine analyses of factors, develop predictive models and explore emerging FDI trends as geopolitical conditions evolve.