Экономические науки/4.Инвестиционная деятельность и фондовые биржи.

Didenko O.O.,Rassolova L.V.

Doneck National university of economic and trade  named M.I. Tugan-Baranovskiy

Investments in Ukraine.

Study of the problems of investment economy has always been the focus of economic science. This is due to the fact that investment affects the deepest foundations of economic activity, defining the process of economic growth in general. In modern terms they are the most important means of ensuring the conditions to break the current economic crisis, structural shifts in the economy, ensure technical progress, improving quality indicators of economic activity at the micro and macro levels. Activation of the investment process is one of the most effective mechanisms of social and economic transformation.

The prevailing current economic situation in Ukraine, greatly complicates the investment activities: requires the development of market relations, adequate investment vehicle, organically combining forms of private and public investment, optimize the relationship between different subjects of investment activity, development of appropriate legal and regulatory framework and other measures governing the investment process, as the level of individual firms, companies or industries, and at the level of the national economy as a whole.

Investment plays a central role in the economic process, they predetermine the overall economic growth. As a result, investment in the economy, increasing production, increasing national income, develop and go forward in the economic rivalry between the industry and enterprise in the most satisfying demand for certain goods and services. The resulting increase in national income is partially re-accumulates, there is a further increase in production, the process is repeated continuously. Thus, the investment generated by the national income as a result of its distribution, cause its own growth, reproduction. In this case, the more effective the investment, the greater the growth of national income, the greater the absolute amounts of accumulation (at a given his share), which can be re-invested in production. At a sufficiently high efficiency of investment growth in national income can provide the increase in the share savings with an absolute increase in consumption.

It would be wrong to link the growth of national income only from productive investment, although it is clear that they directly determine the increase in production capacity and output. It should be noted that this growth had a significant impact, albeit indirect, is also investments in the sphere of immaterial production, with the global trend is that the importance of further enhancing the economic potential increases.

A large proportion of investment accounted for the construction sector of the economy. It is therefore necessary to clarify the role and importance in the reproductive process of such categories as capital investment and capital construction.

Of the total amount of investments accounted for the majority of capital investment in expanded reproduction, which is the main source of national income. The magnitude of these investments, known as net investment, can be judged by the increase in fixed assets, although the exact correspondence between them for each time period can not be. Increase in fixed assets over a certain period, usually a year, calculated on the value of completed construction projects, taken at the balance sheet and capital expenditures this year are made up of funds released by banks, which are embodied in the finished and handed over after the fixed assets required to complete a certain time.

Moving investments from centralized sources in decentralized led to some loss of control of the investment process, to the spontaneous formation of individual and local programs of accumulation and reproduction, to be used for the purpose of fairly minor, even compared with the opportunities that are available to businesses. A significant part of the decentralized storage is not used because, first, outstripping a rise in price of machinery and equipment, and secondly, the lack of material resources, and thirdly, the lack of adequate interest and motivation to the rapid technological upgrading, because market mechanisms are not operating at full capacity, cooperation with energy suppliers, raw materials and components is broken, there is no reliable customers. Therefore, much of the money remains unsold, and accumulated financial resources are several times higher than the actual amount of investment. With proper market incentives it gives hope for the opportunity not only to support and promote vital investment structure, but also intensify the investment process itself.

If Ukraine does not happen financial stabilization, we eventually will be doomed to the restructuring scheme, typical of third world countries, with total submission to our economy, the economies of developed countries, with all ensuing consequences.

 The high degree of moral and physical deterioration of basic production assets requires urgent measures to stimulate investment activity, the highest and best use of all possible sources of funding capital investment.

Financing of the investments is carried out by internal and external sources. Internal sources include own funds and savings, the budget appropriation (from the federal and local budgets), as well as long-term debt (public and commercial). External sources are private foreign direct and portfolio investment and foreign loans.

There is a problem of choice between consumption today and tomorrow. The greater part made ​​today, we save up and invest, the more we will be able to consume tomorrow. On the contrary, the more resources we use today ("will pass"), the less we will have a chance of significant growth in production and higher consumption in the future. This is the main reason why the low level of savings could become a serious problem for the entire economy.

In our modern society, the net capital formation or investment is carried out by industrial or commercial enterprises, and especially corporations. If a corporation or a small business have great investment opportunities, their owners will be tempted to put back most of its revenue. Therefore, industrial savings to a large extent directly related to industrial investment.

Literature:

1.http://investments.com.ua/