Domestic Financial Resources Research Articles

Inclusive finance and sustainability: The dynamic spillover effects of uncertainties on access to credit

A firm's access to domestic credit is crucial in inclusive finance for businesses, particularly small and medium-sized enterprises, to invest and grow. Sustainable and inclusive economic growth requires a healthy private sector with access to financial resources. This paper explores how uncertainty from major economies (measured by Uncertainty Spillover indices) can limit domestic credit availability in the private sector. Analysing a panel dataset encompassing 100 developed and developing economies from 1996 to 2019, the research reveals that uncertainties stemming from China and the United States significantly reduce the availability of domestic financial resources. Uncertainties surrounding other G7 economies (Canada, France, Germany, Italy, Japan, and the United Kingdom) also exhibit a negative association; however, their effects are statistically insignificant. The robustness of these findings is confirmed across various empirical models and income classifications. Possible implications for inclusive finance and sustainable economic growth are also discussed.

FDI, institutional quality and gender employment in Sub-Saharan Africa

With the widening saving-investment gap and the limited domestic financial resources to drive development imperatives in Sub-Saharan Africa (SSA), foreign direct investment (FDI) is considered a viable and sustainably promising option for boosting employment generation and closing gender gaps in employment. This paper provides critical insights into the gender and age-based employment effect of FDI in SSA and the role of institutional quality in shaping the relationship. The two-step generalized method of moments modelling framework was adopted to analyse relevant data of 29 SSA countries over the 2000-2021 period. The results revealed that FDI has a significant employment-enhancing effect irrespective of gender and age considerations. We also find that institutional quality amplifies this effect. Efforts should, therefore, be concentrated on improving institutional quality, the success of which will appeal to foreign investors and attract more foreign investments.

Исследование трансформации рынка частных инвестиций в России на современном этапе

The need to ensure the stable development of the Russian economy and financial market in the current geopolitical conditions presupposes the use of domestic financial resources as the main source of investment. Of particular scientific and practical importance is the identification and research of key trends and growth drivers in the development of the Russian private investment market, the main participants of which are resident individuals. The analysis of the features and changes in the functioning of the domestic stock market at the present stage allowed us to substantiate the conclusion about the strengthening of the role of the retail investor, including due to the universal digitalization of society and increasing the availability of basic exchange instruments for the mass consumer, whose investment behavior is now becoming decisive in the transformation of the Russian stock system as the largest element of the financial market in the country. A study of the quantitative and qualitative characteristics of the activities of resident individuals on the stock exchange in the segment of trust management and brokerage services, which allowed to assess the volume of their investment, investment activity, share of participation in auctions, including in certain market segments, industry rotation of investments, investment horizon, as well as to identify the significant changes in the retail investor's investment preferences, which affected the structure and quality of his portfolio. The factors and areas of activity that contribute to the solution of the task identified at the state level as a priority to stimulate the process of transforming the savings of the population into long-term investments are identified.

An Analysis of Approved Foreign Direct Investment in Hydropower of Nepal

Hydropower is the major economic sector of Nepal. This paper analyzed approved FDI in hydropower sector based on secondary data 2004-2022. Descriptive research design has been used. The quantitative data presented in tabular form. Bar-diagram and flow chart used as required in analysis. Domestic financial resources are not sufficient to generate electricity. Due to this government of Nepal realized FDI in this sector. The government promotes and facilitates FDI by introducing appropriate policies, legal and institutional arrangements to create an enabling environment for domestic as well as foreign investors. Foreign investors are playing important role for hydroelectricity generation. Upper Bhotekoshi and Khimti project are developed By FDI. This study shows that the status of approved FDI on hydropower sector is increasing since 2004 to 2022 (except 2004-05, 2006-07, 2016-17, 2018-19 and 2021-22) with respect to total approved FDI in Nepal. It clearly state that foreign investors are interested to invest in this sector but there are some obstacle for them. If the government provides more secure environment to foreign investors they will be highly encouraged to invest in this sector.

