INSTITUTIONAL SUPPORT OF INVESTMENT CLIMATE FORMATION IN UKRAINIAN BLACK SEA REGIONS


  • O.I. Laiko
  • Z.V. Chechovich
  • Zh.H. Naumenko
Keywords: Investment climate, institutional levers of investment climate formation, investment climate of the Ukrainian Black Sea region

Abstract

It is analyzed the essence and structure of economic category "investment climate" in view of modern visions of investors and according to the requirements of national and international legislation. A conceptual approach to the improving of favorable investment climate, on the example of Ukrainian Black Sea, through tax levers of regulation in a decentralized budgets areas is designed. It is proposed to introduce the norm of the exemption from profit tax of a financial result that is invested in the economic activity of a domestic entity for the implementation of an investment project, but onle when provided wage level of employees in this project is at least twice more than the amount of the average wage by such type of economic activity where the project is implemented or should be. The implementation of this proposal will require the amendment of Tax Code of Ukraine and as a result will be a powerful tool for stimulating of the development of investment activity in the community without the need for approval of the special legal status of individual territories. This approach corresponds to the principle of observance of the general economic conditions and rules of the conducting of economic activity on the conditions of equal competitive advantages and opportunities. Also, the method of this tax exemption will not only stimulate the growth of wage payments, which will increase social standards in the territories, but will allow to implement a project approach to the stimulating of investment activity, when the object of the benefits is a specific investment project and not an economic entity. The proposed in the article approach is characterized by economic efficiency and is determined to minimize the political and other risks that would occur when using traditional instruments – the introducing of special modes of business activity conduction.

Author Biographies

O.I. Laiko

Dr.Sc. (Economics),
Institute Of Market Problems And Economic&Ecological Research of the
National Academy Of Sciences Of Ukraine
Frantsuzskiy Boulevard, 29, Odesa, Ukraine

Z.V. Chechovich

Institute Of Market Problems And Economic&Ecological Research of the
National Academy Of Sciences Of Ukraine
Frantsuzskiy Boulevard, 29, Odesa, Ukraine

Zh.H. Naumenko

Institute Of Market Problems And Economic&Ecological Research of the
National Academy Of Sciences Of Ukraine
Frantsuzskiy Boulevard, 29, Odesa, Ukraine

