Research of investment capacity of Carpathian region (in institutional sector of households)

Abstract

The paper outlines the investment capacity of a region across its components. The methods to evaluate investment capacity of a region are analyzed. Special attention is paid to regions’ rankings and estimation of the regions’ business-climate. Domestic and foreign methods of investment capacity estimation are structured with division into the methods of expert estimation, methods based on statistical information, combined methods (experts-statistics). Methods of foreign scientists S. H. Syerikov and O. A. Tsepelyeva are examined. The methodics was tested across investment capacity of households of four oblasts in Carpathian region for 2010-2017 and the results are presented in the paper. The gap between the revenues and expenses of households across the oblasts of Carpathian region is presented graphically. The dynamics of households’ financial assets growth in four oblasts is analyzed. Investment capacity of households across oblasts and their capacity to participate in investment projects is calculated. The paper reveals that households haven’t been able to invest in the economy of the region for three recent years, because their expenditures exceed the profits. Possible reasons of current condition of households’ investment capacity are outlined. Conclusions regarding the illegalization of income of substantial share of Carpathian region’s population is made. The most relevant ways to receive illegal income used by Ukrainian population nowadays are explained. The fact that money supply from abroad and received illegal income form the shadow sector of Ukrainian economy is emphasized.