Stimulating Investment Activity Research Articles

Tourism industry in Russia and the EU: are there any consequences of multitiered national agenda?

The aim of the research is to analyze the modern trends and today's development stage of tourism industries in Russia and the EU (Cyprus and the Czech Republic). The article touches a vital topic of contemporary relations among touristic sphere representatives (national and local entrepreneurs), society (consumers), and governmental support (national and local authorities) through the prism of their relations. The authors consider fundamental macro-economic indicators of the tourism industry as an object of the research, whereas mathematical methods of forecasting in tourism studies are as a subject of the research. Besides, the authors underline the main directions of entrepreneurship support as a part of being a successful start-up, in our case, in the touristic industry. Furthermore, it is worth noting the characteristics of the tourism market and the peculiarities of its regulation. In the end, the collaborators have concluded by analyzing the fact that the government regulation of tourism is an effective means of stimulating investment activity, improving the quality of services provided, and solving social problems in terms of the real health of the nation. However, it is crucial to bear in mind that the main directions of state policy should be the stability and competitiveness of the tourist complex.

Depreciation as a source of investment resources of an agricultural enterprise

Purpose. The aim of the article is generalization of scientists' approaches to the recognition of depreciation as a source of investment resources of agricultural enterprises and development of practical recommendations on the use of depreciation as a component of their own financial resources in order to recreate the material and technical base of farms in the corporate sector of the agrarian economy. Methodology of research. The following general scientific methods are applied in the course of the study: analysis and synthesis of generalized opinions of scientists on the treatment of categories of “depreciation” and “amortization”, concretization and abstraction – in the development of measures to create a unit depreciation and investment fund, systematic and complex approaches to obtaining evidence the roles and locations of depreciation, as sources of investment resources of agricultural enterprises, as well as abstract and logical methods of research – in determining the economic feasibility of indexing fixed assets. Findings. It has been proved that the formation of depreciation charges by agricultural enterprises is an important instrument for stimulating investment activity. It is proposed to exempt from the income tax part of the taxable profit that participates in the formation of the investment financing fund, in the form of indexation of accumulated depreciation, taking into account the level of inflation. It is established that depreciation can be considered in the market economy as a source of financing of capital investments on the basis of its financial component – real funds in the proceeds from the sale of goods (products, works, services), which should be accumulated for the purposeful use. Originality. The feasibility of introducing a production method of depreciation for 4-5 groups of fixed assets in crop production in the formation of costs to determine profit before tax. In order to increase the role of depreciation as a source of updating and modernization of agricultural capital, it is advisable to: develop a new tax strategy, in particular, preferential taxation, introduce an additional tax burden when using depreciation not for the intended purpose; to pursue an active policy of accelerated depreciation and to introduce methods of state control over the targeted use of depreciation; to use the instruments of state support of accumulation of depreciation in the form of real money in deposit or special accounts with banks; to create regional unitary amortization and investment funds with state participation. Practical value. The proposed method of formation of the fund will allow enterprises to store depreciation resources that are directed to reproduction of fixed capital in their indexed value terms that is, taking into account inflation, which will facilitate the conduct of extended reproduction of production by modernization of the technical base. Obviously, such an approach to the formation of a depreciation accumulation fund is possible only with the break-even operation of agricultural enterprises. In the case of an unprofitable operation of the enterprise, depreciation deductions are directed to cover the losses and have no purpose. This means that depreciation for the recovery of property, plant and equipment is absent, which leads to the conclusion about the crisis. Key words: depreciation; investment; agricultural enterprise; reproduction; fixed assets.

Financial-Lending Stimulation of the Development of the Agro-Industrial Complex in Kazakhstan and in the Russian Federation

This paper examines a set of measures for enhancing the financial-lending mechanism of government regulation and support of the agro-industrial complex (AIC) as part of the implementation of the Government Program for the Development of the Agro-Industrial Complex in Kazakhstan for the Period 2017–2021 and Russia’s Government Program for the Development of Agriculture and Regulation of Markets for Agricultural Produce, Raw Materials, and Food for the Period 2013–2020. The authors have analyzed the volumes of investment and subsidies directed at carrying into effect a set of activities on stimulating investment activity in the AIC. The paper brings forward a set of ways to enhance the mechanism of funding agricultural entities for the purpose of boosting the efficiency of agricultural production in the country.

