The concept of state financial and credit policy forming in investment sphere

Economic Annals-ХХI: Volume 147, Issue 1-2(1), Pages: 70-73

Citation information:
Mayorova, T. (2015). The concept of state financial and credit policy forming in investment sphere. Economic Annals-XXI, 1-2(1), 70-73. https://ea21journal.world/index.php/ea-v147-17/

Тetiana Mayorova
PhD (Economics),
Associate Professor,
Kyiv National Economic University named after Vadym Hetman
54/1 Peremohy Ave, Kyiv, 03680, Ukraine
mayorova_kneu@ukr.net

The concept of state financial and credit policy forming in investment sphere

Abstract. Introduction. The unfavourable macroeconomic situation in Ukraine that has resulted in a decline of investment activity causes an immediate need for establishing an efficient state financial & credit policy the impact vectors of which should be directed to the expansion of business entities’ financial potential for the purpose of making capital investment in modernization of the economy that has been also destroyed by events in the east of the country. Purpose of the article is at grounding the conceptual principles of forming the integrated state financial & credit policy in the investment sphere capable of stimulating investment activities of economic entities under crisis conditions. Methods. The research is based on methodology of complex systems and dialectics of the modern world integrity and contradictions. General scientific and specific cognition methods have been used. Among them are: systematic approach, dialectical method, scientific methods of abstraction, analysis and synthesis, logical method, qualitative and quantitative analysis methods.

Results. The real sector of Ukrainian economy will gain the greatest effect only in case if the state builds an integrated coordinated financial & credit policy able to stimulate the investment activities of all economic entities in different sectors, industries and regions. The author proposes to approve the Concept of state financial & credit policy in the investment sphere which is methodologically based on the synergy of relationship and contradictions between finance and investment. The Concept’s mission is to form the financial & credit mechanism able to provide the growth of capital investments in the real economic sector, and it’s goal consists in creating favorable conditions for financial and credit support of economic entities’ investment activity at the micro- and macrolevel as it is a prerequisite for raising competitiveness of Ukraine’ economy and its integration into the global economic space.

Conclusion. In order to improve financial and credit support of economic entities’ investment activity it has been proposed to approve the Concept of forming an integrated state financial & credit policy in the investment sphere which should be aimed at providing the growth of capital investments in the real economic sector. The expected results of such a policy should be: raise of the volume and efficiency of budget investment; expansion of financial potential for enterprises’ investment activity; stimulation of institutional investors’ activity, as well as expansion of financial institutions’ financial and credit potential.

Keywords: Financing; Financial & Credit Policy; Investment Process; Capital Investment; Financial & Credit Leverage; Synergetic

JEL Classіfіcatіon: E22; E52; E62

References

1. Sargent, T. (1999). A Primer on Monetary and Fiscal Policy. Journal of Banking and Finance, 23(8), 1463-82.
2. Sims, Ch. A. (2011). Statistical Modeling of Monetary Policy and its Effects. Nobel lecture.
   Retrieved from http://www.nobelprize.org/nobel_prizes/economic-sciences/laureates/2011/sims-lecture.html
3. DeLisle W. (2000). Monetary and Fiscal Coordination in Small Open Economies. IMF Working Paper WP00/56.
4. Dahan, M. (1998). The Fiscal Effects of Monetary Policy. The Fiscal Effects of Monetary Policy. USA: International Monetary Fund.
   doi: http://dx.doi.org/10.5089/9781451962185.001
5. Laurens, B., & de la Piedra, E. G. (1998). Coordination of Monetary and Fiscal Policies. IMF Working Paper WP98/25.
6. Kireyev, O. I., Shapovalova, M. M. et al. (2005). In V. I. Mischenko (Ed.). Improving coordination of monetary and fiscal policy: Information-analytical materials. Kyiv: Center Research NBU (in Ukr.).
7. Andruschak, Ye. M., & Khar, V. S. (2010). Organizational and economic aspects of coordination of monetary and fiscal policy in Ukraine. Ekonomika i biznes (Economy and Business), 2, 55-61 (in Ukr.).
8. Zymovets, V. V. (2010). State financial policies of economic development. Kyiv: National Academy of Sciences of Ukraine, Institute of Economics and Forecasting (in Ukr.).
9. Lahutin, V. D. (2007). Fiscal and monetary policy: coordination in economy. Kyiv: KNTEU (in Ukr.)
10. The State Statistics Service of Ukraine (2015). Basic indicators of social and economic development of Ukraine.
    Retrieved from http://ukrstat.gov.ua (in Ukr.)
11. The World Bank (2015). Ukraine Economic Review.
    Retrieved from http://www.worldbank.org/content/dam/Worldbank/document/eca/ukraine/
    World%20Bank%20Macro%20Update_October%202014_UKR_FIN.pdf (in Ukr.)
12. National Bank of Ukraine (2015). Statistical information.
    Retrieved from http://www.bank.gov.ua/control/uk/index (in Ukr.)
13. The Verkhovna Rada of Ukraine (2015). On the State Budget of Ukraine for 2015 (Law of Ukraine).
    Retrieved from http://zakon4.rada.gov.ua/laws/show/80-19/paran211#n211
14. Mayorovа, T. V. (2014). Synergetic approach in shaping the modern paradigm of financial and credit mechanism enhance the investment process. Economic Annals-XXI, 3-4(1), 66-69.
    Retrieved from https://ea21journal.world/index.php/ea-v139-17/ (in Ukr.)

Received 02.12.2014