THE ROLE OF GOVERNMENT IN ENTREPRENEURIAL FINANCE: VENTURE CAPITAL INVESTING AND INNOVATION

The use of venture capital has been discussed extensively in recent years as an alternative source of funding for start-ups to meet their financial needs. The contribution of venture capitalists to the overall business development of companies has been highlighted in this debate. This paper presents a research framework to identify the innovation indicators in terms of the role of government in their creation that influence venture capital investment. The relationship between innovation as measured by ease of business creation, ease of resolving insolvency, current expenditure on education, ICT (information and communication technology) use, ease of getting credit, domestic financial resources to private sector, protection of minority investors, knowledge-intensive employment, exports of creative goods, domestic patent applications and venture capital investment is examined for OECD countries over the ten-year period between 2012 and 2021. The results show that the main determinants of innovation that affect venture capital investment are ease of insolvency procedures, ease of access to credit, current expenditure on education, use of ICT, knowledge-intensive employment, exports of creative goods and GDP per capita.

Toward political economy of sustainable financing for immunization in the World Health Organization African Region through a systems thinking lens

There is an urgent need for countries in Africa to allocate more domestic financial resources to immunization so that national immunization programmes can attain self-reliance in line with World Health Organization's Immunization Agenda 2030. However, resource allocation is fundamentally a political process because other competing needs exist. Political economy analysis (PEA) can guide policy influencers in their engagement with decision makers to tilt their interest in support of sustainable immunization financing. PEA can provide a deeper understanding of the potential constraints and facilitators of a policy direction to expand the fiscal space for immunization using domestic resources within the context of a country's socioeconomic and political realities. To further advance the usefulness of PEA for decision making, a systems thinking lens should be applied to account for the inherent complexity of the social systems involved in resource allocation and implementation. Several methods and tools of systems thinking already exist and can be employed. Causal loop diagrams, when incorporated in a PEA of sustainable financing for immunization can aid the identification of feedback loops which can be used as leverage points for intervention.

Deficit Financing and Economic Growth: Empirical Evidence from Nigeria

The impact of deficit financing on economic growth has long been recognized in the extant literature given that this type of financing is germane to accelerated and sustainable economic growth. Yet, Nigeria did not seem to have utilized deficit financing proceeds to invest in those related infrastructural facilities that would generate income and augment domestic savings, thereby helping to make and sell quality products and services that are internationally competitive, and ultimately stimulate economic growth. Rather, the seemingly weak governance in the country engaged in massive misappropriation of public funds and outright corruption thereby exacerbating unemployment, insecurity, and widespread poverty both in the urban and rural areas of the country. The main aim of the study therefore was to investigate empirically the impact of deficit financing on economic growth in Nigeria for the period 1981 to 2019. Secondary data for the study were sourced from the Central Bank of Nigeria and the World Bank Global Development Index. The fully modified ordinary least squares methodology of the econometrics was employed to analyze the data of the study. The major findings of the study showed that the federal government domestic debt variable, the federal government budget deficit variable, the foreign exchange reserves variable, and the broad money supply variable exerted positive impacts on economic growth, while the external debt variable exerted a negative and insignificant impact on economic growth in Nigeria. The study therefore concluded that public borrowing in Nigeria can only induce rapid and sustainable economic growth only and if only borrowed funds are massively invested in related infrastructural facilities that would generate revenue which would augment domestic financial resources. Accordingly, the study recommended that the federal government of Nigeria should carefully study the state of its economy to enable it invest in those infrastructural facilities that are thought germane to the achievement of sustainable economic growth.

Put on the light! Foreign direct investment, governance and access to electricity

Despite efforts and commitments to achieve universal coverage of electricity, overall access in Africa is below expectation, making the attainment of the United Nations' Sustainable Energy for All Initiative almost a mirage for this region. The inability to mobilize adequate domestic financial resources and a seeming lack of political will (reflected in governance) have been highlighted as two of the major bottlenecks in the development of electricity infrastructure in African regio. Regarding inadequate financial resources, we argue that inflows of foreign direct investment (FDI) and the influx of multinational enterprises can help a great deal. To this end, we investigate the impact of FDI on access to electricity and further examine whether this impact is contingent on the governance architecture. Using a sample of 36 African countries, and the instrumental variable (IV) approach to the generalized method of moments (GMM), our results suggest that, for the most part, the direct impacts of FDI and governance on access to electricity are positive. The role of governance in the FDI impact on electricity was established.