INFLUENCE OF TAXES ON STIMULATION OF INVESTMENT ACTIVITY

The search for ways and methods of stimulation of investment activity of business entities of Ukraineis one of the burning issues, especially in agriculture.From this perspective, special attention should be paid to tax tools to stimulate investment activities, whichinclude tax preferences, tax rates, special tax regimes and temporary means of influence.After considering each of the mentioned ways of optimization, it was investigated that providing taxpreferences in order to stimulate investment activity has to be direct in nature, however, tax preferences in Ukrainedo not give the expected result since the efficiency of their functioning is rather low in spite of their significantnumber.Tax rates constitute an active and efficient element in the increase of investment activity. However, their misuseprovokes an increase of the level of the tax burden that slows the increase of the volumes of the technologicalproduction. A similar characteristic can be also applied to an investment credit, the use of which, in combinationwith tax rates, gives a good result, provided that the progressive scale of rates but not linear or low-progressive (as inUkraine) is used. Therefore, the analysis of the results of the activities of enterprises of Ukraine showed, firstly, alow level of growth in the volume of commissioning of capital assets, which in 2017 amounted to only 2.6% of thelevel of 2016, and an overall reduction of 8.3 percentage points compared to 2012, and, secondly, a reduction in thevolume and pace of investment activity.It should also be noted that the low level of general and investment activity of enterprises, in particular,agricultural ones, also provokes a decrease in the social standard of living. Consequently, the negative trends in theeconomic environment, which provoked a decrease in the social standards, resulted in a total reduction of the budgetrevenues and a high level of the budget deficit at all levels.That is why, a harmony of the tools of influence and social aims is necessary to activate the investment activityof business entities, especially in the agricultural sector.

MAIN CHALLENGES AND PROSPECTS OF DEVELOPMENT OF TRANSPORT LOGISTICS IN UKRAINE

The article considers the general principles and prospects of transport logistics in Ukraine, defines the directions of development and measures for its improvement. The main problems and challenges that hinder the growth and efficient operation of transport logistics are highlighted. The analysis of cargo transportation by types of transport was carried out, and the index of logistics efficiency of Ukraine was determined. It is concluded that gradual, purposeful integration of the transport complex of Ukraine into the world transport system through the development of international transport corridors can provide not only additional revenues to the budget, but also stimulate investment activity, improvement of transportation technologies, transport infrastructure of the country as a whole and economic development of the regions.

Financialization of the Russian economy: features and role in stimulating investment activity

Financialization of the Russian economy: features and role in stimulating investment activity

Reindustrialization of the Rural Economy in Zabaikalskii Krai: Pitfalls and Possibilities

The article considers the settings, features, and possibilities of reindustrialization (new industrialization) of the rural economy in Zabaikalskii krai. It analyzes the consequences of the collapse of the Soviet agrarian development model in remote regions of Russia, resulting, in particular, in a decline of its agroindustrial complex and chronic losses for local agricultural producers. The paper further describes the pitfalls on the way to a sustainable rural development due to the absence of effective mechanisms necessary to overcome regularly occurring environmental and climatic phenomena, stimulate investment activity, and create competitive advantage. Based on sociological survey data, a range of agribusiness community opinions is presented with respect to the existing problems in the agricultural sector, vital trends and ways of its modernization, and a redesign of its institutional and financial environment, which can boost the development of agribusiness in Zabaikalskii krai. Two approaches are reviewed in the context of reindustrialization of the agroindustrial complex in Zabaikalskii krai. The first presupposes emphasis on attracting large producers capable, at their own expense and with government support, of carrying out industrialization-type investment projects, which will make it possible to reduce dependence on unfavorable weather conditions. The second approach relies on the advantages of a mixed economy, which necessitates the creation of mechanisms for integrating agroindustrial complex enterprises of various levels (small, medium, and large) into the economic external and internal space.

