Prof. Solianyk Liudmyla
National Mining University, Ukraine
the international capital movement as a
factor of influence on innovative development tendency of ukraine’s economy and
its integration into the world economy
The international capital movement
in the world economy space is the most dynamic form of the economic
globalization, its essential motive power which promotes the development of
international political alliances, social, demographic and economic improvement
in the economy of particular countries and their groups. The analysis of the
world capital movement condition and investment processes gives evidence of the
interrelation between the international investment development and economy
globalization. The international capital movement acceleration, first of all in
the form of the international investment, influences the scale and tendency of structural
breaks within particular countries and regions, promotes considerable increase
in economic development efficiency of most countries of the world, facilitating
the countries’ access to markets and financial resources, effective corporate
management experience. This is testified by increase in the world trading
volume during the past 50 years by 17 times (and the world GDP by 6 times). The
capital worth about 20 trillion USA dollars functions within the present-day
international securities market. The annual volume of international credits
makes up to 15 trillion of the USA dollars and that of direct international
investments makes up to 500 billion of the USA dollars [1] which testifies the actual scale of the international capital movement
(regardless the present financial economic crisis).
Ukraine takes a minor place among the main European
countries importing the international capital. The topicality of the issue concerning Ukraine within the
international investment space at the present stage of its economic development
has drawn attention of the following domestic scientists: A. Ignatenko, L.
Ryneiska, P.Sabluk, G. Kharlamov. Further research of the influence of the
determiners of the international capital movement process on the tendencies of
Ukraine’s economic development is the part of the general problem to be solved.
The outlined issues make up only a small part of the urgent problems as to
identifying the tendencies of Ukraine’s development in the context of the
international capital movement intensification; these problems require a
detailed analysis and research within particular scientific works.
The
process of the international capital movement is increasing and becoming more
organized defining the structure of the current world economy and turning
financial markets into the most important factor of the world economy
development. Thus, in 2012
the total volume of the world capital market almost achieved the volume of the
world GDP [1].Ukraine possesses
rather great industrial potential in spite of its ineffective infrastructure
and out-of-date production assets. Having considerable intellectual and
scientific and technical potential, Ukraine demonstrates unsatisfactory rates
of innovation development and low effectiveness of implementing innovation
potential which calls for searching for efficient mechanisms which would
promote the development of the national innovative system. Lack of economic
motivation, imperfect legislation base, unstable financial provision, which is
particularly tangible under conditions of the increasing world financial
crisis, have a negative effect on innovative activity. The role of foreign investors in financing
innovative activity of Ukraine’s industrial enterprises has increased in recent
years. This is conditioned by limitation of their own capital and necessity to
attract foreign capital to the industrial sector; the foreign capital is mostly
used as direct foreign investments which recently have been the most stable
factors to support Ukraine’s payment balance and have promoted the integration
of the national economy into the world economy. There is no reasonable
alternative to the process of Ukraine’s integration into the world capital
movement, to the European economic space. European integration and the international capital movement form
developed countries, namely European ones, influence the increase of Ukrainian
economy. But it is important to take into consideration negative factors of the international capital movement which can
cause certain threats for the national economy. There is a risk concerning the
integration of Ukraine’s industry into not very profitable branches (namely
metallurgy, chemical industry); on the other hand, incoming foreign investments
are not always accompanied by implementing modern high technologies and
increasing domestic enterprises’ competitiveness.
To avoid negative consequences, the
European integration in the context of globalization tendencies should be
gradual and reasonable, considering all industrial and financial risks which
appear in the process of the international capital movement. The first and
foremost task is to work out financial mechanisms to regulate the international
capital movement towards strengthening its positive effect on the economic
development and innovative renewal of Ukraine’s economy. It is necessary to
develop a coordinated system of managing innovative processes at the state
level it is impossible to distribute financial flows (both Ukrainian and
foreign ones) efficiently directing them to innovative technologies and modernization of production facilities of
domestic enterprises enhancing the positions of Ukraine’s industrial production
in the world market. In the context of the world current economic tendencies
and Ukraine’s integration connection development, it is essential to provide
membership in influential international organizations or integration grouping
to defend their own interests and to promote dynamic economic development. It
is also necessary to create domestic
transnational corporations or to participate partially in foreign transnational
corporations along with active stimulating of intellectual investments.
We
should also create conditions for increasing competitiveness of Ukraine’s stock
market and efficient implementation of financial tools with its further civilized integration into the international
capital markets. It is important to activate domestic enterprises’ entering the
world stock markets by means of the IPO as the main factor Ukraine’s
integration into the world economy and innovative development of the state’s
economy.
References:
1.
WorldBank. Data profile // [Electronic resource]. - Access mode: URL://http://ddp-ext.
worldbank. org/ext/ddpreports/ ViewSharedReport