Improvement Of Investment Climate Research Articles

УКРАЇНСЬКИЙ ФОНДОВИЙ РИНОК: РЕАЛІЇ СЬОГОДЕННЯ

Important on the modern stage of development the economy of Ukraine of creation of favorable terms and new possibilities of fund market functioning for the sake of providing of national economy transformation, withstand development of international relations and integration of Ukraine in world space. Exactly success of fund market development leads to the necessity of realization of concrete measures in relation to the increase of liquidity, capitalization, transparency and strengthening of control for activity of fund market from the side of the state, forming of purposeful state strategy of fund market, upgrading the grant of services and service of customers, popularity and trust of citizens to the development of fund market and all like that. A research aim is an analysis of fund market development and prognostication of measures for an improvement and activation of its activity in the direction of professional preparation of specialists for work at the fund market. The methodological basis of research became methods of dialectics, methods and principles of scientific cognition, instruments of economic analysis with aim to forming of certain methodologies of analysis and evaluation of activity of fund market, that allow to accept correct administrative decisions in a post-war period of proceeding in the country economy. The basic hypothesis of research is supposition, that take in attention the instruments of fund market development improved and existent in foreign practice, will allow to improve and extend the sphere of activity of fund market, and start of the new educational programs of preparation the specialists for a fund market and it will promote professionalism of participants and culture of investing in a population. Exposition of basic material of research. It is well-proven that is existing a row of problems that restrain development and effective functioning of the Ukrainian fund market, in particular unstable economic situation in a country, insufficient transparency of market and low level internals of services that is given by certain exchange stocks, insufficient legislative adjusting and others like that. Therefore potential of fund market practically is not used. Reasonable necessity to carry out certain measures in relation to the normal functioning of fund market like activation of functioning of story level of the pension system, bank to the sector, increase of financial education of population and general culture of participants in relation to the self-weighted bringing in investments to the market, bringing of international partners, forming of the new legal mechanisms orientated on European and world effective in general lines norms and rules of fund market functioning. Originality and practical meaningfulness of research are confirmed by the offered directions of improvement of fund market activity and ground of the necessary educational programs of preparation the specialists for it. Conclusions and prospects of further researches. The conducted research allowed to establish, that to basic directions of modernization and fund market development it is possible to take the increase of efficiency of adjusting the activity of issuers of fund market, introduction of new tool at the fund market; stimulation of coming of investments is to the fund market; providing of the reliable and effective functioning of fund market infrastructure; realization of effective public policy of improvement of investment climate. Further researches will be sent to original educational program development in relation to expansion of limits of specialty «Finances, banking and insurance» to the level «Finances, banking, insurance and fund market».

WORLD EXPERIENCE OF TAX AND FEES MANAGEMENT

Introduction. Given the deepening disparities in the economic and social system of the state, political confrontations, resulting in imbalances in public finances and increased debt risks, the tax component should be the basis for the formation of budgetary resources of the state. State revenues determine the social and economic level of development of regions and countries, as well as financial support of the population. Looking at this, the main task of the state is to balance its revenues with expenditures. Since a significant excess of expenditures over revenues lead to an economic crisis, rising public debt, the budget deficit of others. The tax component is the basis for the formation of state budget resources in an unstable fiscal space. This is an important link that contributes to the development of social and economic relations and requires constant monitoring. Methods. The study uses the fundamental provisions of economic theory, tax theory, as well as studies of domestic and foreign scholars. General scientific principles of conducting complex scientific researches were used to solve the set tasks. In the process of research a number of general scientific methods were used, in particular: analogies, logical generalization and system analysis. Results. Based on the selected problems, the foreign experience of such countries as the USA, Germany, Canada, France, Japan, Australia, Great Britain and Italy was studied, on the basis of which the prospects of improving the collection of taxes and fees in Ukraine were singled out. Discussion. In order to solve the problems of collecting taxes and fees, it is necessary to: gradually shift the fiscal burden towards direct taxes, which will be a direct result of increasing the dependence of public authorities on the economic development of the territory; the preservation of the current rather high role of intergovernmental transfers is a consequence of the strong differentiation of regions according to the level of social and economic development and the objective necessity in modern conditions; competition between regions should, first of all, be carried out at the expense of formation of a favourable business environment: improvement of investment climate, development of infrastructure, reduction of administrative barriers, instead of establishment of preferential tax regimes. Prospects for further research on the collection of taxes and fees may be to strengthen the study not only of the level of tax burden, but also the optimal combination of direct and indirect taxes. Keywords: taxes, tax system, budget, budget revenues.

