UDC 330.322.1:351; JEL H54, E60
Ivashko, O. A. (2023). Suchasna paradyhma doslidzhennya publichnykh investytsiy [The modern paradigm of public investment research]. In Sotsial'no-ekonomichni problemy suchasnoho periodu Ukrayiny [Socio-Economic Problems of the Modern Period of Ukraine]: Vol. 164 (6) (pp. 33-38). DOI: https://doi.org/10.36818/2071-4653-2023-6-5 [in Ukrainian].
Sources: 11

Authors



Ivashko Olena Anatoliyivna

Ph.D. of Economics, Associate Professor

Associate Professor of the Department of finance of the Lesya Ukrainka Volyn National University

Contacts: olena.ivasko@gmail.com, ivashko.olena@vnu.edu.ua

Webpages:

Resume

Public investment is the expenditure of the public sector (national and local authorities) on the creation of infrastructure that is state (or municipal) property with a term of use of more than one year. The sources of financing may include state or local budget funds, borrowed funds, funds of state or municipal enterprises, and fees charged to infrastructure users. Public investment is usually measured quantitatively, annually, as a percentage of total national income over a given period. Public investment can also take the form of traditional infrastructure projects or public-private partnerships, which is most common in Ukrainian practice. Public investment management is becoming a prerequisite and the general goal of socio-economic development. That is, structural changes supported by public investment management institutions ensure economic growth, and their implementation is regulated by the criteria for ensuring the economic security of the state. The article proves that public investment management is a multifaceted category reflecting a socio-economic phenomenon and is considered as a motive and purpose of functioning of macro-systems; the level of autonomy (independence) of the economy, which ensures the achievement of the aggregate vector of interests of the structural elements of the macro-system; a qualitative characteristic of the economic system, which allows assessing its viability in the context of transformational changes. Public investment management is also a tool for achieving the goals of economic, investment, and budgetary policies, and at the same time is a tool for managing public finances. The impact of public investment on the country’s economic development and the welfare of the population directly depends on the goals and expected results of investment at the national and subnational levels. The quality and effectiveness of public investment management directly impacts the achievement of sustainable development goals through the planning, allocation, and implementation of relevant infrastructure investment projects. Public institutions have a crucial impact on both the effective implementation of public investment and the promotion of private investment in infrastructure projects. This means that even the implementation of publicly funded infrastructure projects requires the participation of private companies, which will carry out the work at the expense of public investment. Therefore, without appropriate protection, the public investment system cannot work effectively.

Keywords:

public investment, public investment management, institutional support, system, state

References


1. Terms used in official statistics (2023). Statistics Poland: Website. Retrieved from https://stat.gov.pl/en/metainformation/glossary/terms-used-in-official-statistics/4090,term.html
2. Stiglitz, J. E. (2004). Ekonomia sektora publicznego [Public sector economics]. Warsaw. [in Polish].
3. Harding, H. (2021, Jul 06). Publichni investytsiyni potreby na mistsevomu rivni v Ukrayini [Public investment needs at the local level in Ukraine]. Decentralization: Website. Retrieved from https://decentralization.gov.ua/news/13743 [in Ukrainian].
4. Zioło, M. (2013). Makroekonomiczne zależności pomiędzy inwestycjami publicznymi a wzrostem gospodarczym, deficytem i długiem publicznym [Macroeconomic relationships between public investment and economic growth, deficit and public debt]. Zarządzanie i Finanse – Management and Finance, 11(2), 523-534. [in Polish].
5. Aschauer, D. A. (1989). Public investment and productivity growth in the Group of Seven. Economic perspectives, 13(5), 17-25.
6. Glomm, G., & Ravikumar, B. (1994). Public investment in infrastructure in a simple growth model. Journal of Economic Dynamics and Control, 18(6), 1173-1187. DOI: https://doi.org/10.1016/0165-1889(94)90052-3
7. Hryshkevych, O. M., & Ryzhakova, H. M. (2020). Suchasna paradyhma publichnykh investytsiyy yak instrument derzhavnoho rehulyuvannya staloho ekonomichnoho rozvytku [The modern paradigm of public investment as an instrument of state regulation of sustainable economic development]. In Upravlinnya rozvytkom skladnykh system [Management of the development of complex systems]: Vol. 44 (pp. 136-142). DOI: https://doi.org/10.32347/2412-9933.2020.44.136-142 [in Ukrainian].
8. Metodychni rekomendatsiyi z pidhotovky ta otsinky derzhavnoho investytsiynoho proektu [Methodological recommendations for the preparation and evaluation of the state investment project] (2017). Approved by order of the Ministry of Economy, dated 2017, Dec 22. Legislation of Ukraine: Website. Retrieved from https://zakon.rada.gov.ua/rada/show/v1865731-17#Text [in Ukrainian].
9. Recommendation on Effective Public Investment Across Levels of Government (2014). OECD Council. Retrieved from https://www.oecd.org/regional/regional-policy/recommendation-effective-public-investment-across-levels-of-government.htm
10. Ukraiyina: otsinka upravlinnya derzhavnymy investytsiyamy [Ukraine: Public investment management performance assessment] (2012). International Bank for Reconstruction and Development. The World Bank. Retrieved from https://issuu.com/world.bank.europe.central.asia/docs/ukraine-pim-ukr [in Ukrainian].
11. Public Investment Management Assessment – Review and Update (2018, May 10). IMF: Website. Retrieved from https://www.imf.org/en/Publications/Policy-Papers/Issues/2018/05/10/pp042518public-investment-management-assessment-review-and-update