Assessing the cost-effectiveness of contraceptive methods from a health provider perspective: case study of Kiambu County Hospital, Kenya

BackgroundKenya’s contraceptive prevalence rate at 53% is low, with wide disparity among the 47 counties that make up the country (2–76%). Significant financial investment is required to maintain this level of contraceptive use and increase it to levels seen in more developed countries. This is in the context of a growing population, declining donor funding, limited fiscal space and competing health challenges. Studies have shown that long-term contraceptive methods are more cost-effective than short-term methods. However, it is unclear if this applies in Sub-Saharan Africa; with limited financial resources, lower social economic status among users, and publicly managed commodity supply chains, in vertical programs largely dependent on donor funding. This study assessed the cost-effectiveness of contraceptive methods used in Kenya.MethodsA cross-sectional study was undertaken in a county referral hospital in mid-2018. Purposive sampling of 5 family planning clinic providers and systematic sampling of 15 service delivery sessions per method was done. Questionnaire aided interviews were done to determine inputs required to provide services and direct observation to measure time taken to provide each method. Cost per method was determined using activity based costing, effectiveness via couple year protection conversion factors, and cost-effectiveness was expressed as cost per couple year protection.ResultsThe intra-uterine copper device was most cost-effective at 4.87 US dollars per couple year protection followed by the 2-Rod Implant at 6.36, the 1-Rod Implant at 9.50, DMPA at 23.68, while the combined oral contraceptive pills were least cost-effective at 38.60 US dollars per couple year protection. Long-term methods attracted a higher initial cost of service delivery when compared to short-term methods.ConclusionLong-term contraceptive methods are more cost-effective. As such, investing in long-term contraceptives would save costs despite higher initial cost of service delivery. It is recommended, therefore, that Sub-Saharan Africa countries allocate more domestic financial resources towards availability of contraceptive services, preferably with multi-year planning and budget commitment. The resources should be invested in a wide range of interventions shown to increase uptake of long-term methods, including reduction of cost barriers for the younger population, thereby increasing contraceptive prevalence rates.

WORLD MARKET OF PROJECT FINANCING: INDUSTRIAL STRUCTURE

Background. The domestic economy remains systemically underfunded due to lack of domestic financial resources and low investment attractiveness for foreign investors. The deepening of this problem is also caused by the situation with COVID-19, which has led to a decrease in global cash flows in the world. Obtaining cross-border investment flows in various sectors of the economy is associated with project financing, the development of co-financing and the use of PPPs. There is a question of research of modern tendencies of development of project financing which change according to present challenges, for the purpose of implementation of experience of foreign countries in the Ukrainian practice of development of investment activity. Analysis of recent research and publications has shown that in the context of abrupt changes, challenges and crises, leading to reduction oflong-term investments, the issue of using large-scale project financing to guarantee future profits (project financing) to develop priority sectors of the economy and individual regions of the country remains relevant. The aim of the work is to study the global industry trends in the development of project financing, taking into account the new socio-economic realities and justification of the feasibility of using world experience in Ukrainian practice. Materials and methods. The research methodology is based on a system of general scientific and special methods, in particular: abstract-logical, analysis, synthesis, comparison, grouping, generalization, graphical method, statistical methods for assessing the dynamics and structure. Legislative documents, scientific works of domestic and foreign scientists, statistical information became the information base of this research. Results. The modern tendencies of the global market of project financing, dynamics of its volumes and branch structure are investigated. The directions of project financing by the main sources are analyzed: bank loans and bond loans. The expediency of using international experience in the implementation of large-scale investment projects in various sectors of the economy of Ukraine using schemes and methods of project financing is substantiated. Conclusion. The introduction of experience in the implementation of investment projects using project financing schemes in Ukraine should contribute to the formation of demand for long-term investments, including foreign ones. This practice of project implementation allows to modernize the economy, increase the potential of regional development and integrate into global value chains.