Досягнення реформи децентралізації та її бюджетна ефективність на прикладі Павлівської ОТГ у Волинській області

The article discusses the topical issue of the present day: decentralization and its budget efficiency (on the example of the Pavlivska amalgamated hromada in the Volyn region). A significant feature of decentralization today is voluntary association with other territories in order to improve living conditions and development of the area. Decentralization facilitates the improvement of investment climate, forms an efficient environment for attracting investments and financing the activities of Ukrainian regions. That is why decentralization allows amalgamated hromadas to reveal their internal potentials. The result of local self-government depends on the appropriate use of financial resources, independent resolution of regional issues. The publication uses indicators of budget self-sufficiency, budget effectiveness, budget transparency to analyze the budget efficiency of the territorial community, based on an assessment of the level of implementation of the distribution and redistribution of the local budget of the amalgamated hromada. Budget self-sufficiency demonstrates how the territorial community can develop itself, budget effectiveness is responsible for the expenditure part and the result of these costs, and budget transparency — for insightfulness and openness of information for citizens. The introduction of decentralization aims to improve the system of management of territorial communities and the system of administrative and territorial structure of the country, with the improvement of the state of residence and development of citizens regardless of their place of residence. With the help of decentralization, the investment climate of the country is improving and an efficient environment is being formed to attract foreign and domestic investors. Financing of territories allows opening up new opportunities for the evolvement of amalgamated hromadas.

ИНВЕСТИЦИОН ФАОЛЛИКНИ РИВОЖЛАНТИРИШ МАСАЛАЛАРИ

In this article, the current issues of Uzbekistan’s national economy development are discussed based on further improvement of investment climate in the country. An important value is given to further perfection of legal base. The ways of domestic and foreign entrepreneurs’activation are justificated.

Regional leadership of agrarian production in Ukraine: assessment, problems and directions of development

The leading regions of Ukraine’s agricultural production are the most eye-catching for attracting foreign investments, introducing innovative technologies and entering international markets. Research of the main factors, characteristics and experience which determine the agricultural guidance of the regions provide information to the potential investors for the accomplishment of investment and innovation programs, identify problems and ways to solve them for further expansion of the agricultural sector. The study applied the method of estimating the level of agricultural production in terms of gross agricultural output per one person of the rural population (GAO per one person of the rural population). The evaluation of the leadership of agricultural production in the regional aspect was carried out on the basis of the Ukraine’s regional allotment into three groups, formed by the ranges of the ratio of GAO per one person of the rural population to its average value in Ukraine. A group of regional leaders from 15 oblasts (regions) that form the leading agricultural district (Vinnytsia, Dnipropetrovsk, Donetsk, Zhytomyr, Zaporizhzhia, Kyiv, Kirovohrad, Mykolaiv, Poltava, Sumy, Kharkiv, Kherson, Khmelnytsky, Cherkasy, Chernihiv) has been established. In these oblasts, agricultural products worth UAH 525298.1 million are produced. (77.1% of the volume in Ukraine), is sold for export for USD 8181.0 million (40.3% of Ukraine’s agricultural exports). It is determined that in the leading district the area of agricultural lands is 27.2 million hectares, 82.7% of which are arable lands of fertile chernozem. The structure of production has changed towards crop production, the most profitable and export-oriented one. The rural population has shrunk to 7.1 million, reducing its labor potential. More than 77% of agricultural machinery is concentrated in the district, but this is on the background of its overall reduction by 3.5 times or even more (in 2019 compared with 1990). The main problems in land use are: high degree of plowing of agricultural lands (the highest in five oblasts reaches 81.5-88.1%), violation of the system of scientifically justified crop rotations, insignificant application of organic fertilizers (0.1-1.3 t/ha), which intensifies soil degradation processes. Investments in the leading agricultural district of 15 oblasts amount to UAH 45.3 billion, or 77.3% of the total volume in Ukraine, but their main part (65.4%) is own funds of enterprises and organizations and only 0.7% are the funds of foreign investors. The influence of farms’ categorical factors and the scale of commodity production on certain types of products is analyzed and a significant influence on the leadership of large agricultural associations (agricultural holdings) is revealed. The system of internal and external factors influencing the leadership of the regions is generalized in our study. The measures of the state agrarian policy should be intended to transition to production of products with high added value, optimization of land use system, improvement of investment climate, rendering of the state help to agrarian producers, development of infrastructure and system of logistics, information and legal support of agrarian export, introduction of innovative technologies in the field of decision making in farming.

