THE INFLUX OF DIRECT CAPITAL AND THE POLITICO-ECONOMIC SYSTEM IN LESS DEVELOPED COUNTRIES (THE CASE OF UKRAINE)

The paper presents the specific character of direct capital transfer to Ukraine, a country which has not undergone systemic transformation. It shows the relations between the features of the politico-economic system of Ukraine and the possibility of intensification of its economic relations with foreign countries. In the course of the analysis of the case of Ukraine, the authors present the characteristics of the economic relations between Poland and Ukraine and compare the economic development of Ukraine with that of the Baltic States. Moreover, the paper provides an analysis of causes and effects of capital investments in less developed countries, as well as of the barriers to direct capital investments, with particular reference to an unsatisfactory level of legal protection of foreign investments.