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Munka S. Discount rate and investment process in Ukraine. Visnyk Kyi'vs'kogo nacional'nogo torgovel'no-ekonomichnogo universytetu. 2020. № 3. S. 105-112.
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postgraduate student of the
Department of Economics and International Economic Relations
Bohdan Khmelnytsky National University of Cherkasy
81, Shevchenko Boulevard, Cherkasy, 18000, Ukraine
DISCOUNT RATE AND INVESTMENT PROCESS IN UKRAINEBackground. Attraction of foreign investments to the economy remains a topical issue for Ukraine at its present stage of development. The foreign investors reluctantly invest their funds because of the difficult geopolitical situation in the country. It is, therefore, extremely important to stimulate the investment activity of domestic economic entities and business. Whereas, ensuring the economic growth and maintaining the positive dynamics of the domestic investment process in the country remains the main task of the National Bank of Ukraine.
Analysis of recent researches and publications. Despite the large number of the papers devoted to this issue, there remain many questions regarding the study of the effect of monetary policy on the investment process in Ukraine.
The aim of this paper is to study the domestic investment process in Ukraine and to determine the impact of the discount rate and credits on the economic development of the country.
Materials and methods. The paper employs methods and approaches that made it possible to carry out the study, namely analysis, synthesis, and dialectical, systemic and comparative methods.
Results. Тhe relation between the discount rate and the investment processes in Ukraine is investigated. The effect of credit interest rates on the investment activity of economic entities and businesses is analysed. The experience of investment activity stimulation by applying key factors of monetary policy in the European Union members is considered. The recommenddations aiming at stimulating the investment process in Ukraine are presented for the National Bank of Ukraine.
Conclusion. Based on the results of the conducted study, we may draw the conclusions that the investment process in Ukraine is at a very low level. Investments on account of credits amounts only to 7% of the total quantity, indicating that the National Bank does not carry out the stimulation of the investment process. Thepursuedstudy suggests that it is necessary to reduce the discount rate and the interest rate, in order to stimulate the domestic investment process in Ukraine.
Keywords: investment activity, discount rate, capital investment, monetary policy, Pearson correlation coefficient, credit interest rates.
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