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муниципалитет. В Республике Корея ПБ активно внедряется через интернет с использованием цифрового портала «Digital Budget and Accounting System» («D-Brain») [6].
Правительство страны поощряет внедрение ПБ на национальном уровне. Несмотря на наличие универсальных правил, которые регламентируют процесс ПБ по всей стране, качество последнего отличается по населенным пунктам. С целью преодоления качественного разрыва, например, в Йонсу-Гу организованы бюджетные школы, в обязанности которых входит обучать местных жителей основам партисипа-торного бюджетирования.
Выводы. В числе долгосрочных эффектов ПБ следует отметить:
1. Рост удовлетворенности населения качеством социальных услуг.
2. Минимизация иждивенческих настроений со стороны населения и активизация его участия в местном развитии, укрепление взаимного доверия населения и органов местного самоуправления.
3. Эффективность бюджетных решений:
а. Проекты в рамках ПБ — экономичнее тех же проектов, но реализуемых без вовлечения населения. Кроме того, такие объекты бережнее эксплуатируются.
б. Методика ПБ — это управленческий инструмент, позволяющий выявлять самые острые и насущные вопросы на местах, часто невидимые из центра, требующие немедленного вмешательства.
Таким образом, вовлечение населения в распределение бюджетных средств приводит к:
- повышению открытости деятельности органов местного самоуправления;
- информированности и финансовой грамотности населения;
- развитию социального партнерства органов местного самоуправления и общества в бюджетной сфере, создавая механизм повышения гражданской активности;
- созданию условий для развития институтов гражданского общества.
Список литературы:
1. Вагин В. В., Гаврилова Н. В., Шаповалова Н. А. Инициативное бюджетирование: международный контекст российской версии//Научно-исследовательский финансовый институт. Финансовый журнал. 2015. № 3.
2. Bjarnason R. Better Reykjavik/Open Policy Making. 15 October 2014 (https://openpolicy.blog.gov. uk/2014/10/15/better-reykj avik/).
3. Keblowski W., van Criekinger M. Participatory Budgeting Polish-Style. What kind of policy practice has travelled to Sopot, Poland?//Hope for Democracy. In Loco Association, 2014. P. 369.
4. Participatory Budget Framework Act (Law 28056) 2003.
5. Sintomer Y., Herzberg C., Allegretti G. Learning from the South: Participatory Budgeting Worldwide - an Invitation to Global Cooperation. Updated Version. Bonn: InWEnt gGmbH, 2013. P. 27.
6. The Budget System of Korea//Ministry of Strategy and Finance. Republic of Korea. 2014. Режим доступа: http://english.mosf.go.kr/upload/pdf/TheBudgetSystemofKorea.pdf
Serzhanov Vitalii Victorovych Uzhhorod National University (UzhNU), Ph. D, Assoc. Prof., Dean of the Faculty of Economics Kostov'yat Hanna Igorivna, Uzhhorod National University (UzhNU), PhD student, teacher of «Finance and Banking» Department,
E-mail: [email protected]
The real situation of foreign direct investments (FDI) in Ukraine
Abstract: The real situation of foreign direct investments attraction in the economy of Ukraine is analyzed in the article. The impact of foreign direct investments (FDI) on economic development of Ukraine
and directions of optimization of the investment climate are revealed. In Ukraine, investments are one of the most important means of ensuring the country's emergence from crisis and achievement of real structural changes in the economy.
Keywords: economic growth, foreign direct investment (FDI), portfolio investments and other types of investments.
Research results
Foreign investments are the powerful source of the external financing for a country with a transitional economy. Taking into account it Ukraine has very large investment potential, and more precisely are large prospects in bringing in of investments and them the effective use. At the same time in Ukraine there are such favorable terms for investing, as strategically advantageous geo-economic location, presence of various natural resources, excess capacity, high level of science, low enough level of remuneration of labour, euro integration vector of development, presence of considerable markets of sale and other [2].
Direct foreign investments carry out positive influence on economic development of country, promoting the general productivity of factors of production, and if to talk more generalized, efficiency of the use of resources in the economy of country-recipient. It takes place after three streams, namely:
- due to close connection that exists between nil and foreign trade streams, by means of cross flow from one sphere of economy in other;
- according to other to the types of the external operating on the business sector of country-recipient;
- direct influence is on structural factors characteristic for given country-recipient.
