Attraction of foreign investments using the economic diplomacy tools

• Published in: Galic'kij ekonomičnij visnik 2023, Vol.83 (4), p.152-158
• Main Authors: Ishchuk, Yuliia, Bila, Iryna
• Format: Article
• Language: English
• ISSN: 2409-8892
• DOI: 10.33108/galicianvisnyk_tntu2023.04.152

Economic interdependence between countries is becoming increasingly higher in the rapid process of integration and globalization. This helps economic diplomacy to become an important part of international relations. It is a necessary and effective tool for ensuring international competitiveness, as it is aimed at developing economic and trade relations between countries, attracting foreign investments and protecting national economic interests. The ability to establish connections and find allies becomes even more important in times of war, internal economic crisis, various political unrest, social problems and Ukraine's loss of the image of a reliable partner in the international arena. It is also about the art of diplomacy and the protection of national interests through partnerships with foreign entities. Conversely, protection of economic interests is also a direction of economic diplomacy. This study aims to understand how economic diplomacy and its tools contribute to the attraction of foreign direct investment in the economy of countries, including Ukraine. The focus of this study will be on the concept of «economic diplomacy» and «foreign direct investment», and the classification of Ukraine's national interests and the ways of their implementation against the background of global crises will also be highlighted. The main directions of domestic economic diplomacy will be analyzed: promoting the development of foreign economic and investment cooperation of Ukraine on a mutually beneficial basis, expanding international cooperation with the aim of attracting foreign investments to the national economy. In particular, the burden of the country's diplomatic representatives in solving economic problems and facilitating the needs of the country's commercial structures has increased sharply, and related issues have also developed at the multilateral level, contributing to the deepening of international cooperation between the two sides of both economic partnership and competition. It was determined that the achievement of economic diplomatic goals in Ukraine is carried out with the help of the following state authorities: the President of Ukraine and his Government, the Verkhovna Rada of Ukraine, the Cabinet of Ministers of Ukraine, the Department of Economic Development of Ukraine.