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Institutional support for building the investment potential of united communities in rural areas
The purpose of this article is to deepen the theoretical foundations and scientifcally substantiate approaches to the formation in the conditions of open economy of a perfect investment institutional environment of rural areas. The article has used systematic and evolutionary approaches requiring a hierarchy of essential understanding of a perfect institutional environment and provide a whole research with an identifcation of various characteristics, direct and feedback relationships and dependencies that arise in the implementation of rural investment policy in Ukraine.
The essence of the study is to determine the impact of the level of institutional environment perfection of investment attractiveness of rural areas in Ukraine. The practical content has been determined by the fact that theoretical and methodological bases, conclusions, scientifc and practical recommendations form the scientifc basis for the development of a new and a whole concept of national investment policy development at the regional level in Ukraine, taking into account the integration and world economic globalization processes.
It has been substantiated that the institutional component is an important component of investment attractiveness for rural areas except an economic one. Research has proved that the formation of a perfect investment institutional environment changes the basic principles of economic interactions, makes them equally attainable for all participants of investment projects, gives the opportunity to reconcile the interests of the entities of the formal and informal sectors and provide them with motivational incentives for innovation-oriented and environmentally responsible country.
It has been concluded that the ability of a perfect institutional investment environment to direct an investment potential to the improving of well-being, innovations and investing in people requires the state to determine these tasks as critical of economic growth of rural areas in order to increase the inhabitants’ wealth. It has been substantiated than investment regional policy should be organically integrated in a new institutional environment with inclusive economic and political institutions and should be an accountable and transparent one in governance system.
Key words: investments, institutes, institutional environment, region, investment resources, direct investments, entrepreneurship, investment policy.
The essence of the study is to determine the impact of the level of institutional environment perfection of investment attractiveness of rural areas in Ukraine. The practical content has been determined by the fact that theoretical and methodological bases, conclusions, scientifc and practical recommendations form the scientifc basis for the development of a new and a whole concept of national investment policy development at the regional level in Ukraine, taking into account the integration and world economic globalization processes.
It has been substantiated that the institutional component is an important component of investment attractiveness for rural areas except an economic one. Research has proved that the formation of a perfect investment institutional environment changes the basic principles of economic interactions, makes them equally attainable for all participants of investment projects, gives the opportunity to reconcile the interests of the entities of the formal and informal sectors and provide them with motivational incentives for innovation-oriented and environmentally responsible country.
It has been concluded that the ability of a perfect institutional investment environment to direct an investment potential to the improving of well-being, innovations and investing in people requires the state to determine these tasks as critical of economic growth of rural areas in order to increase the inhabitants’ wealth. It has been substantiated than investment regional policy should be organically integrated in a new institutional environment with inclusive economic and political institutions and should be an accountable and transparent one in governance system.
Key words: investments, institutes, institutional environment, region, investment resources, direct investments, entrepreneurship, investment policy.
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10. Nort D. (2000). Ínstitutsíí̈, ínstitutsíyna zmína ta funktsíonuvannya yekonomíki [Institute, Institute of Law and Functionality of Economy] / Per. z angl. Í. Dzyubi. Kyiv: Osnovi, 198 p.
11. Porter, Majkl Je. (2005). Konkurencija [Competition]. Per. s angl. O.L. Peljavskogo i dr. Moscow: Vyl'jams. 608 p.
12. Strategija vprovadzhennja modeli zbalansovanogo rozvytku Ukrai'ny do 2030 roku (2018) [On the Strategy for the Implementation of the Balanced Development Model of Ukraine until 2030]. Proekt zakonu Ukrai'ny, no9015–1, art. 34. Available at: http://search.ligazakon.ua/l_doc2.nsf/link1/JH6YF00A.html.
13. Libanova, E.M., Hvesyk, M.A. (2014). Social'noekonomichnyj potencial stalogo rozvytku Ukrai'ny ta i'i' regioniv: nacional'na dopovid' [Socio-economic potential of sustainable development of Ukraine and its regions: a national report]. Kyiv: DU IEPSR NAN Ukrai'ny, 776 p. Available at: http://www.nbuv.gov.ua/sites/default/fles/nas_dop_2015.pdf .
14. Sformovano vseukrayinskyy reytynh instytutsiynoyi spromozhnosti i staloho rozvytku hromad [Formed all-Ukrainian rating іinstitutionali spromozhnostі і old steel development of communities. Portal "Gromadsky Prostir"]. Available at: https://www.prostir.ua/?news=sformovano.... tys-meshkantsiv-stanom-na-0....