Economic growth and prospects for economic development of African countries southward Sahara

This article is dedicated to analysis of the process of economic growth and development in African countries southward Sahara – the least industrializes region of the world. The main prerequisites for industrialization and economic growth in of African countries southward Sahara are the high urbanization ratios: the growing number of workforce, their qualification level, high portion of youth within the population structure, expanding domestic market, growing middle class, de-escalation of internal political confrontations and attenuation of cross-country armed conflicts, advancement of digital technologies. The information and empirical basis is comprised of the data of the United Nations Industrial Development Organization and the World Bank. The scientific novelty consists in determination of the points of growth in Africa southwards Sahara by means of application of the methods of statistical data analysis. The authors analyze the indicators of economic growth and industrialization of African countries southward Sahara, substantiate the increasing role of this region for the global economy. The article reveals spatial aspects of industrialization of African countries and allocation of the industrial production. The authorities of African countries must manage the industrialization processes, namely focus on the development of infrastructure, improvement of investment climate, transparency of legislation, reduction of administrative expenses for businesses, reduction of corruption, and prevention of armed conflicts. The regional integration would contribute to solution of the aforementioned issues. The key vectors in cooperation of African countries southward Sahara and Russia are the areas of oil extraction, energy sphere, information and communication technologies, and agriculture.

Globalizing challenges of Ukraine’s economy: diagnosing the state of investment climate as a driving force in the context of economic tendency

Globalization, which has become one of the defining characteristics of the world economy in the 21st century, has put before member Governments issue search of new forms and methods of adaptation of national economic and political-legal environments to modern requirements of international economic relations. Rapid changes in the factors determining competitiveness on world markets, dynamic development of the global environment, forcing Governments in the formation of conditions for economic growth, actively seek to ensure national competitiveness on a global scale. The most urgent is the need for management of investment climate of Ukraine’s economy, which assure its economic development, taking into account the social and environmental interests of the society. However, the process is compounded by the lack of a clear understanding of its essence. The development of world financial crisis resulted in forming of unfavorable terms of ménage and considerable abbreviation of investment activity. Determination components which have influence on investment attractiveness has a large economic value, as it is necessary at first correctly to estimate terms which processes of investments are for, and then carry out the search of the most attractive object of investing. In the article the role of investment climate is examined in development of economy, in bringing in foreign investments. Constituents influencing on forming of investment climate are analyzed. Directions of improvement of investment climate of country are certain. The main purpose of investment policy is the development of optimal conditions for investment of own and borrowed financial and other resources that provide income increase on the invested capital for expansion of enterprise economic activity and the development of better conditions for winning the competition. Problem of achieving steady growth of the Ukrainian economy requires greater investment and innovation processes, the reorientation of current management and regulation for long-term strategic planning.. Keywords management, investment climate, constituents, factors, evaluation, attractiveness.

Deoffshorization of economy of the Russian Federation: evolution of approaches and main priorities of the present stage

In recent years in the Russian economy a number of actions for deoffshorization was held, in particular, there was developed a legislation on government procurement and also about activity of the controlled foreign companies. At the same time, there is a num- ber of the problems connected with improvement of an economic situation in the country, amnesty of the capital and further improvement of currency, customs and tax control. In the article are analysed the main directions of improvement of a regulatory framework of deoffshorization, feature of its development in the conditions of economic sanctions and also are proposed measures for improvement of deoffshorization taking into account increase in transparency of offshore schemes, extents of disclosure of tax information and improvement of investment climate of the country. The author came to a conclusion that it will be possible to speak about effective deoffshorization when the fiscal and monetary authorities will not proceed the policy at that business in our country is unprofitable and unprofitable. A barrier is also that in Russia there are no equal conditions of the competition in respect of conducting business activity to foreign countries. Therefore the policy deoffshorization has to be connected with creating favorable conditions for development of small and medium business.

