Freedom House PRU program project "Capital Investment and Economic Behavior of Ukrainian Enterprises" started in May and was accomplished in December 2001.
The idea of the project was to analyze the quality of investment process in the production sector of Ukraine's economy from the perspective of its impact on the improvement in enterprise efficiency.
Investments into the productive fixed assets are typically considered as essentially positive for an economy. Much less attention is usually paid to the aspects of efficiency as well as the role that competitive investments play in the process of selecting of the fittest firms and disseminating their business culture. Meanwhile, these issues are of crucial importance for securing the proper effect of investments on the social sphere and economic growth, which are important for countries with weak market institutions.
The purpose of this project was to analyze the investment process in Ukraine. Particularly, our research group was trying to find an answer to the following questions: Does the investment process facilitate disseminating of the market-oriented business culture in Ukraine? Which factors promote/demote this process?
- Enterprise restructuring