References

1. Zakon Ukrainy «Pro spetsialnu (vilnu) ekonomichnu zonu "Porto-franko" na terytorii Odeskoho morskoho torhovelnoho port» vid 31.03.2005 № 1607-14 [The Law of Ukraine «On the Special (Free) Economic Zone 'Porto-Franko' in the Territory of Odesa Trade Seaport» from 31.03.2005 № 1607-14]. (2005, 31 March). Vidomosti Verkhovnoi Rady Ukrainy – Bulletin of Verkhovna Rada, 26, 208[in Ukrainian].
2. Zakon Ukrainy «Pro spetsialnu ekonomichnu zonu "Reni"» vid 31.03.2005 № 1605-14 [The Law of Ukraine « On the special economic zone “Reni”» from 31.03.2005 № 1605-14]. (2005, 31 March). Vidomosti Verkhovnoi Rady Ukrainy – Bulletin of Verkhovna Rada, 25, 196 [in Ukrainian].
3. Zakon Ukrainy «Pro dobrovilne ob’iednannia terytorialnykh hromad» vid 05.02.2015 № 157–19. (2015, 05 February). Vidomosti Verkhovnoi Rady Ukrainy – Bulletin of Verkhovna Rada, 13, 91 [in Ukrainian].
4. Laiko, O.I. Chechowich, Z.V. (2016) Mekhanizm pokrashchennia investytsiinoho klimatu rehionu (na prykladi Ukrainskoho Prychornomor’ia) [The mechanism of improving the investment climate in the region (example of Ukrainian Black Sea)] Ekonomichni Innovatsii –Economic innovation, № 61, 203–213 [in Ukrainian].
5. Proekt Zakonu Pro vnesennia zmin do Konstytutsii Ukrainy (shchodo detsentralizatsii vlady) vid 01.07.2015 № 1-1/458. (2015, 01 July). zakon.rada.gov.ua. Retrieved from
http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=55812 [in Ukrainian].
6. Konventsiia pro poriadok vyrishennia investytsiinykh sporiv mizh derzhavamy ta inozemnymy osobamy: konventsiia vid 18.05.1965 (Ratyfikovano Zakonom № 1547-III vid 16.03.2000) [Convention on the Settlement of Investment Disputes between States and Nationals of other States. Ratified by Law of Ukraine № 1547-III of 16.03.2000] (2000, 16 March). zakon.rada.gov.ua. Retrieved from http://zakon2.rada.gov.ua/laws/show/995_060 [in Ukrainian].
7. Investing in Ukraine PricewaterhouseCoopers [Elektronny`j resurs]. – Retrieved from http://www.pwc.com/ua/en/publications/publication001.html [in English].
8. Investment Climate. [Elektronny`j resurs]. – Retrieved from http://www.worldbank.org/en/topic/competitiveness/brief/investment–climate [in English].
9. Reznik, N.P. (2008). Chynnyky formuvannia investytsiinoho klimatu [Determinants of investment climate]. Proceedings from Investment priorities for the globalization era: the impact on the national economy and private business’ 2008: Mizhnarodna naukovo-praktychna konferentsiia (14-15 fevralia 2008 h.) – International Scientific and Practical Conference. (Vol.1, pp. 25-27). Dnipropetrovsk [in Ukrainian].
10. Zahorianska, O.L. (2008). Investytsiinyi klimat i chynnyky, shcho yoho formuiut [Investment climate and the factors that shape it] Visnyk Kremenchutskoho natsionalnoho universytetu – Transactions of Kremenchuk Mykhailo Ostrohradskyi National University, 1, 124-126 [in Ukrainian].
11. Monastyrs'kyj, H.L. (2010). Modernizatsijna paradyhma upravlinnia ekonomichnym rozvytkom terytorial'nykh spil'not bazovoho rivnia [Management's modernization paradigm of economic development of local communities baseline]. Ternopil': Ekonomichna dumka, 464 [in Ukrainian].
12. Ukraine's investment climate survey(2016). U.S.-Ukraine Business Council (USUBC). usubc.org. Retrieved from http://www.usubc.org/site/recent-news/ukraine--039-s-investment-climate-survey [in English].
13. LINK. [Elektronny`j resurs]. – Retrieved from http://www.chemonics.com/OurWork/OurProjects/Pages/Ukraine–Local–Investment–and–National– Competitiveness.aspx [in English].
14. Analitychnyi zvit pro stan i perspektyvy rozvytku maloho ta serednoho pidpryiemnytstva v Ukraini (2013). [Analytical report on the status and prospects of development of small and average business in Ukraine]. Derzhavna sluzhba Ukrainy z pytan rehuliatornoi polityky ta rozvytku pidpryiemnytstva – The State Service of Ukraine for Regulatory Policy and Entrepreneurship Development, 55 р. Retrieved from http://www.dkrp. gov.ua/files/8cd09.docx [in Ukrainian].
15. The International Property Rights Index (2016). Countries. Eastern Europe And Central Asia. internationalpropertyrightsindex.org. Retrieved from http://internationalpropertyrightsindex.org/countries? f=&o=&r=CEECA [in English].
16. Blahopryiatnost uslovyi vedenyia byznesa. Sozdanye predpryiatyi. Ukrayna [Ease of Doing Business. Starting a Business. Ukraine]. (2017). doingbusiness.org. Retrieved from http://russian.doingbusiness.org/data/exploreeconomies/ukraine#starting–a–business [in Russian].
17. Ease of Doing Business. Paying Taxes. Ukraine (2017). doingbusiness.org. Retrieved from http://www.doingbusiness.org/data/exploreeconomies/ukraine#paying-taxes [in English].
18. Anality`chni dani, otry`mani vid Odes`koyi derzhavnoyi oblasnoyi administraciyi [in Ukrainian].
19. Odeska miska rada: of. sait mista [Odessa Сity Сouncil]. omr.gov.ua. Retrieved from http://omr.gov.ua/ua/ [in Ukrainian].
20. Ocinka bezrobittya v yevroregioni Nyzhnij Dunaj. Derzhavna sluzhba zajnyatosti. Retrieved from http://www.dcz.gov.ua/control/uk/ publish/article;jsessionid=74A599439EC5930088A52F15A4504E56?art_i d=204989&cat_id=364661[in Ukrainian].
21. Baranetskyi, T. (2016) Biudzhety obiednanykh hromad Lvivshchyny: novi vyklyky ta mozhlyvosti: analitychne doslidzhennia [The budgets of unified communities of Lviv region: challenges and opportunities]. dialog.lviv.ua. Retrieved from https://docs.google.com/viewerng/viewer?url= http://dialog.lviv.ua/wp-content/uploads/2016/06/Byudzheti-OTG.pdf&hl=uk [in Ukrainian].
22. Podatkovyi kodeks Ukrainy: Zakon Ukrainy vid 02.12.2010 № 2755-VI [Tax Code of Ukraine from 02.12.2010 № 2755-VI]. (2010, 02 December). Vidomosti Verkhovnoi Rady Ukrainy – Bulletin of Verkhovna Rada, 13-14, 15-16, 17, 112 [in Ukrainian].
23. Laiko, O.I. (2014). Transformatsiini protsesy v investytsiinii systemi ekonomiky Ukrainy [Transformation processes in Ukrainian Economi’es Investment System]. Odesa: IMPEERNASU [in Ukrainian].
Published
2017-04-24
How to Cite
Laiko, O., Chechovich, Z., & Naumenko, Z. (2017). INSTITUTIONAL SUPPORT OF INVESTMENT CLIMATE FORMATION IN UKRAINIAN BLACK SEA REGIONS. Economic Innovations, 19(1(63), 145-154. https://doi.org/https://doi.org/10.31520/ei.2017.19.1(63).145-154