Формирование современной системы регионального и муниципального управления

<span>В статье проводится анализ действующей системы регионального и муниципального управления с целью выявления проблем, которые она не в состоянии решить или решает не в полной мере. Отмечается, что современное социально-экономическое развитие России сопровождается высокой пространственной дифференциацией регионов и муниципальных образований, при этом региональная экономическая политика и институциональные механизмы её реализации не учитывают региональных особенностей, многоукладности экономики и особой роли пространственного фактора в достижении высоких темпов социально-экономического развития. Показано, что на протяжении многих лет система управления демонстрирует свою неспособность обеспечить реализацию периодически формулируемых стратегических целей развития экономики и региональной политики. Доказательством неэффективности этой системы является невыполнение намеченных планов и приоритетов. Предложены меры по совершенствованию институциональной системы управления, направленные на улучшение инвестиционного климата, модернизацию экономики, рост уровня жизни населения регионов и муниципальных образований и повышение эффективности регионального и муниципального управления.</span>

Имидж региона: на примере Республики Саха (Якутия)

Development of region image now gains the central importance as exactly because of it the territory becomes well-known and recognizable. Possibilities appear for region’s strengthening and activity manifestation in the domestic and world market. The positive territory image contributes to the improvement of investment climate, improvement and development of tourist infrastructure, increase in revenues of service sector and increase in competitiveness level. In this regard, we consider this subject relevant. We present the scientific review of definitions “image” and “region image”. We allocate the contemporary approaches to a research of region image by means of the comparative analysis. We prove that the favorable natural and cultural region heritage gives all opportunities for region positioning as an attractive investment. We analyze objective, subjective factors and problems for positive region image development. We also describe sights of Yakutia as advertising and the guide for potential tourists as the image potential of the Republic. We conclude that development of favorable region image will give the opportunity to offer the international community the attractive region which has favorable natural, cultural and historical, social and cultural conditions.

Special Economic Zones of the Russian Far East: economic and legal prerequisites for improvement of investment climate

Enhancing the attractiveness of the Russian Far East’s investment climate receives considerable attention. For this purpose free economic zones and specific organizational set-ups for development are being created. However, the first results of their functioning give reasons to point to the need to improve processes. By using the method of economic and legal analysis of legal acts, the authors propose solutions to three key problems. The authors clarify the interpretation of the concept of the ‘resident of Advanced Development Territories of the Far East’ by analyzing its constitutive elements ‘registration’ and ‘implementation of activities’, as well as provide options for dealing with problems at law enforcement and law making levels. The study reveals that problems relating to residents’ realization of the right to declare Value Added Tax reimbursement are embedded in the condition of its application, in other words, in the underdevelopment of a guarantee instrument between the bodies of the Federal Tax Service and the management company, as well as in the limited financial capacity of the latter. To assess the effectiveness of protective functions and powers of the management company, the authors analyse the released practice of commercial courts in the Far Eastern Federal District on disputes involving both the residents of the territories with special business regimes and the management company. The authors draw attention to the ineffectiveness of the management company in this direction and recommend undertaking a preliminary (pre-trial) analysis of contentious situations involving residents on the basis of criteria formulated in this paper.

Role of Stock Exchanges in Economic Development of Uzbekistan

The paper is devoted to study the contemporary role of investments to economic development in the context of Uzbek stock exchange. The comparative analysis of economic development and stock market trends in Uzbekistan, Kazakhstan and Russia for the period of 2000-2015 are conducted using documentary analysis, quantitative and qualitative analysis, and other statistical methods of research.The results reveal that Uzbekistan has made notable change in regulation and improvement of investment climate and has stable economic development trends for the studied period. However, Stock market development in Uzbekistan remains weak and recent government effort to accelerate privatization is expected to boost the market and support foreign investments attraction.

