2021 2(41)12

Improvement of Regulatory Policy and Investment and Financial Calculations for the Formation of  a Favorable Investment Environment in the Old Industrial  Region

Sytnyk Ye. А.
Phd in Economic Sciences, associate professor, doctoral student
ORCID https://orcid.org/0000-0001-8260-4032
Institute of Industrial Economics of the NAS of Ukraine, Kyiv

Citation Format
Sytnyk, Ye. А. (2021). Improvement of Regulatory Policy and Investment and Financial Calculations for the Formation of a Favorable Investment Environment in the Old Industrial Region. Visnyk ekonomichnoi nauky Ukrainy, 2 (41), рр. 100-105. DOI: https://doi.org/10.37405/1729-7206.2021.2(41).100-105.

Language
Ukrainian

Resume
Based on the review of program documents on the development of Donetsk and Luhansk regions, the article analyzes the shortcomings of the state strategies of economic development of Donetsk and Luhansk regions as an old-industrial region. Identified the main shortcomings of regulatory policy in terms of increasing transaction costs, and proposed modified formulas for improving the investment and financial calculations carried out during the justification of investment projects, in order to create a favorable investment environment in the old industrial region.
An assessment of changes in the investment environment and changes in the role of industry as a leading type of economic activity. A number of shortcomings in the formation of favorable investment opportunities and weaknesses in state regional development programs have been identified. The list of subjects of the special regime of investment activity in the old industrial regions is revealed. On the basis of the components of the rating of doing business according to international comparisons, negative trends in the formation of the business climate in Ukraine have been identified. The need to adjust the standard set of measures to ensure the effective implementation of TPD within Donetsk and Luhansk regions has been proved. The necessity of taking into account transaction costs when calculating well-known criteria for the feasibility of investment projects is substantiated.

Keywords
old industrial region, Strategy of economic development, State strategy of regional development, transaction costs, internal rate of return, net present value of the project, profitability index.

Referensces

  1. Yakubovskyi. M. M. (Ed.). (2005). Derzhavne rehuliuvannia ekonomiky Ukrainy: metodolohiia, napriamy, tendentsii, problemy [State regulation of the economy of Ukraine: methodology, directions, trends, problems]. Kyiv, Research Institute of the Ministry of Economy of Ukraine [in Ukrainian].
  2. Chmyr, O. S., Panchenko, V. H., Husiev, Yu. V., Pyla V. I. (2013). Vitchyzniana praktyka ta svitovyi dosvid SEZ i TPR [Domestic practice and world experience of FEZ and TPD]. Donetsk, Poster Prіnt. 252 р. [in Ukrainian].
  3. Liashenko, V. I., Petrova, I. P. (2021). BCG-analiz promyslovosti Prydniprovskoho ta Donetskoho eko nomichnykh raioniv: vyznachennia smart-priorytetiv ta stratehii rozvytku [BCG-analysis of the Industry of the Prydneprovsk and Donetsk Economic Regions: Definition of Smart Priorities and Development Strategies]. Visnyk ekonomichnoi nauky Ukrainy, 1(40), рр. 35-46. DOI: https://doi.org/10.37405/1729-7206.2021.1(40).35-46 [in Ukrainian].
  4. Proekt Zakonu Ukrainy «Pro spetsialnyi rezhym investytsiinoi diialnosti na terytoriiakh priorytetnoho rozvytku v Donetskii ta Luhanskii oblastiakh» [Draft Law of Ukraine “On the special regime of investment activity in the territories of priority development in Donetsk and Luhansk regions”] [in Ukrainian].
  5. Analitychna dopovid do shchorichnoho Poslannia prezydenta Ukrainy do Verkhovnoi rady Ukrainy. 30 rokiv peretvoren [Analytical report to the annual Address of the President of Ukraine to the Verkhovna Rada of Ukraine. 30 years of transformation]. (2021). Kyiv, National Institute for Strategic Studies. 142 р. [in Ukrainian].
  6. Stratehiia ekonomichnoho rozvytku Donetskoi ta Luhanskoi oblastei na period do 2030 r.: Rozporiadzhennia KMU vid 18.08.2021 r. # 1078-r [Strategy of economic development of Donetsk and Luhansk regions for the period up to 2030: Order of the Cabinet of Ministers of 18.08.2021 № 1078-r]. Retrieved from https://zakon.rada.gov.ua/laws/show/1078-2021-р#Text [in Ukrainian].
  7. Pro zatverdzhennia Derzhavnoi stratehii rehio nalnoho rozvytku na 2021-2027 roky: Postanova KMU vid 05.08.2020 r. № 695 [On approval of the State Strategy for Regional Development for 2021-2027: Resolution of the Cabinet of Ministers of 05.08.2020 № 695]. Retrieved from https://zakon.rada.gov.ua/laws/show/695-2020-п#Text [in Ukrainian].
  8. Pro zainiatist naselennia: Zakon Ukrainy vid 01.03.1998 r. № 803-XII [On employment: Law of Ukraine of March 1, 1998 № 803-XII]. (1991). Vidomosti Verkhovnoi Rady Ukrainy Information of the Verkhovna Rada of Ukraine, 14, Art. 170 [in Ukrainian].
  9. 9.Sytnyk, E. (2016). Semyposolshchyna, semypro kurorshchyna… Novaia Malorossyiskaia kollehyia? Ostrov, March 24. Retrieved from https://www.ostro.org/blogs/sitnik/161447/ [in Russian].
  10. Polozhennia pro kryterii vyznachennia priory tetnykh vydiv ekonomichnoi diialnosti v spetsialnykh (vilnykh) ekonomichnykh zonakh ta na terytoriiakh zi spetsialnym rezhym investytsiinoi diialnosti i poriadok yikh zastosuvannia: Nakaz Ministerstva ekonomiky vid 14.03.2000 r. № 28/51 iz zminamy ministerstva ekonomiky ta z pytan yevropeiskoi intehratsii; Nakaz vid 11.03.2003 r. № 54/198 (z 0236 – 03) [Regulations on the criteria for determining priority economic activities in special (free) economic zones and territories with special investment regime and the procedure for their application: Order of the Ministry of Economy of 14.03.2000 № 28/51 as amended by the Ministry of Economy and European Integration ; Order of March 11, 2003 № 54/198 (z 0236 – 03)]. Retrieved from https://zakon.rada.gov.ua/laws/show/z0206-00#Text [in Ukrainian].
  11. The World Bank. Doing Business. Retrieved from https://www.doingbusiness.org.

Full Text (.pdf)