Українською | English


УДК 336.1.


Z. Z. Romanchuk,

postgraduate student, Ivan Franko National University of Lviv




З. З. Романчук,

Здобувач, ЛНУ імені Івана Франка


Проблеми формування ефективної системи стимулювання інвестицій на державному рівні


The role and features of the mechanism of state support of investment projects in the economic system of the country are discussed in the article. Also the efficiency of budget support investment projects in Ukraine is analyzed. The recommendations for improving the mechanism of budget support investment projects are proposed in the conclusions.


У статті розглянуто роль і особливості механізму державної підтримки інвестиційних проектів в економічній системі країни. Аналізується ефективність бюджетної підтримки інвестиційних проектів в Україні. У висновках запропоновані рекомендації щодо вдосконалення механізму бюджетної підтримки інвестиційних проектів.


Key words: mechanism, state support, the mechanism of state support, financial mechanism, energy dependence, alternative energy, budget support investment projects, foreign direct investment.


Ключові слова. Механізм, державна підтримка, механізм державної підтримки, фінансовий механізм, енергетична залежність, альтернативна енергетика, бюджетна підтримка інвестиційних проектів, прямі іноземні інвестицій.



Problem  setting. With the formation of the social market economy oriented Ukraine there is a need for radical restructuring of the economic system. It is accompanied by a lingering economic crisis, costly type of reproduction of gross domestic product, a high proportion of materials, energy and capital cost of products or services in all spheres and sectors of the economy. The domestic economy of Ukraine contains a small percentage of entities with a complete production cycle, innovative type of activity and a high level of economic security at the global level.

Ukraine's economy can not only change in the legal field of the entity. It must acquire new economic characteristics of quality management that will ensure a high level of economic security, competitiveness and stimulate the development of scientific and technological progress. All tasks of building the economic system of the country can be done by creating an effective system of investment and the formation of modern investment policy at the state level. Strategically important is to develop high quality investment flows. That is why the study of the problem is urgent, necessary and timely.

Analysis of recent researches and publications. The definition of investment as the driving force of the economic system are presented in the writings of Adam Smith, D. Rikardo, Marks, Dzh. Keyns, J. Schumpeter, M. Tuhan-Baranovskyy, P. Samuelson and other scientists. These are general theoretical nature and the foundation for building an effective system of state stimulation of investment activities. The writings of  U. Sharp, Dzh. Beyli, L. Hitman, V. Berens considered mainly a mechanism of implementation and management of financial investments. Problems of an effective system of investment are explored by leading ukrainian scientists – V.M. Heyets, M.I. Krupka, D.V. Vankovych, I.S. Gutsal and others.

It is expedient to note that despite the high level of scientific substantiation of the place and role of investment in system development of the economic system of the country, there is no integrated system of research investment processes in the context of globalization and reform of the economic system of Ukraine at the state level and quality of public investment management and budget support innovative investment projects enhance the economic security of the economy.

The purpose of the article. The main purpose of this research is to identify the major factors in the formation of effective system of investment incentives at the state level, the development of effective and relevant recommendations on the implementation of the mechanism of state support of investment projects in the economic system of Ukraine.

Achieve the mentioned goal setting and facilitates the following tasks:
1) to analyze the theoretical and methodological approaches to determining the nature of the mechanism of state support of investment projects;

2) explain the place, role and functions of the mechanism of state support of investment projects in the economic system;

3) to analyze the effectiveness of budget support investment processes in Ukraine as an integral part of the state investment policy.

Statement of the main research material. In order to ensure the efficiency of investment by the state formed a certain system or mechanism of investment. Understanding the essence of the mechanism controversial among economists – researchers and which leads to ambiguous understanding of the structure and set of elements of this economic phenomenon.

Every management system is driven by some mechanism. Scientists, dealing with development management system in terms of market, share almost functional matrix concept – the target structure management economic system of the country, including government support of investment processes. So, B.A. Rayzberh and R.A. Fathudynov, who view the system, structure, goals and objectives of management, indicate that systems are conceived to achieve the objectives under these goals based structure and system endowed with certain functions that address target problem. The concept of "mechanism" has deep historical roots, his research involved many scientists. Including advisable to call L.I. Abalkin, A.S. Gusarov, P.G. Bunich, M. Osipov, B.A. Rayzberg, V.S. Mocherny and others. The control system economic system includes various mechanisms, including the investment as the driving element, ensuring the effective functioning of the economy in the long run [4].