ОЦІНКА ІНВЕСТИЦІЙНОЇ ПРИВАБЛИВОСТІ УКРАЇНИ

Анотація. Інвестиції насьогодні є вагомою основою розвитку багатьох рівнів економічної системи та можуть бути розглянутими як драйвер активізації економічного розвитку країни. Вони є необхідними для нарощування темпів виробництва, модернізації економічного комплексу, диверсифікації економіки. Оцінка інвестиційної привабливості розглядається як важливий засобів оптимального досягнення цілей інвестування, який забезпечує виконання функції механізму управління інвестиціями. Інвестиційна привабливість окремої країни, регіону, галузі чи підприємства є вагомим орієнтиром для інвестора при прийнятті рішення стосовно вкладення капіталу. В сучасних умовах глобалізації економіки при оцінці інвестиційної привабливості країни все більшої актуальності набуває імідж країни на міжнародній арені, її позиція у провідних рейтингових ранжуваннях, досвід інших інвесторів ведення діяльності у країні. В статті розглянуто сутність поняття «інвестиційна привабливість» та запропоновано власне авторське визначення цього поняття. Охарактеризувати методичні підходи до оцінки інвестиційної привабливості на різних рівнях економічної ієрархії. Вивчено питання взаємозв’язку між дефініціями інвестиційної привабливості, клімату, потенціалу, ризику та активності. Проведено макроекономічний аналіз динаміки позицій України в призмі міжнародних рейтингів та індексів. Представлено організації та рейтинги, які оцінюють інвестиційну привабливість держави. Обґрунтовано методики рейтингів інвестиційної привабливості країн. Здійснено комплексну оцінку інвестиційної привабливості України протягом останніх років. Розглянуто фактори, які призводять до змін трансформаційних процесів у державі, загостренню загальноекономічної ситуації, дефіциту внутрішніх фінансових ресурсів та проблемі зі залученням іноземних інвестицій, що в свою чергу перешкоджають підвищенню інвестиційної привабливості України. Надано рекомендації щодо покращення інвестиційної привабливості України в сучасних умовах. Ключові слова: інвестиції, інвестиційна привабливість, міжнародні рейтинги та індекси, інвестиційна активність, інвестиційний клімат, інвестиційний потенціал, інвестиційний ризик. Формул: 0; рис.: 1; табл.: 2; бібл.:31.

The Russian banking sector: new development trends

The article examines the key trends in the banking system of the Russian Federation in 2017-2019. The efficiency of the use of domestic financial resources and the intensity of accumulation processes largely determine the level of socio-economic development of the state, which confirms the key role of banks and the banking sector in the development of the national economy. Although the Russian banking sector is experiencing rapid growth, it still does not reach a sufficient level of development of the competitive environment and market discipline, which negatively affects the quality of banking services. The aim of the study is a comprehensive analysis of current trends in the development of the banking sector of the Russian Federation over the past three years. During the study, comparison methods and economic and statistical methods were used. The tasks of the work are to identify existing problems in the Russian banking sector and its prospects. The result of this work was a study of key indicators of the banking system of the Russian Federation in 2017-2019. This study analyzed the dynamics of the number of credit institutions, financial results of the banking sector, as well as the volume of credits and deposits of legal entities and individuals. The main conclusion of the work was that despite the active development of the Russian banking system in recent years, there are still problems that need to be solved. Global processes and challenges, such as the coronavirus pandemic in 2020 and related restrictions, have a negative impact on the financial sector both in Russia and globally. This also includes foreign sanctions. In these circumstances, the subsequent development of the domestic banking sector will largely depend on the development of the situation with coronavirus and Russia’s diplomatic relations.

ІНСТРУМЕНТИ ФІНАНСУВАННЯ РОЗВИТКУ ТЕРИТОРІЙ

The importance of developing international and transnational cooperation necessitates a high level of economic development of the region. The smart regional development strategy is introduced by Ukraine in the framework of the Association Agreement with the EU. This strategy aims to focus its efforts on the usage of creative resources, ensures interaction between science, business, state and public. Also, it assures maximum harnessing of the region's internal resources. Ukrainian regions determined the strategic directions of smart specialization, which is reflected in the "Regional Development Strategy 2021–2027". Ensuring adequate funding is one of the main priority conditions for innovation. European experience demonstrates that innovative forms of project financing are beginning to create a significant competition with traditional forms of fundraising. That is why Ukraine should provide an enabling environment and develop new forms of financing its innovative activity. This article is devoted to the problems of search and effective involvement of domestic financial resources in the internal development processes of the region. Risk-related projects are funded through instruments such as investment funds, business angels, venture capital, and crowdfunding. Although these tools are used in Ukraine, they have not been properly disseminated in the process of financing innovations. There are measures that would help attract financial resources to replenish innovation capital. It includes development of the securities market of innovative enterprises; improving tax regimes and regulating the activities of innovative enterprises; creation of innovative credit lines; establishing mechanisms for guaranteeing and insuring innovative projects; development of non-banking mechanisms of indirect investment; development of leasing and property lease; providing mechanisms for mutual lending and cooperation of innovative enterprises. Along with the analysis of the main reasons for ineffective usage of the above-mentioned; tools, it is proposed to consider new methods of financing innovations such as financial clusters.