Global Energy Trends and Their Implications for Russia: A Pathway to the New Energy Wave

Despite the success of many countries in increasing energy saving and energy efficiency, the global energy consumption is expected to continue its growth. The main reasons are economic development and population growth happening primarily in developing and emerging economies, especially in India and China. In such circumstances fossil fuels will remain the dominant energy source in the medium and even long run. The present research paper aims at analyzing the current global trends in the energy sector identified through literature review and expert tools, and their influence on Russia. Considering a broad range of factors, the paper determined the following main challenges for the Russian energy sector: tightening competition at international energy markets, the need for comprehensive modernization and stronger energy efficiency measures, the need for technological catch-up in a number of energy sector segments, the need to increase recovery factor at traditional oilfields, and the need to diversify energy mix by increasing the share of renewables. The paper also considers the main rationale for the last challenge that include strengthened security, reliability and sustainability of the Russian energy sector. Among the key preconditions for advancements in renewable energy are improvements in investment climate, modernisation of the central grid and changes in energy policy. The paper is based on the outcomes of the first stage of the Foresight project devoted to renewable energy technologies

Comment on “Philippine Infrastructure and Connectivity: Challenges and Reforms”

Llanto (2016) starts by highlighting the broad challenges for the Philippines by contextualizing the growth and success of the service industry, that is, the business process outsourcing (BPOs) industry as well as e-commerce. These new types of infrastructure and connectivities have certainly led the recent growth trajectory of the Philippines. It is important to note that such growth was achieved despite limited growth in foreign direct investment (FDI) due, in part, to constraints in the development of labor intensive manufacturing in the domestic market. Moreover, other infrastructure provision, such as transportation (roads, railways, ports), power, and water, have not progressed well enough in attracting FDI despite the various incentives that have been introduced. For example, the power sector experienced an initial development with public–private partnership (PPP) investments, but later on stagnated due to fiscal constraints imposed by the government through privatization as well as policy changes to inhibit such infrastructure provision. In addition, the development of the power sector has been constrained by other factors such as stagnating investment in the bottleneck infrastructures such as transmission lines or gas pipelines, a lack of economics of scale, and an incomplete market design and regulatory regime. Llanto also suggests the importance of overcoming regional disparities through regional convergence strategies such as the Road- Roll-On Roll-Off Transport System (RRTS). As described, infrastructure provision and improvements in logistics have a positive correlation with and impact on both macro- and micro economic dimensions. Given the fact that high poverty incidence in rural and conflict affected areas as well as regional disparities continues to persist in the Philippines, appropriate infrastructure provision to enhance intra-country connectivity should also be linked with policy considerations for renewed industrial policies to enhance mobility and employment opportunities by taking into account the comparative advantages of industrial clusters across the country. Moreover, how to deal with infrastructure provision in urban areas from the viewpoint of the development of cities as industrial or population clusters and centers of growth is also critical. Because urbanization is one of the major developmental challenges, the provision of quality and adequate infrastructure to provide intra- as well as inter-city connectivity in enhancing the productivity of the urban city areas should not be overlooked. On infrastructure financing, Llanto provides an important viewpoint by suggesting the more effective usage of Official Development Assistance (ODA). As the Philippine government increases its preference for utilizing local funds in infrastructure spending while pursuing more PPP projects to be contracted out to the private sector, appropriate risk allocation and transparency of procedures in implementing infrastructure projects are becoming more important. In this context, the Philippines' government appreciates ODA resources if such assistance provides value for money through acquisition of quality sustaining appropriate technologies and services and transfer of expertise. ODA could play a vital role as a resource for providing effective technical and financial solutions in the areas of urban planning and land use plans, modal integration in the transportation sector, PPPs, building resilient infrastructure etc. The necessity of providing disaster resilient infrastructure cannot be over-stressed in the context of the Philippines. Llanto rightly points to the global and local attention towards the provision of policies as well as physical and institutional infrastructure conducive to disaster resiliency as emphasized in the principle of Build Back Better. What is crucial is not only how the government/localities rebound quickly with subsequent assistance ex-post of disasters, but also how to prepare and implement adequate policies, planning, and financing instruments which enable the government to provide appropriate budgetary provision, public spending, and capacity development conducive to disaster resiliency ex-ante to disasters. Being one of the most hazard prone countries in the world, the strong initiative by the Philippine government to pursue a disaster risk reduction, management, and financing strategy provides a clear policy direction reflecting this viewpoint. Last, continuity and coherence of government policies and reforms also cannot be stressed more. Sustaining policy coherence over the long-term provides positive signals to the improvement of investment climate and strong incentives to attracting FDI. In terms of long-term infrastructure planning and implementation, the “Road Map for Transport Infrastructure Development for Metro Manila and Its Surrounding Areas” which was approved by the National Economic Development Authority (NEDA) Board in 2014, for example, has provided the Philippine Government with a single robust framework wherein various project proposals in the transportation sector to be implemented by various government agencies in Metro Manila are identified and monitored (see NEDA 2014). This framework should serve as a strong basis to create expectations for the continuity of project planning and design, as well as enhancing coordination among oversight as well as implementing agencies over the long term, thereby enhancing the country's connectivity and competitiveness to improve the investment climate as a whole.

