THE INFLUENCE OF CAPITAL INVESTMENT VOLUMES ON GROSS REGIONAL PRODUCT GROWTH IN THE REGIONS OF UKRAINE

Abstract

The article examines the influence of the dynamics of capital investment growth on the growth of gross regional product in the regions of Ukraine. To do this, an analysis of the relationship between capital investment and gross regional product (GRP) using a regression function. Based on regression analysis, the values of investment multipliers and accelerators were calculated, which showed a high closeness of the interdependence between the volume of gross regional product and fixed capital investment. The return on capital investment in the economy of the regions with the growth of gross regional product is also determined, the reverse effect of investment growth together with the growth of gross regional product. In the constructed models of multipliers and accelerators of regions rather considerable sums of the remains which have led to necessity of introduction in construction of models in addition of such important factor of production as work are revealed. Construction of a two-factor production function with factors of capital investment and labor (expressed in wages) made it possible to determine the productivity of production resources of regions and indicators of elasticity of the influence of these factors on the formation of gross regional product of regions. The study revealed a close relationship between capital investment and gross regional product, as evidenced by the values of the coefficients of determination and correlation. This makes it possible to determine the required level of investment in fixed capital at a given volume of gross regional product and is of practical interest in forecasting economic growth in the regions of the country.