Study the Impact of use of ICT on Organization Performance in Omani SMEs

Traditionally SMEs have resource constraints in the form of information, finance and reach in the market, ICT is vital to promote strategy, performance, and growth. Moreover, Oman boasts of very high mobile phone penetration and highly connected youth, the impact of ICT in the performance of SMEs becomes all the more pronounced. This paper focuses to study the impact of the use of ICT on the organization performance in small and medium enterprises in Oman. In a knowledge-based economy, SMEs face both opportunities and challenges due to the development of ICTs. Within the country, SMEs are of huge economic and social importance and play an important role in mobilizing domestic financial resources and competencies, as well as increasing savings and channeling them into investment areas. Here comes the role of technology, where the development and innovation in ICT increase the productivity of the individual and benefit from the knowledge, science, and technology. The significance of the findings of this study is valuable to all the stakeholders – owners/managers, sponsors, entrepreneurs, financial institutions and government. The outcome of the study point towards the direction needed to make informed decisions and formulate policies about ICT investments in the country.

Prediction of out-of-pocket health expenditures in Rwanda using machine learning techniques.

Introductionin Rwanda, the estimated out-of-pocket health expenditure has been increased from 24.46% in 2000 to 26% in 2015. Despite the existence of guideline in estimation of out-of-pocket health expenditures provided by WHO (2018), the estimation of out-of-pocket health expenditure still have difficulties in many countries including Rwanda.Methodsthe purpose of this paper was to figure out the best model which predicts the out-of-pocket health expenditures in Rwanda during the process of considering various techniques of machine learning by using the Rwanda Integrated Living Conditions Surveys (EICV5) of 14580 households (2018).Resultsour findings presented the model which predict the out-of-pocket health expenditures with higher accuracy and was found as treenet model. Furthermore, machine learning techniques were used to judge which predictor variable was important in our prediction process and comparison of the performance of the algorithms through train accuracy and test accuracy metric measures. Finally, the findings show that the tests of accuracy of the models were 50.16% for multivariate adaptive regression splines (MARS) model, 74% decision tree model, 87% for treenet model, 83% for random forest model, gradient boosting 81%, predictor total consumption played a significant role in the model for all tested models.Conclusionfinally, we conclude that the total consumption of the household came out to be the most important variable which is consistently true to all the algorithms tested. The findings from our study have policy implications for policy makers in Rwanda and in the world generally. We recommend the government to significantly increase public spending on health. Domestic financial resources are key to moving closer to universal health coverage (UHC) and should be increased on a long-term basis. In addition, these results will be useful for the future to assess the out-of-pocket health expenditures dataset.

Застосування методу перевірки статистичних гіпотез для оцінювання реалізації варіантів вкладення інвестицій в сферу виробництва

The use of foreign and domestic financial and material resources is one of the components of the modern concept of economic and social development. The efficient use of these resources is known to be hampered not only by the traditional discrepancy between the amount of resources available and required, but also by the inefficient management of their use. This management is aimed at solving problems: organization of work; control over the targeted use of funds; reasonable allocation of resources; resource investment planning; scientifically sound forecasting of the implementation of decisions made at the planning stage. The article is devoted to solving the last of these problems. In this paper, using the principle of compromise and the minimax method, we propose a variant of applying the method of testing statistical hypotheses to assess the implementation of investment options in the field of production for more informed decision-making at the planning stage of enterprise development in uncertainty. The task of modeling is to determine and estimate the probabilities of implementation of planned investments aimed at promoting the strategic development of the enterprise in case of intersection of hypotheses about the actual distribution of public and private sources of investment in conditions of random and antagonistic uncertainty. It is investigated that to assess the feasibility of investment options available to economic development management bodies, as well as in the relevant statistical offices, available information on the planned distribution of existing or expected investment, i.e. statistical information on characteristics, is the information basis for solving this. task. The probability of forecasting the implementation of each of the observed options is estimated by calculating the probability of making the right decisions and decision-making errors when considering the distribution of investments that are planned for each option of their use. The results of the method contribute to the improvement of management of investments in the sphere of production in difficult real conditions. Keywords: distribution of investment volumes, method of testing of statistical hypotheses, stochastic model of forecasting of phenomena, reliability of realization of planned volumes of investments, compromise determination.