The term "mechanism" is borrowed from the natural sciences (mechanics), where it is understood as a system of parts, assemblies and components, which are used to transmit different forms of movement.

In the economic literature there are two approaches to the understanding of the term, namely:

- the mechanism – an organization adjustment of Economy and Finance;

- the mechanism – a tool for implementing the financial policy of the company and the state;

- the mechanism – a tool of foreign influence and state on the economy and society [4].

It is advisable to note that the above-mentioned determination mechanism as an economic concept complement each other and can be integrated into a definition of "mechanism as an economic concept is the process of management of the country's economic system at the micro- and macro levels through a variety of leverage its current and future operation”.

The mechanism of state support of investment projects is part of the financial-credit mechanism of the country. Because of the ambiguity, from an economic point of view, understanding the concepts and mechanisms discrepancies in the understanding of the financial and credit mechanisms, their segments and elements, and therefore no systemic vision of the mechanism of state support of investment projects. Since the financial mechanism according  to Vasylyk O.D. is a set of forms and methods of creating and using funds of financial resources to ensure the needs of various government agencies, economic entities and population. This interpretation is more adapted to public finance credit relationships that do not carry the weight of high priority or implementing investment relationship in the functioning of state institutions. Nicholskiy P. treats financial mechanism as a set of forms, methods and tools of the plan of financial relationships related to financial planning, creation, distribution and use of income, accumulation funds. The author, in our view, considering the financial mechanism as adaptive on public and private spheres of activity and does not indicate the characteristics and differences between levels of government investment relations in the economic system [2].

S. Ogorodnyk and V. Fedosov transform the concept of the financial mechanism of financial - credit that is due to look at the loan category as part of the economic category of "finance", but forms of the above mechanisms nearly identical, the difference is only in the definition structure that the latter includes such components as financial security and financial regulation. Not enough attention is paid to the investment management processes are within the scope of influence of the financial mechanism [6].

In our opinion, to understand the essence of the mechanism of state support of investment projects as an integral part of the financial mechanism, should reveal the nature of investment and economic characteristics make up the structure of the mechanism.

The essence of investment expresses the term derived from the Latin word "invest" that means directly "invest." In economic literature, the concept of investment is treated ambiguously. We believe that investment in the economic category are financial relationships between individuals and legal entities and the state, which are formed in the investment of temporarily free financial resources in order to preserve their value and increase, stimulating the growth of profit entities, achieving increasing levels of social and economic system cover all areas of public goods.

Investments act as real and financial. Real investments reflect economic relations between business investment and are in demand for investment goods and supply to provide capital growth, increase profits and implementing other purposes. Financial investments expressing financial relationships between the subjects of investment activity and are in demand and supply of securities and other capital market instruments for profit [4].

Therefore, we believe that the mechanism of budget support investment projects is a set of methods and tools of financial management investment process in the country, implemented in public administration and fixed in the budget as the main financial document of the country for the current year.

Formation mechanism of budget support investment projects at the state level provides a number of priority areas of its operation, namely:

ensuring economic security, which includes a subsystem of financial and investment security. That is creating a positive investment climate, stimulating the growth of investments in the economic system (the obvious realization of investment entities, implied investments in the financial sector of the country). This area should be implemented by government grants budget programs and direct investment budgets of state and local level;

funding projects to reduce energy intensity of production processes as the basis for competitive entities, increase energy sovereignty of the Ukrainian economy as a whole;

the creation of budget investment projects that stimulate the reduction of material public good by encouraging the growth of quality of scientific and technological progress;

support for investment projects reduce capital intensity of production processes. That incentives for businesses to use innovative technologies business to develop high-quality optimization of expenses on production or services, generate favorable financial infrastructure.

The mechanism of  budget support investment projects consists of the explicit and implicit methods for stimulating investment processes. Explicit methods a legislated budget investment projects, government grants and accumulated funds of investment resources that are in the range of tasks as budget, investment policies and economic security. Implicit methods – a fiscal investment incentives. Since taxes are a tool for filling the budget structure and regulate business economic system, they act by "implicit" mechanism of budget support investment projects. This trend does not encourage investment involves direct government intervention in the investment processes of the country, the creation of a public good.

The main indicator of the efficiency of the above-mentioned mechanism is foreign direct investment. After all, budget support investment projects creates a precedent in the investment market, establish a system of guarantees for investors, forms the "foundation" for the development of the investment environment in any sphere of life of the country.

