№ 6/2019

Fìnansi Ukr. 2019 (6): 7–22https://doi.org/10.33763/finukr2019.06.007

FINANCES OF THE INSTITUTIONAL SECTORS

DANYLENKO Anatolij ¹

¹Institute for Economics and Forecasting of NAS of Ukraine
OrcID ID : https://orcid.org/0000-0002-9753-5831

Investment projects and their role upon of industrial development of Ukraine

The development of Ukrainian economy under market conditions with more private enterprises was not efficient in terms of employing all available resources for modernization of fixed assets and export production. The economy needed state involvement in promotion of real sector development. This important problem was discussed by numerous economists, both from academia and practitioners. Their major suggestions focused on revival of industrial structure of the economy. However, they mostly did not consider the availability of necessary funds for such revival and ignored the issue of demand for items produced. Attempts to resolve the issue by Ukrainian parliament and Government through legal amendments or changes in selection of investment projects were not successful as they overlooked the availability of funding and underlying regulations did not take objectives of Ukraine’s economic development as project eligibility criterion. In view of investors’ interests, agriculture and food processing industry advance most prominently, as visible at privatized enterprises and companies built since the dawn of Ukraine’s independence. This situation gave rise to question underlying the research and suggestions based on its outcomes. Specifics of investment projects were profoundly studied by the National Institute for Strategic Studies and by the Institute of Economics and Forecasting of the National Academy of Science of Ukraine. The research by those institutions offered generalizations on the essence and suggestions on prospects of application of investment projects, both within economic literature and in reports to the highest authorities. Key recommendations substantiated in the article are concerning the substance of state investment projects, ways of their employment under market economy, possible transformations at authorities aimed at wider introduction of investment project approach, legal amendments on implementation of the investment projects, objectives and prospects of long-term economic development, and the role of Government in implementation of promising investment projects, prospects for industry-wide introduction of import-substitution works, etc. Development and introduction of outcomes of such research in promoting economic role of the state will facilitate the growth of Ukrainian economy.

Keywords:investment project, national projects, export, import substitution, prospects for industries

JEL: E20, E22, R53

Danylenko A. . Investment projects and their role upon of industrial development of Ukraine / A. . Danylenko // Фінанси України. - 2019. - № 6. - C. 7-22.

Article original in Ukrainian (pp. 7 - 22)

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