15. Burkyns'kyj, B.V., Osypov, V.N., Molina, O.V. (2012). Formuvannja konkurentospromozhnoi' ekonomiky regionu Ukrai'ns'kogo Prychornomor’ja: monogr. [Shapingthe competitive economy of the Ukrainian Black Sea region: monogr.]. NAN Ukrai'ny, Instytut problem rynku ta ekonomiko-ekologichnyh doslidzhen' [NAS of Ukraine, Institute of Market Problems and Economic and Environmental Research]. Odesa, 492 p. Available at: https://economics.opu.ua/fles/scientifc-base/monogr/flippova_balan.pdf/
16. Fukuyama F. (2004). Konets istorii i posledniy chelovek [End of story and last man]. Per. s angl. MB. Levina. Moscov: OOO «Izdatel'stvo ACT: ZAO NPP «Yermak». 588 p.
17. Shul'c, S.L., Maksymchuk, M.V., Storonjans'ka, I.Z. (2010). Evoljucija paradygmy rajonuvannja ta i'i' modernizacija v umovah reformuvannja prostorovoinstytucijnoi' struktury ekonomiky Ukrai'ny. [The evolution
of the zoning paradigm and its modernization in the context of reforming the spatial and institutional structure of the Ukrainian economy]. Regional'na ekonomika [Regional economy], no. 3, pp. 20–28. Available at: http://www.irbisnbuv.gov.ua/cgi-bin/irbis_nbuv/cgiirbis_64.exe?18. Ukrai'na 2030: Doktryna zbalansovanogo rozvytku (2017) [Ukraine 2030: The Doctrine of Balanced Development]. L'viv: Kal'varija. 164 p. Available at: https://www.google.com/search?q=УКРАЇНА+2030%3A.
19. Hodson, G.M. (2002). The Evolution of Institutions: An Agenda for Future Theoretical Research. Constitutional Political Economy. No 13 (2), pp. 111–127.Available at: http://www.geoffrey-hodgson.info/user/image/evolinstagenda.pdf
20. Jiří Hammer (2016). The budgetary process with a use of modern approaches in cost management. Acta universitatis agriculturae et silviculturae mendelianae brunensis. Vol. 64. No 3, pp. 939–947. Available at: https://acta.mendelu.cz/media/pdf/actaun_ 2016064030939.pdf
21. Kuran, T. (2003). Why the middle east is economically underdeveloped: historical mechanisms of institutional stagnation. Department of Economics University of Southern California. June 10. 40 р. Available at: http://pdf.usaid.gov/pdf_docs/pnacx403.pdf
2. Hryshkivs’ka hromada (2020 p.). RADA.INFO portal miscevogo samovrjaduvannja. [Grishkivska community (2020). RADA.INFO portal of local self-government]. Available at: https://rada.info/upload/users_fles/04345380/239174089420f0c6378f9b64cb3... .
3. Jevropejs'ka Biznes Asociacija (JeBA): Investycijnyj klimat v Ukrai'ni vyjshov z negatyvnoi' ploshhyny. [European Business Association (EBA): The investment climate in Ukraine has come out of the negative]. AgroPortal. 11 July 2018. Available at: http://agroportal.ua/ua/news/ukraina/eba-investitsionnyi-klimat-v-ukrain...
4. Investytsiynyy klimat v Ukrayini [The investment climate in Ukraine] 2019. Oftsiynyy sayt Ministerstva ekonomichnoho rozvytku, torhivli ta silskoho hospodarstva Ukrayiny [Ofcial site of the Ministry of Economic Development, Trade and Agriculture of Ukraine]. Available at: www.me.gov.ua.
5. Ishhuk, S.O. (2014). Investycijnyj proces i perspektyvy rozvytku vyrobnychoi' sfery u Zahidnomu regioni Ukrai'ny [Investment process and prospects of development of industrial sphere in the Western region of Ukraine] Regional'na ekonomika. [Regional economy]. No 3, pp. 217–227. Available at: http://nbuv.gov.ua/UJRN/regek_2014_3_23.
6. Kommons Dzhon. (2012). Institutsional'naya ekonomika [Institutional economics]. / per. s angl. A.A. Ogenisyan. Terra Ekonomicus. Vol. 10. No 3. pp. 69–76.
7. Kouz R. Firma, rynok i pravo [Firm, market and law] / Per. s angl. Moscow: Delo LTD, 1993. 264 p.
8. Lajko, O.I. (2009). Investycijnyj potencial regionu: efektyvnist' vykorystannja ta neproduktyvnyj vidtik kapitalu [Investment potential of the region: efciency of use and unproductive capital outflow]. Odesa, IPREED NAN Ukrai'ny. 433 p.