So, in the least developed countries, FDI had a lesser impact on growth, which is always explained by the presence of the so-called threshold level external influences [4, 88].
FDI inflows into the country proving income is not just additional capital, and obtaining a unique combination of capital, management experience, advanced technologies, access to capital markets, sales of the investor.
The economic benefits of foreign direct investment is achievable for our country, but these benefits do not occur automatically. In order to obtain maximum benefit from the presence of foreign companies in the Ukrainian economy, of paramount importance is the availability of healthy, supportive organized environment that encourages both domestic and foreign investments, introduction of innovations and improvement of skills — all of this contributes to competition between companies.
Country that has a vulnerable legal base on the whole and legislative system that provides the legal adjusting in
the sphere of competition and in industry of ecology, or all these laws are not able in practice, then one presence of strong in a financial relation foreign companies for stimulation of economic development of country it can appear not enough.
Also, it is necessary to notice that direct foreign investments as well as official help for development can not be the basic means of decision of problems of development of Ukraine. As a country, what helpless to attract facilities for investments from internal sources — improbably will get nil. For example, having regard to a provision in Ukraine, deceleration of bringing in of volumes of foreign investments is predefined not only that a home economy became less attractive for foreign investors but also that many these investors during a crisis pointed the money at internal markets for maintenance of economy of the countries and sharply shortened investment investments abroad [3, p. 70], and some investors in general stopped realization of investment projects on set time.
Regarding foreign direct and portfolio investments it is necessary to note that they are different in the character of functioning and different effects on the Ukrainian economy. So, direct investments influence the development of material production and the sphere of services in Ukraine, and portfolio — to the financing cash flows in our country. While both of these investment flows quite closely linked.
Will analyse the dynamics of direct foreign investments, considering a table 1.
As see that 2014 to volume of foreign receivabless to Ukraine grew constantly, the improvement of investment climate was assisted by bringing in of foreign capital during intensive development of processes of privatizing [12].
Statistical data in relation to the dynamics of wave of foreign investments in 2015 in the economy of Ukraine, unfortunately, does not ground for optimism. According to by data of the State committee of statistics of Ukraine, general volume of direct foreign investments (FDI) to Ukraine on January, 1 in 2015 presented 45 milliards 916 million (at the end of 2015 amounted to 43,37 billion. USA), or 19.5% less than the volume of investment at the beginning of 2014, the outflow of foreign invest-
ment during the first quarter of 2015 amounted to only ning of 2014-1328$.) [5]. 2.91 billion.) and per person was $ 1072. (at the begin-
Table 1. - Dynamics of receipt of direct investment in Ukraine in 2005-2015 (as of 1 January) [5]
Years
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Volume of FDI, billion. USA 9,0 16,9 21,6 29,5 35,6 39,2 43,8 49,4 53,7 57,0 43,9
Growth of FDI, rate,% 32,4 87,8 27,8 36,6 20,7 10,1 11,7 12,8 8,7 6,1 -19,5
A general volume of direct foreign investments is from Ukraine in the economy of the world countries, on the state on January, 1, 2016 (after a story result), $6 equaled 210 millions, including in the countries of EU — $6 006 millions (96,7%% general volume), in other countries — $204 millions (3,3%) [8].
Requirements of the Ukrainian direct investors after promissory instruments to the enterprises of the direct investing abroad upon the current date presented $217, 1 million In the total the general volume of FDI (equity and promissory instruments) from Ukraine in the economy of the world countries laid down $6 427,1 millions.
The investments came from 133 countries. The ten major investor countries, which account for 83.0% of the total volume of direct investment includes Cyprus (11.7 billion dollars), Netherlands (5.6 billion dollars), Germany (5.4 billion dollars), Russia (3.3 billion dollars), Austria (2.4 billion dollars), United Kingdom (1.85 billion dollars), Virg in Islands (1.7 billion dollars), France (1.5 billion dollars), Switzerland (1.3 billion dollars), Italy (972 million USA) [9].
Most of the investment volume of 13,515 USA or 30.8% of the total volume accounts for Ukrainian industry. Among the regions the largest investments (as at 1 January 2016) produced by the enterprises of Donetsk region — $5 391,2 million (up 86.8%), of Kyiv — $633,5 million (10.2 percent) and Dnepropetrovsk region — $71.9 million (1.2 percent).