Потенциал и перспективы инвестирования в туристско-рекреационную отрасль Республики Крым

In the article the author makes an attempt to analyze the investment potential of tourism and recreation industry of Crimea taking into account modern geopolitical and socio-economic realities. Main resultsand tendencies of investment activity on the territory of the Republic of Crimea in 2013-2014 are described, and also its further prospects are marked. It is shown, that because of the negative socio-political and socio-economic processes in Ukraine and Crimea during previous years in the region large investment projects were not practically undertaken, including those related to creation of a resort mega complex, the so-called «Crimean Antalya». At the same time now there is a large number of the investment proposals, related to creation of traditional objects of location, objects of general resort infrastructure, objects of the specialized tourism (mountain-skiing, yachts, go If-tourism), and also entertaining parks of thematic orientation. On the basis of method of SWOT-analysis the author determines strong and weak sides, opportunities and threats related to investing in the tourism and recreation infrastructure of the Republic of Crimea at the current stage. Basic priorities of regional investment policy, for which the authorities of the Republic of Crimea declared such fundamental principles, as equal possibilities, «transparency», borrowing of the best experience of other regions of Russian Federation, are also marked. Major directions of activities on the improvement of investment climate should become: final transition of tourism and recreation industry of Crimea into the legal field of the Russian Federation; creation of a free economic zone (a zone of priority development) with a preferential tax system; synchronization of existent investment projects with the Federal Target Program «Socio-economic development of the Republic of Crimea and Sevastopol until the 2020»; maintaining social and political stability in the region and overcoming negative consequences of the international sanctions, imposed on by a number of countries of Europe, North America and Pacific region.

Investment Policy Of A Region In The Conditions Of The Budgetary Restrictions And Economic Sanctions

The article is devoted to the assessment of influence of budgetary restrictions and economic sanctions on investment policy of a region. The paper studies the bilateral negative effect on socio-economic development of regions from both the external sanctions and braking mechanism of economic development within the country. On the basis of the comparative and statistical analysis, the need to change focus of investment policy from the growth in volumes to qualitative perfecting is proved. The new direction of investment policy connected with the import substitution process realization, its combination with acceleration of innovative development on the certain example of Sverdlovsk region is analyzed. The conclusions and offers stated in the article are applicable to the public authorities of subjects of the Russian Federation, experts in the sphere of regional investment policy and improvement of investment climate, and also the specialized organizations specialized in attracting investment and work with investors in regions of Russia.

Анализ инвестиций в основной капитал в России

В статье проанализированы особенности инвестиций в основной капитал в России за период с 2008 по 2013 годы. Отображены меры, направленные на улучшение инвестиционного климата в России, рассмотрены структуры инвестиций в основной капитал по различным аспектам.

