Sectoral and spatial features of investment processes in a region

Abstract

Investment is an important indicator of the economic development of a region. The article examines sectoral and spatial features of investment processes in a region (on the example of Zaporizhzhya region). In particular, capital investment of enterprises in Zaporizhzhya region are analyzed by types of assets, sources of financing and types of economic activity, while development (use) of capital investment – by types of industrial activity. The paper establishes that: 1) own funds of enterprises were the main source of capital investment in Zaporizhzhya region during the period under review; 2) the highest share of capital investment in the region is financed by industrial enterprises; 3) the share of investment in professional, scientific and technical activities is reduced. The active development of the region’s industrial infrastructure is becoming a challenge for its environment today. Nevertheless, capital investment for environmental protection were found to have decreased in 2017 compared to 2016. Therefore, the strategic objective of the region today is to make effective use of its existing investment potential, in particular to improve the environment. The main factors influencing the investment processes in Zaporizhzhya region were identified: a) positive factors, in particular: availability of natural resources and own energy resources; higher level of profitability of enterprises in the region than the average in Ukraine; ongoing processes of deregulation, decentralization, reform of the territorial organization of power in Ukraine; b) factors of a negative nature, in particular: territorial (spatial) imbalance of business development and institutional infrastructure of business support; small capital investment for environmental protection; aggravation of the military conflict in Eastern Ukraine, etc.