Державна політика залучення інвестицій у депресивні регіони України

Розглянено проблеми залучення інвестицій у депресивні регіони України.Проаналізовано зміст поняття “депресивний регіон” та подано їх класифікацію.Наведено заходи державної підтримки таких регіонів за кордоном і в Україні. Визначено, що за кордоном основний акцент робиться на стимулюванні інвестиційної діяльності суб’єктів господарювання в депресивних регіонах, тоді як в Україні переважає бюджетне фінансування розвитку таких регіонів. Запропоновано відновлення спеціального режиму інвестиційної діяльності у депресивних регіонах для покращення інвестиційного клімату в Україні.

TAX INSTRUMENTS OF INVESTMENT DEVELOPMENT STIMULATION: INTERNATIONAL EXPERIENCE AND NATIONAL REALITIES

Topicality. The urgency of the problem of tax instruments using in the role of means for stimulation of investment activity and of means for creating of a favorable investment climate nowadays grows due to the need for additional resources that are to be involved in the socio-economic development of Ukraine, as well as through the progress of administrative reform, which creates new opportunities for the use of taxes as tools for the stimulating of investment development. Aim and tasks. The purpose of the article is to substantiate the expediency of studying tax instruments as means for the stimulating of investment development, identifying of active and effective mechanisms for the attracting of investment funds for the development of the Ukrainian economy, taking into account international experience. Research results. The article thematically dedicated to the use of tax instruments for maintain of competitive investment policies at the regional, sub-regional, national levels, improving the investment climate in the region. The instruments are integrated into the mechanism with help of general conceptual idea - the ensuring of favorable conditions for the conducting of economic activity through the use of preferential indirect instruments that do not create differentiation between territories and entities, however, contribute to the renewal of capital of the entities. The European model of tax incentives for activation of foreign investments in Ukraine and the Black Sea region is considered and the main factors that have caused insufficient functional significance of tax instruments to stimulate investment development and to provide capital intensification are determined. There are also considered the American model of tax regulation of foreign investment, as well as the Asian model of tax regulation of foreign investment. The mechanism of combination of regulatory instruments in a single set, include measures of tax preferential support, organizational, guarantee-oriented support of investment projects realization on the territory of the Ukrainian Black Sea region, ways to increase the level of local budgets' self-incomes, to introduce the possibility of the determining and applying rates of taxes by local authorities self-governance within the limits set by the Tax Code of Ukraine. Conclusions. Strategic directions for the stimulating of business activity at the national and regional levels are substantial, but for this purpose, appropriate institutional support is required, namely, the relevant changes to the articles of the Tax Code of Ukraine. The prospects for future research in the field of regulation of investment activities are related with the formation of an institutional environment for the implementation of the regulatory function of taxes, the justification of the investment-efficient structure of the tax system.

Стимулювання інвестиційної діяльності у агропромисловому комплексі

Стимулювання інвестиційної діяльності у агропромисловому комплексі

Der deutsche Leistungsbilanzüberschuss

Persistent and significant current account imbalances are often seen as one of the greatest threats to the global economy and a catalyst for protectionist tendencies. Germany is often criticised for running a high surplus. However, economists disagree about whether and to what extent the German current-account surplus is excessive and which policy measures could help to rebalance the current account. The authors argue that the German current-account surplus is a global phenomenon and hence requires in addition to economic policies that could stimulate investment activity in Germany an internationally coordinated approach. Taking into account the specific circumstances of a country, the WTO could act as an institutional framework to deal with global imbalances. In particular the WTO’s Trade Policy Review Mechanism could be further developed into a forum for coordinating members’ trade policy and for agreeing on reciprocal measures among members. The concrete design could be based on other established international mechanisms, such as the European Semester.

