INSTITUTIONAL ENVIRONMENT AS A BASIS FOR FORMING UKRAINE'S INVESTMENT ATTRACTIVENESS

Abstract

The article reveals the role of the institutional environment as a key factor in shaping Ukraine's investment attractiveness in the context of post-crisis recovery and globalization transformations. It is emphasized that institutions - both formal and informal - determine not only the quality of economic interaction, but also the level of trust, transaction costs, investment motivation, and the overall perception of the state as an investment jurisdiction. The methodology of institutional and neo-institutional economic theory is applied, particularly the concepts of inclusive and extractive institutions (D. Acemoglu and J. Robinson), as well as the "limited access orders" theory by D. North.
It is established that Ukraine's current institutional landscape is dominated by extractive practices, creating an environment of high unpredictability, legal uncertainty, and political risk. Typical forms of institutional dysfunction are analyzed, including the lack of absolute property rights protection, dominance of rent-seeking schemes, political selectivity in regulatory decisions, and reform mimicry. Systemic directionsof institutional transformation are identified: strengthening property guarantees, institutional audit, elimination of monopolism, formation of open-access institutions, and restoration of the state's capacity to act as an independent arbiter in the economic space.
It is substantiated that without qualitative renewal of the institutional foundation, a sustainable inflow of investments is impossible - especially in the context of postwar reconstruction, which requires substantial capital, technology, and managerial resources. It is proven that increasing investment attractiveness is possible only under the condition of a transparent, fair, and predictable institutional environment capable of supporting economic growth, minimizing risks, and restoring trust among both domestic and foreign investors. The critical importance of the state's ability not only to perform regulatory functions but also to act as a guarantor of obligations, ensure effective law enforcement, equal access to resources and rights protection, and counteract any manifestations of rent pressure or administrative arbitrariness is emphasized. It is concluded that the institutional environment must be transformed toward creating a balance between openness to global capital and internal economic sovereignty, enabling Ukraine to become not only an object but also a full-fledged subject of the international investment process.