Actuality of theme. The research of problems of investment of economy always was at the centre
of attention of economic sciences. It is caused that the investments mention the most deep bases of economic
activity, determining process of economic growth in general.n modern terms they are the most important means of ensuring the conditions to
overcome the economic crisis that has arisen, structural changes in economy, technical progress, increase the quality of economic
activity on the micro and macro levels.
The economic situation in Ukraine is now
more difficult for investment: development of the investment mechanism, adequate
to the market relations is required. The investment processes of each country
are closely connected of each general economic development. The activization of
investment activity during economic stagnation , not only contributing to
replacement of outdated fixed capital, but also is an indispensable condition of
introduction in production of the newest scientific and technical achievement.
The purpose of the master's work is further development of theoretical, methodological approaches and development of the practical recommendations for evaluating and improving the efficiency of investment processes in the Ukraine, as well as developing recommendations for its development.
To achieve this goal is formulated in complex tasks:
The object of the investment processes are being planned and implemented in the Ukraine.
Research methods. Theoretical and methodological basis of the master's work are the classical position of economic theory, the fundamental work of scientists and practitioners on the investment processes and increase their efficiency.
Analysis of recent studies and publications. The issues of investment and the investment process involved both foreign and domestic scholars, including W. Behrens, L. Gitman, Samuelson [1], J. Honko, I.A Blank [2], A.D Dubrava, I.J Dorosh, M.I Kisil, M.Y Kodenska, I.V Lipsyts, A.V Mertens, A.A Peresada, G.M Pidlisetskyy, P.S Rohozhin, P.T Sabluk, V.P Savchuk, O. Starikov, T. Khachaturov, V.M Hobta [3], V.J Shevchuk and others. However, the questions connected to efficiency of investment processes, sources of financing and methods of activization of investment activity of the enterprises remain unsufficiently worked. Necessity and practical importance of the decision of these questions have caused a choice of a theme of research.
First section — "Theoretical bases of investment processes" to reveal the essence of investment, the analysis of the current state of investment
processes in Ukraine, to identify factors to activate and enhance effectiveness.
A modern economic situation in Ukraine considerably complicates investment activity (political, economic instability high
level of inflation, etc.) [4]. According to official data of State Statistics Committee of Ukraine for years of independence
the parameters of development of economy had the negative tendency, but since 2000 the improvement
of separate parameters was achieved. Since 1998, the rise in capital investment — an increase of 6,1%.
Dynamics of macroeconomic indicators is reflected in the table 1.
| Year | GDP | Volumes of industrial products | Investments in the fixed assets |
|---|---|---|---|
| 1995 | 87,8 | 88 | 71,5 |
| 1996 | 90 | 94,9 | 78 |
| 1997 | 97 | 99,7 | 91,2 |
| 1998 | 98,1 | 99 | 106,1 |
| 1999 | 99,8 | 104 | 100,4 |
| 2000 | 105,9 | 112,4 | 114,4 |
| 2001 | 109,2 | 114,2 | 120,8 |
| 2002 | 105,9 | 107 | 108,9 |
| 2003 | 109,3 | 115,8 | 127,7 |
| 2004 | 112,1 | 112,5 | 128 |
| 2005 | 102,7 | 103,1 | 101,9 |
| 2006 | 107,1 | 106,2 | 119 |
| 2007 | 107,9 | 110,2 | 129,8 |
| 2008 | 102,1 | 96,9 | 97,4 |
| 2009 | 85,2 | 80,1 | 58,9 |
| 2010 | 101,3 | 112,5 | 99,4 |
Dynamics of foreign investments in Ukraine is characterized by large
fluctuations. So in 2000-2005, observed an annual increase of foreign
investments in Ukraine (348% in 2005 to level 2004), but already in 2006 the
total investment flows declined sharply from 7843.1 million. U.S. 4717.3
million. USA. A distinctive feature of the investment processes in Ukraine
is to reduce the state's role as an investor and development of private
investment, the main source of investment for most domestic enterprises that
presently their own funds, which significantly limits the expansion and
improvement of production efficiency [5].
W ith a comprehensive point of view, the term "investments"
can be defined as follows: investment is investment in various sectors of
economy in the facilities business and other activities for profit (income)
and to achieve other economic or non-economic effect.
The second chapter deals with the development of regulations to improve
the efficiency of investment processes and methodical approaches to the
evaluation of investment projects.
Today date, the mechanism of investment company
is in process of formation. Investment activity serves as the main form of economic
strategies that promote successful problem solving business. Problems of functioning
of investment activity in industrial enterprises and some of its elements is given serious
attention today. However, analysis of current practice shows that the mechanism of regulation
of investment processes (Fig. 1) requires further improvement.
Picture 1 — Constituents of mechanism of management by investment activity
In terms of improvement of
investment activity in industrial enterprises now much attention is paid to the
use of strategic approaches. Indeed, the main purpose of investment in the
company should be to ensure the most effective ways to implement its investment
strategy, which acts as a system of long-term goals, resulting from the general
objectives of development and investment ideology [ 10].
The decision on whether individual investment is determined by the procedure
evaluate their effectiveness. The research gives good reason to assume that the
low efficiency of investment in our country to some extent determined by the
imperfect tools for project appraisal. Therefore, comprehensive financial and
economic evaluation of investment projects has a special place in the
justification of the choice of alternative investment investment resources. To
ensure the dynamic development of industry is possible with the development of
optimal strategies for financing of investment programs and the procedure for
assessment of their effectiveness in the calculation of risk factors. While
financial and economic evaluation to determine the level of performance most
used in modern practice are the following figures. (Pic. 2).
Picture 2 — Performance evaluation of investment
When making decisions in the company of long-term investments are
needed in forecasting performance. It is necessary to conduct long-term
analysis of revenues and expenses listed in terms of figure 2, which are
calculated by the following formulas [7]:
(1)
(2)
(3)
(4)The method of selection of investment projects based on the list of criteria is considered compliance of each criterion and each of them is evaluation. The method allows to highlight the advantages and disadvantages of the project. In compiling the list of criteria to use only those arising from the objectives, strategies and objectives of the company, the orientation of its long-term plans.
The third chapter involves the development of practical recommendations to improve methods of evaluation of the investment performance. This evaluation must begin at the stage of calculating the values of key performance indicators. To solve the problem of increasing the efficiency of business investment, primarily to develop the complex mechanism of investment activity, one that will allow to adequately assess the implementation of planned projects, to detect possible threats and risks of investments and make necessary adjustments.
The research methodology selection of investment projects is the need to develop criteria to assess the effectiveness of investment in industrial enterprises. In deciding which of the indicator to follow when deciding on the feasibility of the project, you must use a variety of economic methods. Their substantiation and practical use in industrial enterprises of Ukraine will be devoted to further investigation.
Note!
At the time of writing this summary the master thesis was not yet completed. The deadline for completion is December 2010. Full text of the work and materials on the topic can be obtained from the author or his supervisor after that date.