Konotop G. Institutional mechanisms for external financing in emerging markets economies.

The theoretical approaches to the problems of emerging market economies’ external financing as well as the methodological principles of institutional mechanisms formation to attract foreign capital are explored in the thesis. The mechanisms for ensuring the contracts’ performance, political and economic stability, civil and political rights, corruption are found among the most used institutional factors, attracting foreign investment, in most empirical papers. The dynamics and the structure of the inward capital flows to emerging market economies are analyzed. The changes of institutional mechanisms components to attract foreign capital in emerging Asia, Latin America and Europe are revealed. It was proved that the investment policy reforms, the formal rules, are the most important part of the institutional change. The role of the investment agencies (national and regional) in encouraging the foreign investment to emerging Eastern Europe economies are studied. The analysis of the relationship between the quality of the institutional environment and the inflow of foreign capital into the emerging market economies, using multivariate regression analysis, showed the high significance of manetary freedom, trade openness and liberal taxation. The areas of institutional mechanisms diversification for external financing of the economy of Ukraine are highlighted.