Net surge of foreign direct investment in Ukraine in 2015 amounted to 43 371 mln. USD (as of 31.12.2015), that is on 2 545 million USD less than in 2014  (45 916 million USD). These are statistics of the State Statistics Committee [7].

At the end of 2015 the main investors Ukraine are countries such as Cyprus – 11744,9 mln. USD, Netherlands – 5610,7 mln. USD, Germany - 5414,3 mln. USD, Austria – 2402,4 mln. USD, UK – 1852,5 mln. USD, British Virgin Islands – 1798,9 mln. USD, France – 1528,1 mln. USD, Switzerland – 1364,2 mln. USD. These countries account for over 73% of the total direct investment [7].

Foreign direct investment - the most demanded form of capital to emerging economies, as it allows us to implement large projects. Also coming to the country new technologies, new corporate governance practices, thus enhancing not only the competitiveness but also economic security.

Here is the schedule of direct foreign investment in Ukraine in recent years. As you can see – no patterns, no regularity. This indicates a lack of effective functioning of the fiscal stimulus investment projects and investment policy ineffectiveness of Ukraine (Picture 1).


Pic. 1. Dynamics of foreign direct investment in Ukraine for 2005 - 2015

Source: Compiled by the author according to the State Statistics Committee [7]


Thus, at the state level is not created favorable conditions for investment projects, there is no budget support for investment projects and not subject formed joint co-investment of state structures with the private sector of economy.

In our opinion, priority and strategically important for Ukraine is to ensure energy sovereignty economic system, reducing energy intensity of production processes and the diversification of energy sources.

Energy Strategy of Ukraine till 2030 provides for the reduction of imports of primary energy in the energy balance of the country for more than 40%. This is to be achieved through energy efficiency, reduce natural gas consumption by more than 30% and the use of alternative energy sources.

In developed countries, energy security is solved by creating investment projects at national level. It can not only reduce the energy intensity of production, ensure energy security, but also give impetus to the development of undertakings working in innovative energy industries. World’s renewable energy is developing very actively. The confirmation of this is the fact that the share renewable energy sources account for more than half of new installed capacity in Europe and the United States. In addition, investments in this sector in the world amounted to 162 billion USD. Projected global financial experts in the global alternative energy industry to 2035 will invest about 5.7 trillion USD. And the European Union as early as 2050 fully switch to alternative energy sources. By 2020 the European Union intend to transfer to alternative sources of traditional energy 20%. Although today the situation is quite optimistic. In general, the energy balance is the proportion of alternative energy: in Germany and Denmark – more than 12%, Austria and Sweden – 24%, Finland – 19%, Portugal – 17.5%, Italy and Spain – over 10%, the UK, France, Netherlands and Belgium – over 7%. In addition, the largest contribution to the production of alternative electricity makes hydropower (57.7%  of all renewable energy sources), second and third places – wind energy (20.9%) and biomass (19%) [1].

With the economic and security instability in the international arena there is a need to ensure energy security of Ukraine. Resolving this issue is one of the most important tasks at the state level. It is advisable to note that the European Commission's energy strategy to 2020 defines the following priorities in energy security:

- Improving technology exploration, production and consumption dug fuel;

- The introduction of energy saving technologies and energy efficiency; determining energy policy; technology development and use of alternative sources of consumer protection.

In terms of catastrophic Ukraine's energy dependence on energy supplies and the rising cost of dynamic energy, energy intensive Ukrainian economy suffers significant losses, does not develop properly and gets poor economic results.

The development of renewable energy requires large investments, as large-scale energy projects can be implemented only with government support. In 2012 total global investment in the development of renewable energy and fuel amounted to 244 billion USD, indicating the viability and priority investment in energy future. In total 6.5% of world electricity produced using renewable energy sources such as wind, solar, biomass and waste, geothermal energy, marine and melt hydrotechnologies compared with that in 2011 the share of renewable energy reached 5,7%. Yes, China and the United States in 2012 invested in the development of alternative energy 102.6 billion USD, which is 42% of total investments in the world.

One of the world leaders in the use of alternative energy is Germany, where 7% of the total energy consumed is produced from renewable energy sources. One reason for this is a deliberate state policy on the development of alternative energy. In Sweden, the geothermal system as a means of heating premises is an integral part of a newly erected buildings. So nowadays more than 300 thousand geothermal systems are operated by. In Finland, geothermal systems are equipped with 12 thousand homes.