ПЕРСПЕКТИВИ РОЗВИТКУ ТРАНСПОРТНО- ЛОГІСТИЧНИХ СИСТЕМ УКРАЇНИ

This article examines the main prospects for development of transport and logistics systems, which will contribute to i ncrease of transportation and development of the transport industry as a whole, development direction and measures for improvement of transport logistics in Ukraine at the present stage are determined. The main functions of transport logistics at enterprises are also highlighted, and the importance of integrating function in the modern conditions of development is substantiated. In the article were made locks that transport and logistics systems are a means of integrating the domestic transport complex into international transport and logistics systems by ensuring their effective interaction; satisfies the needs of consumers of transport and logistics services through the harmonization of their interests with the interests of all participants of the transport and distribution process; promotes the implementation of an effective transport policy based on the rational allocation of investment funds from the state and the private sector; creates a flexible tariff policy for various types of transport in order to increase transit freight flows through the territory of Ukraine on the basis of the formation of optimal delivery schemes. It can also be concluded that the gradual, purposeful integration of the transport complex of Ukraine into the pan-European and world transport system through the development of international transport corridors can provide not only additional revenues to the budget, but also stimulate investment activity, attract foreign capital, improve transport technologies, transport infrastructure of the country as a whole and the economic development of the regions.

ОБОСНОВАНИЕ ПРИОРИТЕТОВЭКОНОМИЧЕСКОЙПОЛИТИКИНАОСНОВЕСТРУКТУРНОГОАНАЛИЗАВАЛОВОГОРЕГИОНАЛЬНОГОПРОДУКТА(НАПРИМЕРЕПЕРМСКОГОКРАЯ)

The structural analysis of gross regional product (GRP) of Perm Krai has been conducted. The GRP has been calculated using income and expenditure approaches to determine the influence of each of its components on the growth rate of generalized indicator. The significant statistical discrepancy of GRP values, calculated with different methods, has been revealed. The GRP calculated using the expenditures approach is characterized by the greater range of fluctuation than the gross added value and the GRP calculated using the income approach. The reason of the discrepancy has been determined. It is the incomplete disclosure of interregional relations at the regional level. The authors have highlighted the challenges that arose when calculating the values, including the resulting simplification of the methods of calculation of macroeconomic indicators at regional level that are quite substantial to regions, including Perm Krai. Based on the sensitivity analysis and the results of the correlation analysis the authors have identified factors that have the significant effect on the rate of economic growth in the region. Correlation analysis has shown the high dependence of the GRP on consumer spending both in Perm Krai and in Russia. Empirical analysis has allowed to substantiate the main directions of regional economic policy and to identify the instruments of public administration. The use of these instruments together with the methods affecting the salary range, stimulating consumer demand, investment and government spending will allow the government of Perm Krai to influence economic growth in the region. Keywords economic growth, regional economy, gross regional product, gross added value, sensitivity analysis, correlation analysis, economic policy.

ADDITIONAL SOURCES OF FINANCING REAL SECTOR ENTERPRISES AND ECONOMIC MECHANISMS FOR INVESTMENT RESOURCES MOBILIZATION IN PRODUCTION PROCESS

Introduction. Today traditional sources of investment resources for the finance of real sector are either virtually exhausted or unavailable to entities due to different objective or subjectivereasons. Therefore, solving the problem of economic growth inevitably faces finding and mobilization of additional funding of production process, which are currently unused as investments due to the lack of necessary legal or economic preconditions, mainly tax incentives. Purpose. In terms of the lack of resources to finance production process it is necessary to solve the dual objective: (i) to seek additional sources of alternative investments for real sector enterprises, (ii) to create the necessary conditions and intensify economic, especially tax incentives to attract financial investments in production process. Results. The problems of identifying additional sources of financing the real sector and enhancing economic mechanisms for attraction of investments into production process are considered. As additional sources of financing the development of enterprises the following are considered: 1) personal income and savings that are not currently used as an investment; 2) financial resources of entities that could be a source of investment, but today, for whatever reasons, are not available to enterprises. Barriers that slow down investment process in Ukraine are identified and relative means are suggested. Conclusion. The analysis allows to identify additional sources of funding for real sector enterprises that are not currently used as an investment, as well as to determine economic mechanisms for their mobilization. Changes to corporate and tax legislation are suggested in order to stimulate investment activity of population and legal entities – investors (residents and non-residents) on the stock market of Ukraine

ПРОБЛЕМИ БУДІВЕЛЬНОГО КОМПЛЕКСУ ЗАЛІЗНИЧНОГО ТРАНСПОРТУ УКРАЇНИ

The article shows the importance of the construction industry to the economy of any country. It analyses the state of the construction complex of railway transport at the present stage of development. The existing sources of financing investment activity in Ukraine, the main tasks of regulation and stimulation of investment activity in the country The main problems of the construction complex of railway transport of Ukraine, namely the renewal of fixed assets, to ensure the effective development of railway transport in modern market conditions. The main causes hampering the inflow of investments into the country. The modern principles of functioning and development of the construction complex of railway transport of Ukraine.

