Assessment of the Condinion of Business Environment in Ukraine in the Context of Management Activity

Abstract

The condition of the business environment in the country plays a significant role in ensuring the efficiency of the economy, achieving stable economic growth and development. For Ukraine, the issue of the condition of the business environment is of particular importance given the high level of integration of the national economy into the global economic system and the country's large-scale need for investment resources. Investors, as a general rule, make balanced management decisions when choosing investment projects, based on a number of factors, including the condition of the business environment in a particular country. The purpose of the article is to conduct a comparative analysis of the most well-known approaches to assessing the state of the business environment, in particular in Ukraine, and to identify possible ways to improve such an assessment. The article analyzes the main existing approaches to assessing the condition of the business environment, particularly in Ukraine. The evaluation capabilities of a number of rating indicators (rates) that are developed by international organizations (Doing Business, The Global Competitiveness Index, The IMD World Competitiveness Ranking, Index of Economic Freedom, Index EBA) have been determined, in terms of their compliance with the requirements of complexity and validity for the adoption of management solutions at the micro and macro levels. The corresponding rating indicators for Ukraine are analyzed in dynamics. The advantages and disadvantages of the most famous of the existing rating indicators for assessing the business environment are demonstrated. It is concluded that rating indicators are focused predominantly on assessing the conditions (primarily regulatory) of the business environment, and not on assessing the actual results of the functioning of economic entities within a certain business environment. The high value of the subjective (expert) factor in their formation was noted. It is proposed to supplement the existing approaches to assessing the business environment with indicators of a resulting nature, in particular, indicators of foreign investment, which is of particular importance for the Ukrainian economy. Comparisons of the dynamics of rating indicators and indicators of direct foreign investment for the Ukrainian economy are carried out.