Ввоз и вывоз капитала: эффекты для России

In recent years Russian Federation has become one of the leading exporters and importers of capital in the world. The article reviews Russia’s place in the cross-border capital movement, the dynamics and structure of incoming and outgoing foreign direct investment (FDI), and of other types of investment, such as portfolio investment, bank and other loans, international reserves. The main effects of Russia’s capital exchange with the world on domestic economy are estimated. It is stressed that FDI somewhat contributed to the economic growth, diversification of production and productivity. At the same time, the advantages of FDI for modernization of industry were substantially underutilized. The private capital outflow reflects the intention of Russian leading companies to become global international corporations and to participate in the global value chains. However, this slows capital accumulation inside the country, therefore, preventing technological modernization of production and, as a consequence, an increase of enterprises’ competitiveness. Significant portion of capital export is illegal or “grey”. The authors conclude that the optimal model of capital exports and imports can be achieved only by crucial improvement of investment climate in this country. Special attention is paid to institutional changes carried out in recent years to improve business and investment climate in Russia. At the same time, it is shown that even if there is no radical change in business environment, the government and the companies are able to make extra investment inside the country. The article outlines the main directions and barriers for further development of capital movement components.

Pattern of capital inflows in BRICS: Aspects to ponder for policy implementation

Surge in capital inflows can stimulate economic growth in developing countries and also lead to macroeconomic fluctuations of varied nature. This makes the analysis of determinants of capital inflows in developing countries interesting. The behavior of capital inflows in the long and short run has been under study. Such analysis could help to avoid undesirable consequences of surge in capital inflows. Traditional literatures on determinants of capital inflows are bifurcated into push and pull factors. The present research focuses on pull factors determining the inflows of capital. This research tries to identify main determinants of capital inflows in BRICS using Vector Autoregression (VAR) technique. Johansen cointegration and Augmented Dickey fuller test are used for data analysis. The Vector Error Correction model (VECM) which is a restricted VAR is used for the analysis since Johansen cointegration test suggested cointegration among the variables in the long run for BRICS. The lag length of the model is determined by performing Schwarz Information Criterion. Impulse response function is used to gauge the effects of shocks on capital inflows with World Bank’s annual data (1992-2012). The variables used in the study include capital inflows (sum of FDI and portfolio equity), inflation, exchange rate, Gross Capital Formation and Gross Domestic Product. All the variables are constant at 2005 U.S. dollars. All the diagnostic testing done for BRICS countries made it relevant to estimate the equations using OLS estimate. In Brazil, capital inflows are influenced by lagged and current values of GDP, GCF and Exchange rate. The Vector Error Correction Model (VECM) estimates of Russian economy indicates cointegration of capital inflows with GDP and Inflation in the long run. Capital inflows in Indian economy is determined by inflation and exchange rate. In China higher GCF plays an important role in attracting capital inflows. In South Africa only inflation is causative factor which determines capital inflows. The Gross Domestic Product is observed to be the vital factor determining the capital inflows to BRICS. The study forecasts improvement of investment climate for attracting capital inflows into BRICS. Economic stability of BRICS is found to be one of the major factors influencing capital inflows in BRICS. The study forecast that in economies of Russia, India and South Africa emergency measures should be taken to curb inflation. Inflation, GDP, GCF and exchange rate are critical factors in attracting capital inflows, which helps in formulating appropriate policies for improving the performance of domestic economy.

PERENCANAAN UMUM PENANAMAN MODAL (RUPM) KOTA TANGERANG SELATAN

This study aims to formulate and plan for capital investment policy and also to formulating investment improvement strategy in South Tangerang City. The method used Analitycal Hierarchy Process (AHP) and SWOT analysis. From the result indicate the direction of policy stakeholders' opinion: (1) Improvement of Investment Climate, (2) Encouraging Investment Distribution, (3) Focus on Food Development, Infrastructure and Energy, (4) Empowerment of Micro, Small, Medium, and Cooperative (MSME), (5) Provision of Facilities, Convenience, and / or the Investment Incentives, and (6) Investment Promotion. The prioritized sectors are trade, industry, hotel and restauran as first priority sector with eigenvalues vector ​​of 0.232, the second priority is health sector with eigenvalues ​​vector of .202, the third priority of education with the third largest eigen vector 0.199, the fourth priority sectors is agriculture, livestock and fisheries with eigenvalues ​​vector of 0.192 and the last priority is tourism sector with eigenvalues ​​vector only of 0.169.DOI: 10.15408/sjie.v3i1.2054