Open AccessInstitutional Environment as a Determinant of Efficiency of Industrial Development of Ukraine
Author(s) -
N. Grazhevska,
Аліна Ходжаян,
Andrii Zavazhenko
Publication year - 2020
Publication title -
vìsnik. ekonomìka/vìsnik kiïvsʹkogo nacìonalʹnogo unìversitetu ìmenì tarasa ševčenka. serìâ ekonomìka
Language(s) - English
Resource type - Journals
eISSN - 2079-908X
pISSN - 1728-2667
DOI - 10.17721/1728-2667.2020/210-3/1
Subject(s) - deindustrialization , foreign direct investment , economics , modernization theory , fixed asset , economic system , investment (military) , industrial production , production (economics) , depreciation (economics) , business , shadow (psychology) , economy , market economy , capital formation , economic growth , human capital , macroeconomics , psychology , politics , financial capital , political science , law , psychotherapist
The authors proved that contrary to the global trends of development of science-intensive neo-industrial economy in Ukraine there is deindustrialization of the economy associated with outpacing growth of production and export of raw materials with a low level of technological processing and added value. The article examines the main factors of the deindustrialization of Ukraine’s economy, in particular, a significant degree of depreciation of fixed assets of industrial enterprises and production infrastructure, insufficient volume and unsatisfactory structure of capital investment to restore worn-out fixed capital, negative dynamics of foreign direct investment in the spheres of national economy such as innovations, etc. The authors also highlighted and analyzed the institutional factors influencing the industrial development of Ukraine, namely: the “presence” of the state in the economy, corruption and the shadow economy. The negative impact of the institutional environment on the innovative modernization of the national industrial sector was confirmed with the help of economic and mathematical modelling. The main directions of intensification of the state ‘s activity to overcome the institutional dysfunctions and traps formed during the period of market reform of the national economy are substantiated.