UKRAINE AND THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT: A MODERN CHANGE IN THE VECTOR OF COOPERATION

The article presents the results of the analysis of the current state of financial and credit relations between Ukrainian economic entities and the European Bank for Reconstruction and Development (EBRD). Currently, this issue is becoming surprisingly relevant for Ukraine, due to the lack of domestic financial resources, and therefore there is a need for active development of cooperation with this international financial institution in the context of resource support of expensive national projects. The purpose of the article is to conduct a study of current areas of cooperation between Ukraine and the European Bank for Reconstruction and Development, their current status and possible prospects. There are substantiated the guiding principles of the organization of mutual cooperation of the EBRD with private and state economic entities during support of the transformation processes in Ukraine. Prospects for further development of cooperation with the European Bank for Reconstruction and Development are analyzed. To emphasize the importance of the role of the EBRD, there are given specific examples of successful projects, which are implemented with the financial support of the bank. Were identified the industries to which the vast majority of financial resources are directed and also was analyzed the dynamics of lending for the last 6 years. There is noted a reorientation of the target direction of loans for the implementation of infrastructure projects in comparison with the projects of other industries for the last period. Examples of refusals to finance projects are given and their reasons are analyzed. Was made an analysis of the dynamics of obtaining credit resources from the European Bank for Reconstruction and Development in quantitative and cost terms. Were identified the directions of the impact of the EBRD's cooperation with Ukraine on key areas of the national economy and also was provided an assessment of the potential benefits from the implementation of planned projects. It is proposed to create an advisory group of highly qualified banking specialists who carry out preliminary evaluation of projects and provide recommendations on their compliance with EBRD requirements. Based on the assessment of the current state of Ukraine's cooperation with the EBRD, expectations and forecasts were formed regarding its potential opportunities for development in the near future.

Knowledge as an Object of Transfer Cooperation between Enterprises Foreign and Domestic

Purpose: The aim of the considerations undertaken in this article was to identify the issues concerning the scope and effects of cooperation between companies with foreign capital and domestic entities of foreign direct investment and to identify the scale of impact of foreign companies operating in Poland on domestic entities in the sphere of knowledge. Design/methodology/approach: The main survey was conducted in 2017 and covered a group of 120 foreign enterprises from the list of the largest foreign investors in Poland, drawn up by Polish Information and Foreign Investment Agency (PAIiIZ). As part of the conducted survey, a targeted selection was applied, which guaranteed a selection corresponding to specific survey criteria. The measurement tool was a survey questionnaire, which contained both open and closed questions. In the case of the majority of closed questions, it was possible to add own answers to the proposed variants, not provided by the Author. Findings: By penetrating domestic economies, they bring not only such an important capital, but a whole package of added values, which are worth mentioning, among others: knowledge, managerial skills or an increase in the level of innovativeness of enterprises. The importance of foreign direct investment, as one of the most important factors in the modernisation of the domestic economy, is all the greater the scarcity of domestic financial resources prevents actions to improve the country's competitiveness, but also when it is not possible to create innovations on one's own. An opportunity to bridge the gap in economic development (including the technology gap) of less developed or developing countries is precisely the activity of international companies, which are a form of foreign direct investment. This is because they bring with them the transfer of technology and knowledge, which are stimuli for innovation and development of the modern economy. Research limitations/implications: One of the most basic and uncontrolled constraints is the limited access to data related to the survey - (data protection by enterprises), - original sample selection - The group of investors was selected by comparing the list of the Polish Information and Foreign Investment Agency (PAIiIZ) - the 500 largest foreign investors in Poland, and the list of Fortune magazine - the 500 largest corporations in the world classified by value of income. Apart from direct impact on the economy of a given country, foreign investment may also have an indirect impact (portfolio investment) - the method of quantification of data collected by financial institutions has often made it impossible to distinguish between these two streams of foreign capital. Originality/value: The study carried out by the author of the dissertation is in itself a significant contribution to the development of FDI methodology in Central and Eastern Europe. The most significant results representing the scientific novelty of the dissertation include the following elements: determining the impact of FDI on the formation of business systems related to the broadly understood knowledge and skills of the company - including the management and organization system, quality management, and employment.

