The impact of military actions and energy limitations on business relocation decisions
Year: 2024
Type: article
Abstract: The article is dedicated to a detailed analysis of the impact of military actions and energy constraints on business relocation decisions amidst Russia's full-scale invasion of Ukraine. The primary focus is on key factors driving businesses to relocate, including infrastructure destruction, direct threats to personnel safety, disruptions in supply chains, and energy shortages. The war has created unprecedented challenges for Ukraine's economy, compelling businesses to seek new adaptation strategies. The article presents the results of a survey of 631 enterprises, illustrating the dependence of relocation decisions on factors such as industry specifications, geographical location, changes in key performance indicators, and resource availability. It examines the specifics of relocation processes in frontline regions, where military risks dominate, and rear areas, where economic factors are the primary motivators. The article highlights the importance of government support as a critical factor in ensuring the effectiveness of relocation processes. Government assistance programs include logistical support, funding, assistance in identifying new markets, and meeting infrastructural needs. Emphasis is placed on the necessity of international aid, particularly the involvement of donor resources and the creation of a favorable regulatory environment for relocated businesses. Special attention is given to the analysis of challenges businesses face during relocation. Specific issues include unstable energy supply, which negatively impacts production processes, and logistical barriers that complicate operations. The proposed recommendations include the development of infrastructure for relocated enterprises, simplification of administrative procedures, enhancement of financial support mechanisms, and business adaptation to new conditions. The article emphasizes the importance of developing long-term strategies aimed at maintaining economic activity, which contributes to the country's stability during the crisis. Relocation is viewed not only as a survival mechanism but also as an opportunity for business development in new economic realities.
Language: English
Topic: Economic Issues in Ukraine
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4408530425