Last year direct investments from Ukraine were carried out to 47 countries of the world. The most volumes of capital ($5 817,6 millions) are directed to Cyprus. To
Russia it is brought in $122, 8 millions, to Latvia — $69, 8 millions, to the British Virgin islands — $51, 3 millions, to Poland — $50, 1 million [8].
Thus, through high political risks in Ukraine the volume of direct foreign investments for a year grew short on 19,5%. One of reasons the leading out of row of assets became investors, especially from a bank sector.
However, as scientists mark, Ukraine has considerable potential for foreign investors and is a perspective market, namely:
- is rich in natural resources;
- has a high level of research and development in many areas of science and technology and considerable scientific and technical potential;
- has considerable agricultural potential;
- introduces the national regime of activity for firms with direct investments, strengthening ties with the EU, WTO membership and the like [1].
Moreover important is the fact that part of the foreign investment that came to Ukraine in recent years from a number of foreign countries, especially offshore zones and other jurisdictions with preferential taxation of business, actually had a Ukrainian source. A major holder of investment capital to the real sector of the economy (in 2013, 80% of the net proceeds). At the same time increased the contributions of foreign shareholders in the form of portfolio investment (not included in FDI). It should be noted that in 2014 the net income funds in the form of equity capital totaled $ 1.2 billion, which is 2.4 times more than in 2013. Dynamics of investment in the economy of Ukraine demonstrates on 01.10.2015 my fall (table. 2) [7].
Table 2. - International investment position of Ukraine is on the end of 4 quarters of 2015 (mln. USA) [7]
Balance Change due Exchange differences, The flow for the Balance
01.10.2015 to operations revaluation capital and other changes quarter (change in General) 01.01.2016
Direct foreign investments 63 061 743 -1 643 - 900 62 161
Portfolio investments 32 623 582 -3 351 -2 769 29 854
Other investments 88 252 -1 886 -1 182 -3 068 85 184
Separately will consider position to Ukraine among other countries of the world after the index of doing business for period 2009-2015 in the cut ofhis constituents: exactly this rating is most popular among potential investors (table. 3). Attracts the special attention on itself
Table 3. - Ukraine's position i for the period 2009-21
circumstance that in the period of the protracted conflict on East and difficult economic situation in a country for 2014-2015 Ukraine was able to improve the positions, what the sub-indexes of Index of doing business) testify to [6].
the ranking index of business 15 years, based on [6]
Constituents to the index Years Change 2015/2014
2009 2010 2011 2012 2013 2014 2015
Complication of doing business, general estimation 145 147 149 152 137 112 96 ▲ 16
After sub-indexes:
- Registration of companies 128 136 118 116 50 47 76 ▼ 29
- Registering property 140 160 165 168 158 97 59 ▲ 38
- taxation 180 181 181 183 168 164 108 ▲ 56
- Connection to the mains — — 169 166 170 172 185 ▼ 13
- Contractual obligations 48 43 44 44 45 45 43 ▲ 2
- Restoring solvency 143 145 158 158 157 162 142 ▲ 20
- lending 28 30 21 23 24 13 17 ▼ 4
- Licensing system in construction 179 181 182 182 186 41 70 ▼ 29
- International trade 121 139 136 144 148 148 154 ▼ 6
- Protection of trades 142 108 108 114 127 128 109 ▲ 19
Major improvements have occurred due primarily taxes (56 positions in the ranking), registering property (38 positions), recovery of solvency of enterprises (20 positions) and, most importantly for investors, first time in four years increased investor protection index (+ 19 positions in the ranking). Most of Ukraine lost its position last year in terms of registration and obtaining building permits (- 29 positions) [10]. Thus, according to the World Bank ranking The Doing Business — 2015, Ukraine ranked 96 place, this is the record that it was less than in all the years of its independence by signing a hundred countries. The five leading countries in terms
of doing business in the world: Hong Kong, Singapore, New Zealand, US and Denmark [11].
Comparing the indexes of investment freedom and financial freedom Ukraine represents not optimal places.
Index investment freedom (in scores): Georgia — 80; Poland — 75; Turkey — 75; Russia — 25; Ukraine — 20. It is clear that numerous restrictions on withdrawal of capital and purchase of foreign currency strengthened sharply in 2014-2015, there are reasons for the low valuation.
The experts ranking note that Ukrainian legislation on investment as a whole is discriminatory.
