Foreign Experience in the Application of Investment Incentives for the Development of the Food Industry

Abstract

The article proves that many scientists have studied the problems of providing investment incentives for the development of the industry, who, in particular, studied the state and prospects of foreign and domestic investment. The authors highlight key aspects of the investment process, in particular, that an important factor in building effective investment support not only in the economy, but also in any industry, are foreign investment and investment incentives. Given the above, the purpose of this study is to assess the development of investment in Ukraine based on the analysis of foreign experience of investment incentives and taking into account modern methods and technologies. Tax breaks are a popular form of investment support in the world. Today, Ukraine's closest neighbors, namely European countries, offer a wide range of investment incentives, making these countries increasingly attractive countries, including for foreign direct investment. There is a tendency to intensify competition between countries for new investment projects. Tax incentives for investment are commonly used by many countries, but most importantly, they are becoming an effective tool in countries that are Ukraine's closest neighbors and competitors for new investors. The absence or inadequate attention to such an instrument of support may jeopardize the establishment of a decent rating of Ukraine among foreign investors, even without taking into account other negative aspects in economic and political terms. Thus, today we can state two main problems in attracting foreign investment into the Ukrainian economy: the low level of investment attractiveness against the background of neighboring emerging market economies. To quickly improve this situation, attention should be paid to the most vulnerable indicators of international rankings. Until this issue is resolved, the food and other sectors will have difficulty attracting foreign investment; It is unprofitable for domestic resident investors to invest directly in domestic enterprises due to the unfavorable investment climate, which should be addressed at the state level through deregulation and changes in tax legislation. The scientific novelty of this work is the analysis of foreign experience in investment management by identifying investment incentives for development, which, in contrast to the existing, allows to determine the priority factors of investment development for Ukraine.