SYSTEM OF INVESTMENT POLICY INSTRUMENTS AT THE LOCAL LEVEL: THEORETICAL ASPECT

  • T.V. Malyshivskyi Vasyl Stefanyk Precarpathian National University, Ministry of Education and Science of Ukraine, Department of Management and Business Administration, Shevchenka str., 57, Ivano-Frankivsk, 76010 https://orcid.org/0000-0002-9050-2308
  • V.V. Stefinin Vasyl Stefanyk Precarpathian National University, Ministry of Education and Science of Ukraine, Department of Theoretical and Applied Economics, Shevchenka str., 57, Ivano-Frankivsk, 76010 https://orcid.org/0000-0002-9115-0068
Keywords: investments, investment policy, investment attractiveness, investment policy instruments, institutional capacity of the community

Abstract

The aim of the article is to form a theoretical basis for the development of a unified system of investment policy instruments at the local level for its further use by local governments and local authorities in the process of developing and implementing local investment policy.

In the course of the research the methods of analysis, systematization, grouping, abstraction were used in order to determine the normative documents on regulating the activities of investments attraction by local governments, isolate and consider investment policy instruments at the local level.

The information base of the scientific research consisted of scientific works of domestic and foreign economists and legislative and regulatory documents on regulating the activities of local governments.

The theoretical foundations of the system of investment policy instruments at the local level have been studied. This is due to the fact that local governments differ significantly in their responsibilities and powers from both central and local authorities, and therefore need their own system of tools to create local investment attractiveness. Based on the system of investment instruments that is used or can be used at the national level, as well as taking into account the Law of Ukraine "On Local Self-Government in Ukraine" we have proposed an author's system of investment policy instruments that can be used at the local level. This system of instruments consists of instruments of direct influence (financial instruments) and indirect ones, which in turn determine the level of institutional capacity of the community to attract investment. Instruments of direct influence include tax instruments, formation of trust funds, joint financing of investment activities, holding competitions to provide funding for winners, creation of special free economic zones, etc. The tools of indirect influence include: establishing a system of communication with investors; formation and dissemination of community investment proposals; development and distribution of promotional materials for the investor (investment passport, guide for the investor, etc.) and others.

The scientific novelty of the obtained results is the creation of an author's system of investment policy instruments at the local level.

The results of the study can be used by local authorities in developing and implementing community investment policy. We believe that the use of these tools can increase the level of both the institutional capacity of the community to attract investment and the level of investment attractiveness of the community as a whole.

Author Biographies

T.V. Malyshivskyi , Vasyl Stefanyk Precarpathian National University, Ministry of Education and Science of Ukraine, Department of Management and Business Administration, Shevchenka str., 57, Ivano-Frankivsk, 76010

Postgraduate

V.V. Stefinin, Vasyl Stefanyk Precarpathian National University, Ministry of Education and Science of Ukraine, Department of Theoretical and Applied Economics, Shevchenka str., 57, Ivano-Frankivsk, 76010