Fig. 1. Index of investment freedom [13]
Index of financial freedom: Poland — 70; Georgia — 60; Turkey — 60; Russia — 30; Ukraine — 30. By reasons of subzero point:
- are regulator barriers for functioning of foreign financial institutes;
- it is an insufficient level of financial market development on the whole;
- it is a large stake of problem assets in the banking system.
Fig. 2. Financial Freedom Index [13]
It is also necessary to pay attention, that GDP in I quarter of 2016 comparatively with a previous quarter (taking into account a seasonal factor) presented 99,3%%, and comparatively with I by the quarter of 2015-100,1%%. It is necessary to mark in relation to indexes, on the state on in 14.06. 2016 Index PFTS grew on 0,09%%, and Ukrainian stock Index — on 1,73% [12].
Index and trading volume on the PFTS was on 06.14.2016. [8]
Volume of tenders, hrn. Index PFTS
615680074,04 221,06
Ukrainian stock index and trading volumes on the «Ukrainian Stock Exchange» by 14.06.2016 g. [8]
Volume of tenders, hrn. Index Ukrainian shares of stock
2339702,00 673,18
The main reasons due to a decline in foreign investment in Ukraine:
- non-residents investing in securities of Ukraine abroad and in Ukraine — a small amount, due to instability;
- the large number of attractive, undervalued assets abroad, including in Russia, Poland, the Czech Republic, where the stock market infrastructure much better.
Conclusions
Coming from that an investment climate for bringing in of foreign investments to Ukraine is not a comfort for investors, foremost in a short-term prospect, as a re-
sult of absence of practical motions that would provide economic freedom and defenses of interests of all participants of business processes at the clear rules of doing business.
The role of foreign investments in the economy of Ukraine is substantial, they play a considerable role support, functioning and dynamic development of economy of country. Changes that take place in quantitative correlation of investments influence on the changes of public production, employment of population, structural economic indicators and dynamics of development of different industries of national economy volume.
The main problems in the development of investment should be noted:
- imbalance framework;
- significant tax burden of the tax authorities;
- low purchasing power ofthe population ofUkraine;
- low transparency (transparency) of the privatization process;
- underdevelopment of insurance and the stock market and so on.
Measures to promote the involvement of foreign capital in the economy:
- Improve stock exchanges, commercial banks, insurance companies, investment companies and funds;
- Attracting investments in Public Private Partnership;
- Optimize the level of tax burden, stabilize tax legislation.
In addition to the above, the attraction of foreign investments possible under conditions of lowering inflation, optimize convertibility of the currency.
Also to be noted as world experience shows that the basic flow of funds strategic investors are directed not so much where established maximum favorable condi-
tions, but in countries whose economies are developing steadily and consistently on its own internal basis. If enforcement of stabilizing measures to improve the investment climate of the state and, therefore, increase the flow of foreign direct investment.
References:
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6. The official site «World Bank» [Electronic resource]. - Access: http://www.doingbusiness.org/data /exploreeconomies/ukraine
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9. UNIAN [electronic resource]. - Access: http://economics.unian.ua/
10. Financial Portal Ministry of Finance [electronic resource]. - Access: http://minfin.com.ua/markets/
11. G. Chukhai Ukraine in the ranking of global competitiveness 2015. - [electronic resource]. - Access: http://reforms.in.ua/ua/news/ukrayina-u-reytyngu-globalnoyi-konkurentospromo zhnosti-2015
12. Jaworski OA Attracting foreign investment as one of the priorities of state policy [electronic resource]. - Access: http://old.niss.gov.ua/Table/Stol15/006.htm.
13. Index of Economic Freedom: How to sell Ottolknutsya from the bottom rating Ekonomicheskie freedom -[electronic resource]. - Access: http://voxukraine.org/
Lipchenko Elena Alexeevna, Ph. D., Associate Professor of the Kursk State Agricultural Academy E-mail: [email protected]
Investment attractiveness of the enterprise in the context of financing expanded reproduction
Abstract: Investment attractiveness of enterprise is made up of the views of financial market participants
on the prospects and risks of the reproductive process. If you take a positive investment decision, the
company is able to improve production with the requirements of the emerging technological paradigm.
Therefore, the probability of successful implementation of structural changes corresponding to changes in
the market and the emergence of new values in our economic cooperation.
Keywords: investment attractiveness, reproduction, financing, modernization, structural investments.
