Encouraging trade and foreign direct investment in Ukraine

Introduction -- Foreign trade, foreign direct investment, and the Ukrainian economy -- Barriers to trade and foreign direct investment in Ukraine -- Recommendations for improving the climate for trade and foreign direct investment in Ukraine

Despite the fact that two ostensible economic policy priorities in Ukraine are to liberalize trade and improve the climate for foreign direct investment (FDI), successive Ukrainian governments have found it singularly difficult to pass legislation and implement policies to address these priorities. The study's primary objective was to analyze Ukraine's current environment for foreign trade and FDI and to develop policy proposals that will foster Ukraine's foreign trade and attract more FDI, especially with respect to the United States. The report describes existing barriers to trade and FDI, chief among which is corruption, and recommends a two-pronged strategy for removing the worst of these barriers: one prong focused on a few highly visible policy changes that would bring results within 100 days; the other focused on setting in motion changes in Ukrainian institutions that would reduce corruption and other impediments over a longer period