Ph.D (Econ.),  associate professor

References

1. Andrusyak, N.O. “Innovation and investment tools to stimulate economic development of regions.” Visnyk Cherkasʹkoho natsionalʹnoho universytetu imeni Bohdana Khmelʹnytsʹkoho. Seriya: Ekonomichni nauky, no.1, 2019, pp. 4-10. Vernadsky national labrary of Ukraine, nbuv.gov.ua/UJRN/VchuE_2019_1_3. Accessed 21 Sept. 2021.
2. Weissman, E. Ya. “Modern instruments of public investment policy.” Investytsiyi: praktyka ta dosvid, no.4, 2014, pp. 168–171. Vernadsky national labrary of Ukraine, nbuv.gov.ua/UJRN/ipd_2014_4_34. Accessed 21 Sept. 2021.
3. Vasilchenko, S. M. “External economic growth.” Visnyk Prykarpatsʹkoho universytetu. Seriya «Ekonomika», no.13, 2018, pp. 21-25
4. Vykhor, M. V., Koval, N. V., and O. I. Shemigon, “Investment passport as an instrument of investment policy at the local and regional level”. Investytsiyi: praktyka ta dosvid, 2011, no.2, pp. 3-7. Vernadsky national labrary of Ukraine, nbuv.gov.ua/UJRN/ipd_2011_2_3. Accessed 21 Sept. 2021.
5. Hrynchyshyn, I. M. “Financial capacity of territorial communities in the context of evaluating the results of administrative and financial decentralization.” Sotsialʹno-ekonomichni problemy suchasnoho periodu Ukrayiny: zb. nauk. pr., no.5(139), 2019, pp. 26-32. DOI: 10.36818/2071-4653-2019-5-4.
6. On Local Self-Government in Ukraine. Law of Ukraine as amended on August 29, 2021. Verkhovna Rada of Ukraine, zakon.rada.gov.ua/laws/show/280/97-%D0% B2% D1% 80 # Text. Accessed 21 Sept. 2021.
7. Ignatenko, O. P. «Application of investment instruments at the local level». Investytsiyi: praktyka ta dosvid, 2019, no.5, pp. 74–79. Vernadsky national labrary of Ukraine, nbuv.gov.ua/UJRN/ipd_2019_5_14. Accessed 21 Sept. 2021.
8. Koval, N. V. «Management of investment attractiveness of OTG: tools and features of their application». Finansova polityka rehionalʹnoho rozvytku: vitchyznyanyy ta zarubizhnyy dosvid: materialy mizhnar. nauk.-prakt. konf. z nahody 25-richchya zasnuvannya kafedry finansiv i kredytu, 10-11 zhovtnya 2019 r., m. Zhytomyr, Zhytomyr: ZhNAEU, 2019, pp. 102–106.
9. Koval, N. V. “Formation and implementation of regional investment policy in modern conditions.” Suchasni tendentsiyi rozvytku rehioniv ta haluzey narodnoho hospodarstva : monohrafiya, Dnipro: Porohy, 2018, pp. 46–57.
10. Leschuk, G. V. “Information component in the system of investment support for the development of regional infrastructure.” Materialy Mizhnarodnoyi naukovo-praktychnoyi konferentsiyi «Stratehichni oriyentyry rozvytku ekonomiky Ukrayiny» (6-7 zhovtnya 2017 r), 2017, pp. 95-98
11. Leschuk, G. V. “Continuum of investment attraction in the development of united territorial communities.” Business navigator, no.6.1-2(56), 2020, pp. 67-72.
12. Malyshivsky, T. V., Stefinin, V. V. “Attracting foreign capital as a factor in ensuring economic growth.” Sotsialʹno-ekonomichni problemy suchasnoho periodu Ukrayiny, no.5(145), 2020, pp. 34-41. DOI: 10.36818/2071-4653-2020-5-7.
13. Tax Code of Ukraine. Verkhovna Rada of Ukraine, zakon.rada.gov.ua/laws/show/2755-17#Text Accessed 21 Sept. 2021.
14. Recommendations of the Ministry of Economic Development and Trade of Ukraine on standards for attracting and supporting investors at the local and regional level, cutt.ly/hnjXPTY Accessed 21 Sept. 2021.
15. Rudenko, V. V. “Foreign experience in the formation and implementation of investment policy of the state». Accounting and finance, no.1, 2014, pp. 96–101. Vernadsky national labrary of Ukraine, nbuv.gov.ua/UJRN/Oif_apk_2014_1_17. Accessed 21 Sept. 2021.
16. Hymych O. V. “Investment policy instruments.” Sotsialʹno-ekonomichni aspekty rozvytku ekonomiky ta upravlinnya: zbirnyk materialiv mizhnarodnoyi naukovo-praktychnoyi internet-konferentsiyi 16–17 sichnya 2013 r., Dnipropetrovsʹk, Dnipropetrovsk: "Gerda", 2013, pp. 18-21.
17. Shevchenko, N. I. “Modern instruments of public investment policy.” Investytsiyi: praktyka ta dosvid, no. 24, 2011, pp. 66–69. Vernadsky national labrary of Ukraine, nbuv.gov.ua/UJRN/ipd_2011_24_18. Accessed 21 Sept. 2021.
18. Lerner J. «The future of public efforts to boost entrepreneurship and venture capital». Small Business Economics, no.35, 2010, pp. 255-264. DOI: 10.1007/s11187-010-9298-z
Published
2021-11-30