Політика України в розбудові вітчизняного інвестиційного клімату

The purpose of the article is to study the main trends occurring in the investment climate of Ukraine, to analyze the main factors that have both positive and negative impact on the competitiveness and investment attractiveness of the domestic economy. As a result of the analysis, Ukraine’s position in the international ratings on investment attractiveness was assessed; the main directions of capital investment were identified, and investor countries were pointed out. Priority state projects are indicated, which are to increase the level of high-quality investment resources. At the same time, significant problems were identified that need to be addressed immediately in order to prevent a slow-down in creating an attractive investment climate for foreign and domestic capital. Systematization of a number of factors allowed to emphasize the need not only to attract to the economy financial resources from other countries, but also to intensify state policy that would promote the investment of Ukrainian funds through a system of incentives, and create the rule of law. Investment plays a central part in the development of a country’s economy; it is investment that makes it possible to implement the latest technologies or innovation; or to significantly expand production capacity of a business entity; or to solve a number of social problems. At the same time, the intensification of investment activity is impossible without promoting the accumulation of domestic financial resources, through a system that would stimulate Ukrainian people to save, and through institutional investors, to transfer capital to the real sector of the economy. Prospects for further research in this area are the following: to determine the degree of the state involvement in the development of a competitive economy; to find the ways to eliminate the imbalances and exogenous and endogenous factors that have a chilling effect on the investment process in Ukraine.

Determination of the main factors of the gross regional product level by econometric modeling methods for the totality of regions of the Russian Federation

The purpose of the research is to identify factors that determine the level of gross regional product, using the construction of econometric models. In terms of the economic theory the volume of gross added value of the region depends on existence of resources, efficiency of use of resources, level of effective demand for the consumption of gross added value, level of export, structure of the regional economy. In the article, by constructing econometric models with a different set of factors, the most essential and statistically significant factors determining the level of gross regional product were identified.Materials and methods. Official data of Federal State Statistics Service for 2016 formed empirical base of the research. The aggregate of the constituent entities of the Russian Federation was considered as a statistical aggregate as an object of study, and both the complete aggregate of subjects and the aggregate of entities with a gross regional product level of less than and more than a trillion rubles were studied. Research method is econometric modeling of gross regional product based on spatial data on constituent entities of the Russian Federation. The parameters of the multiple linear regression models in absolute values and in logarithms were estimated using the least squares method. To test the null hypotheses, a five percent significance level was adopted. Interval estimation of model parameters was carried out taking into account standard errors consistent under heteroskedasticity. The quality of models was defined by coefficient of determination, mean relative error of approximation, Ramsey’s test checking a null hypothesis about lack of the passed variables in model. Implementation of the research was carried out in the RStudio software product.Results. Eight qualitative models of multiple linear regression are constructed. Two models are constructed on the general set of constituent entities of the Russian Federation: 1) model in absolute values with three quantitative signs and one attributive sign characterizing group of entities on the level of a gross regional product; 2) three-factor model in logarithms. Two models are constructed on set of entities with a gross regional product less than one trillion rubles: 1) model in absolute values with seven quantitative signs, five of which were statistically significant; 2) four-factor model in logarithms. Four two-factor models are constructed on set of entities with a gross regional product more than one trillion rubles.Conclusion. In all constructed models the most significant factors of the level of gross regional product are: a) factor of fixed capital (average annual residual cost of fixed assets); b) factor of effective demand (expressed by one of the following indicators: social expenses of the budget, total income of the population, wage fund); c) factor of level of financial resources (expressed by the volume of average annual balances on ruble accounts of legal persons and balance of incomes and expenses of the enterprises and organizations). At creation of econometric models statistically insignificant were factors of resource efficiency (capital productivity, labor productivity, profitability), factors characterizing the volume of foreign economic activity and a share of the extractive industries. The economy of the regions in 2016 can be described as an economy of an extensive type, focusing on the use of domestic capital and financial resources.