Ukraine has great potential available of an alternative energy, which is more than 50% of total energy consumption in Ukraine nowadays and 30% of energy consumption in 2030, and the share of energy extracted by alternative today is about 3%. Global trends are characterized by energy development policies of developed countries to reduce dependence on high-cost organic energy sources and increasing the share of renewable energy in the energy balance. In Ukraine today there is no project in the field of renewable energy or energy efficiency, which would not return invested investment funds [3].

The mechanism of budget support of ukrainian investment projects, in our opinion, should use all possible methods and instruments to ensure energy security, reduce energy intensity of production and development of scientific and technological progress in this field.

State authorities need to work in the following areas:

- to lay in the budgets of all levels of investment projects of renewable energy sources for personal use physical, legal entities and state agencies;

- to create projects co-investment projects reducing energy intensity of Ukraine's economy as a whole;

- to encourage investment in the production of innovative energy technologies and products;

- to develop grants system of scientific and technical progress in the field of energy and to guarantee further investments in innovative results obtained;

- to conduct a systematic investment policy through its synergy with the tax policy of the country in the field of energy security and energy intensity of the economy. That is, to provide tax holidays and special tax status for investors and business entities operating in innovative energy projects.

Conclusions. Ukrainian social character market economy requires innovative management techniques that will solve economic entities and state authorities tasks in the areas of economic security, improve the competitiveness and growth of qualitative and quantitative performance indicators. The mechanism of budget support of investment projects is necessary for the effective and efficient management of innovation, especially in energy sovereignty, which is the main indicator of the economy's ability to develop and improve the quality of its structure. Stimulating investment in the energy sector, in our opinion, is a priority of Ukraine. It will allow individuals, legal entities and state form effective economic environment, which in turn will guarantee solidity, strength and sovereignty of Ukraine as a state in the international political and economic arenas.



1. State Agency for Investment and National Projects of Ukraine (2012), “Alternative Future of Ukraine” The website of the State Agency for Investment and National Projects of Ukraine, available at: (Accessed 20 July 2016).

2. Vasylyk, O. (2000), Teoriia finansiv [Theory of Finance], NIOS, Kyiv, Ukraine.

3. The Verkhovna Rada of Ukraine (2013), “Energy Strategy of Ukraine until 2030”, available at: (Accessed 20 July 2016).

4. Krupka, M. (2001), Finansovo-kredytnyj mekhanizm innovatsijnoho rozvytku ekonomiky Ukrainy [Financial and credit mechanism of innovation development of economy of Ukraine], Vyd. tsentr LNU imeni Ivana Franka, Lviv, Ukraine.

5. Palyvoda, K. (2009), “Capital investment: financial and economic nature and manifestations”, Bankivs'ka sprava, vol. 3, pp. 46-55.

6. Yuhymenko, P. Fedosov, V. and Lazebnyk, L. (2010), Teoriia finansiv [Theory of Finance], Tsentr uchbovoi literatury, Kyiv, Ukraine.

7. State Statistics Service of Ukraine (2016), available at: (Accessed 20 July 2016).



1. Альтернативне майбутнє України // Веб-сайт Державного агентства з інвестицій та управління національними проектами України, 2012 р. –[Електронний ресурс]. – Режим доступу:

2. Василик О.Д. Теорія фінансів/О.Д.Василик/: Підручник. - К.: НІОС. - 2000. - 416 с.

3. Енергетична стратегія України на період до 2030 року. – [Електронний ресурс]. Режим доступу:

4. Крупка М.І. Фінансово-кредитний механізм інноваційного розвитку економіки України / М.І. Крупка // – Львів: Вид. центр ЛНУ імені Івана Франка, 2001. – 608 с.

5. Паливода К.В. Капітальні інвестиції: фінансово-економічна сутність та форми прояву / Паливода К.В. // Банківська справа.- 2009.- № 3.- С. 46-55.

6. Юхименко П.І., Федосов В.М., Лазебник Л.Л. та ін. Теорія фінансів: Підручник./ П.І.Юхименко, В.М.Федосов, Л.Л.Лазебник / - К.: Центр учбової літератури, 2010. – 576 с.

7. Офіційний веб-сайт Державного комітету статистики України. – Режим доступу:


Стаття надійшла до редакції 19.08.2016 р


bigmir)net TOP 100

ТОВ "ДКС Центр"