9. Lajko, O.I. Konceptual'ni zasady zabezpechennja spryjatlyvogo instytucional'nogo seredovyshha investycijnoi' dijal'nosti regioniv [Conceptual bases for ensuring a favorable institutional environment for the investment activity of the regions] Visnyk Nacional'nogo universytetu «L'vivs'ka Politehnika». [Vis. nat. Univ. «Lviv Polytechnic»], 2016, no. 847, pp. 114–123. Available at: http://ena.lp.edu.ua:8080/bitstream/ntb/34892/1/19_114-123.pdf.
10. Nort D. (2000). Ínstitutsíí̈, ínstitutsíyna zmína ta funktsíonuvannya yekonomíki [Institute, Institute of Law and Functionality of Economy] / Per. z angl. Í. Dzyubi. Kyiv: Osnovi, 198 p.
11. Porter, Majkl Je. (2005). Konkurencija [Competition]. Per. s angl. O.L. Peljavskogo i dr. Moscow: Vyl'jams. 608 p.
12. Strategija vprovadzhennja modeli zbalansovanogo rozvytku Ukrai'ny do 2030 roku (2018) [On the Strategy for the Implementation of the Balanced Development Model of Ukraine until 2030]. Proekt zakonu Ukrai'ny, no9015–1, art. 34. Available at: http://search.ligazakon.ua/l_doc2.nsf/link1/JH6YF00A.html.
13. Libanova, E.M., Hvesyk, M.A. (2014). Social'noekonomichnyj potencial stalogo rozvytku Ukrai'ny ta i'i' regioniv: nacional'na dopovid' [Socio-economic potential of sustainable development of Ukraine and its regions: a national report]. Kyiv: DU IEPSR NAN Ukrai'ny, 776 p. Available at: http://www.nbuv.gov.ua/sites/default/fles/nas_dop_2015.pdf .
14. Sformovano vseukrayinskyy reytynh instytutsiynoyi spromozhnosti i staloho rozvytku hromad [Formed all-Ukrainian rating іinstitutionali spromozhnostі і old steel development of communities. Portal "Gromadsky Prostir"]. Available at: https://www.prostir.ua/?news=sformovano.... tys-meshkantsiv-stanom-na-0....
15. Burkyns'kyj, B.V., Osypov, V.N., Molina, O.V. (2012). Formuvannja konkurentospromozhnoi' ekonomiky regionu Ukrai'ns'kogo Prychornomor’ja: monogr. [Shapingthe competitive economy of the Ukrainian Black Sea region: monogr.]. NAN Ukrai'ny, Instytut problem rynku ta ekonomiko-ekologichnyh doslidzhen' [NAS of Ukraine, Institute of Market Problems and Economic and Environmental Research]. Odesa, 492 p. Available at: https://economics.opu.ua/fles/scientifc-base/monogr/flippova_balan.pdf/
16. Fukuyama F. (2004). Konets istorii i posledniy chelovek [End of story and last man]. Per. s angl. MB. Levina. Moscov: OOO «Izdatel'stvo ACT: ZAO NPP «Yermak». 588 p.
17. Shul'c, S.L., Maksymchuk, M.V., Storonjans'ka, I.Z. (2010). Evoljucija paradygmy rajonuvannja ta i'i' modernizacija v umovah reformuvannja prostorovoinstytucijnoi' struktury ekonomiky Ukrai'ny. [The evolution
of the zoning paradigm and its modernization in the context of reforming the spatial and institutional structure of the Ukrainian economy]. Regional'na ekonomika [Regional economy], no. 3, pp. 20–28. Available at: http://www.irbisnbuv.gov.ua/cgi-bin/irbis_nbuv/cgiirbis_64.exe?18. Ukrai'na 2030: Doktryna zbalansovanogo rozvytku (2017) [Ukraine 2030: The Doctrine of Balanced Development]. L'viv: Kal'varija. 164 p. Available at: https://www.google.com/search?q=УКРАЇНА+2030%3A.
19. Hodson, G.M. (2002). The Evolution of Institutions: An Agenda for Future Theoretical Research. Constitutional Political Economy. No 13 (2), pp. 111–127.Available at: http://www.geoffrey-hodgson.info/user/image/evolinstagenda.pdf
20. Jiří Hammer (2016). The budgetary process with a use of modern approaches in cost management. Acta universitatis agriculturae et silviculturae mendelianae brunensis. Vol. 64. No 3, pp. 939–947. Available at: https://acta.mendelu.cz/media/pdf/actaun_ 2016064030939.pdf
21. Kuran, T. (2003). Why the middle east is economically underdeveloped: historical mechanisms of institutional stagnation. Department of Economics University of Southern California. June 10. 40 р. Available at: http://pdf.usaid.gov/pdf_docs/pnacx403.pdf
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