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

Abstract

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.