Global trends in state investment policy and practice of their implementation in Ukraine
Economic Annals-ХХI: Volume 156, Issue 1-2, Pages: 26-30
Citation information:
Zatonatska, T. (2016). Global trends in state investment policy and practice of their implementation in Ukraine. Economic Annals-XXI, 156(1-2), 26-30. doi: https://doi.org/10.21003/ea.V156-0006
Tetiana Zatonatska
D.Sc. (Economics),
Associate Professor,
Taras Shevchenko National University of Kyiv
90a Vasylkivska Str., Kyiv, 03022, Ukraine
tzatonat@ukr.net
Global trends in state investment policy and practice of their implementation in Ukraine
Abstract. Introduction. Nowadays Ukraine is on its way to European integration that requires urgent global scale approaches and priorities for the development of public investment policy and public investment spending. During the formation of the state investment policy the basic aspects of the main goals and objectives of the investment policy of the new generation, recent trends in international investment policy and the needs of the global economy should be taken into account. The article highlights trends in changes in the basic vectors of international investment policy compared with the institutional changes in the field of public investment policy in Ukraine.
Purpose. The article aims to identify priority areas of the state investment policy in Ukraine in order to improve the investment climate and economic development of the state.
Methods. The abstract logical method is used in the determination of the structure and scheme of the study. The systemic approach made it possible to examine the tools of fiscal management of the national economy comprehensively and thoroughly and to identify the most important links between investment policy of Ukraine and trends in international investment policy. Methods of statistical analysis were also used during the study.
Results. The distribution of total public expenditures on economic activity in Ukraine during the years 2012-2016 as well as the areas of international investment policy in the period of 2012-2015 was analysed. An analysis of the changes in the priorities of public investment policy in Ukraine was conducted. Recommendations for improvements in the investment climate by reducing corrupt schemes through the introduction of electronic services, adaptation of tax instruments and tax administration under European standards, establishing clear state priorities in the public investment policy, identification of priority sectors and directing public investment in competitive industrial sectors of national economy were provided.
Conclusions. A large number of priority areas and the lack of a clear strategy of the development of sectors of economy remain the negative factor of inefficient state investment policy. A new distribution of state investments in the implementation of public investment projects developed and enshrined at the legislative level is a transparent mechanism according to which only those projects that are most important to the state and have clear socio-economic assessment will be selected. This mechanism will ensure the completion of the projects that have already begun, take into account the needs of society during the selection of new projects and ensure the competitiveness of various sectors of the national economy.
Keywords: International Investment Policy; Priority Directions of Investment Policy; Economic Sectors; Public Investments
JEL Classіfіcatіon: H50; H54; H72
DOI: https://doi.org/10.21003/ea.V156-0006
References
- Sineviciene, L., & Vasiliauskaite, A. (2011). Fiscal policy interaction with private investment: The case of the baltic states. Engineering Economics, 23(3), 233-241.
- Yu, F., Guo, Y., Le-Nguyen, K., Barnes, S. J., & Zhang, W. (2016). The impact of government subsidies and enterprises’ R&D investment: A panel data study from renewable energy in China. Energy Policy, 89, 106-113.
- Major, K. & Sziagyi, K. (2009). Government investment in a small open economy. Acta Oeconomica, 59(2), 119-145.
- Long, C., Yang, J. & Zhang, J. (2015). Іnstitutional impact of foreign direct investment in China. World Development, 66, 31-48.
- Verkhovna Rada of Ukraine (2015). On Budgetary Policy for 2016. Draft law.
Retrieved from http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=54761 (in Ukr.) - The Verkhovna Rada of Ukraine (2015). On the State Budget of Ukraine for 2016 (Law of Ukraine).
Retrieved from http://zakon4.rada.gov.ua/laws/show/928-19 (in Ukr.) - Cabinet of Ministers of Ukraine (2015). On public investment management (Resolution of the Cabinet of Ministers of Ukraine).
Retrieved from http://zakon4.rada.gov.ua/laws/show/571-2015-%D0%BF (in Ukr.) - The Ministry of Economic Development and Trade of Ukraine (2015). The Inter-ministerial Commission selected public investment projects to be financed from the State budget for the 2016-2018 period.
Retrieved from http://www.me.gov.ua/News/Print?lang=uk-UA&id=9d558a30-1158-47e6-a55a-35470f300891 (in Ukr.) - United Nations Conference on Trade and Development (UNCTAD) (2012). World Investment Report 2012: Towards a New Generation of Investment Policies.
Retrieved from http://www.unctad-docs.org/files/UNCTAD-WIR2012-Overview-ru.pdf - United Nations Conference on Trade and Development (UNCTAD) (2014). World Investment Report 2014: Investing in the SDGs: An Action Plan.
Retrieved from http://unctad.org/en/PublicationsLibrary/wir2014_overview_ru.pdf - United Nations Conference on Trade and Development (UNCTAD) (2015). World investment report 2015: Reforming international investment governance.
Retrieved from http://unctad.org/en/PublicationsLibrary/wir2015_en.pdf
Received 9.02.2016