Postgraduate Student of the Economic Theory and Competition Policy Department
Kyiv National University of Trade and Economics
STATE STIMULATION OF INVESTMENT PROCESS
Background. On the initial stages of the development of innovation and investment systems in Ukraine public authorities developed a system of the normative legal documents, on the basis of which the proper executive branches began to manage the investment process. However because of unstable socio-political and macroeconomic situation in the country, errors and miscalculations during the implementation of public investment policy the efficiency of the investment process became unattainable. This problem need to be solved by the subsequent scientific researches to improve methods of the stimulation of investment process.
The aim of the article is to investigate the basic directions of the state stimulation of investment process, their interconnection and influence on each other.
Materials and methods. The modeling method lies in theoretical aspects to identify the interconnection of the separate directions of the state stimulation of investment process. The interdependence of basic efficiency indexes of the state stimulation of investment process in Ukraine was investigated by using the method of comparable analysis.
Results. The state stimulation of investment process is a complex of measures, directed at forming the favorable conditions to perform the investment activities by both the recipients of investments and investors, attract the potential investors to the implementation of investment projects, directed at strengthening the competitiveness of separate enterprises, industries and regions and develop the whole economy in the country. On the efficiency of the implementation of depreciation policy depends an investment modernization of equipment on the basis of recreation of non-current assets, which depends on the bank’s credit-granting to industrial enterprises. Here the considerable role plays the receipt of foreign direct investments both to banking sector and industrial enterprises. All of this will be instrumental in growth of population employment and tax revenues to budget, on the basis of which the state will be able to fill up a budget and have a possibility to carry out the preferential tax treatment.
During all analysed period public investment policy for all interconnected directions of the state stimulation of investment process did not provide the sufficiency of stimulant influence. The orientation of investment process to attract foreign investors having the insufficient efficiency and high risks, unbalanced finance and credit system of the country reduces the results (effects) of state stimulation of investment process in Ukraine. The existent problems retard the formation of the innovation initiative of subjects of menage and processes of the innovation update of economic potential of the country.
Conclusion. Analysis of state stimulation of investment process in Ukraine showed that all its directions and tools are interconnected. In the analysed period the investment policy of the state in all areas did not provide sufficient incentive effect. It is needed to investigate the questions of the normative legal base of menage, approval of stimulant methods and preferences for investors and, above all things, domestic commodity producers, and also attraction of foreign investments to introduction of progressive technologies and front-rank experience of acceptance of administrative decisions according to the stimulation of investment process on the principles of the state strategic planning.
Keywords: investment process, state stimulation of investment process, investment policy, budgetary and tax policy, depreciation policy.
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