Mekhanizm finansovogo stimulirovaniya investitsionnoy deyatelnosti

Mekhanizm finansovogo stimulirovaniya investitsionnoy deyatelnosti

Инвестиционная пауза в российской экономике и ее преодоление

Investment pause represents the central factor of the current crisis in the Russian economy. The key factor for restoration of economic growth is to overcome this pause. The paper critically discusses various explanations of the slowdown of investment. It is reckoned that the negative expectations of the business community and deficit of finance constitute the main obstacles for overcoming the investment pause. The paper concludes with proposing systemic measures of economic policy to deal with the investment crisis, aimed at re-establishing trust and stimulating investment activity on this basis.

Моделирование процессов эффективного развития в целях стимулирования инвестиционной деятельности предприятия

Моделирование процессов эффективного развития в целях стимулирования инвестиционной деятельности предприятия

R&D tax incentives in the world and stimulation of innovations in Ukraine

It is considered in the article that innovation development of Ukrainian economy depends on the effective tax policy. The article proposes to improve tax incentives for business activities in the field of research and development (R&D). The approach to substantiate the targets of tax policy in the sphere of innovation development of Ukrainian economy taking into account the world experience of using R&D tax incentives is proposed. The analysis of the transformations of the tax legislation in Ukraine showed that the institutional support of innovative development of industry has been slow and not conducive to stimulating investment activity. The experience of countries that are actively developing their industries on the basis of innovation suggests that the tax exemption is not an effective tool to stimulate business entities in strategically important sectors of the economy, and the economy as a whole. Tax incentives such as tax credits, tax allowances, accelerated depreciation, and reduced income tax rate are widely used in the world practice. The R&D tax incentive government program provides financial benefits to companies investing in development of new or improved products, processes, services, materials or devices. The range of eligible activities is extremely diverse and may include any work undertaken to achieve improvements in performance, functionality, usability, efficiency or environmental impact. The vast majority of tax incentives are based on corporate income taxes. In the past years countries have shifted from tax incentives that only apply to increments in a firm‟s R&D expenditure (incremental schemes) towards incentives that apply to total R&D expenditure (volume-based schemes). Their use is determined by the strategic directions and priorities of social and economic development of the government. The role of R&D tax incentives in innovative development is significant. Recommendations for improvement of profit taxation of investment activity, namely the implementation of the tax legislation of Ukraine R&D tax incentives in the form of investment tax credit for R&D are justified. This will be deducted from the amount of corporate income tax of the costs of innovation, thereby reducing the amount of the tax or reduce the amount of tax liability generated. This will help to promote their investment activity and socio-economic development on the basis of innovation.

Favorable Macro Environment: Formula of Investment Activity Growth under the Economic Paradigm Shifted

The article presents the results of study of the impact of the macro environment on investment activities in the Russian Federation for the period 1990-2014. The constructed economic and mathematical models, confirming quite substantial relationship between the dynamics of gross investments in fixed capital and the dynamics of gross profit as a potential source of financial investment in most of sectors of the Russian economy, indicate the need for a qualitative improvement of the macro environment in order to stimulate investment activity in the country during the passage to a new industrial development. The conclusion is that the neo-industrial investments (science-based, high-technology and innovative) act as a key condition for sustainable overcoming of the deindustrialization of production forces, as well as for the passing of the Russian economy to a new development paradigm. The article also makes recommendations regarding the creation of a favorable macro environment for investment activity of economic entities when shifting the paradigm of social and economic development. The recomendations envisage: optimization and reduction of the tax burden; maintenance of macro-economy ratio of profitability, interest rates and inflation; formation of a system of insurance against risk; state support of investments; reducition of corruption in the investment sphere. DOI: 10.5901/mjss.2015.v6n4s4p163