DETERMINING THE ROLE OF BANKS IN THE FINANCING OF INNOVATIVE DEVELOPMENT PROCESSES OF THE ECONOMY
Journal Title: Baltic Journal of Economic Studies - Year 2018, Vol 4, Issue 3
Abstract
The paper states that the success of Ukraine’s development, in the context of the transition to the model of Ukraine’s innovative development, contributes to a clear choice of priorities, among which the main thing is to ensure high rates of economic growth. The role of banks in reproductive processes is proved, which corresponds to modern problems of innovative development of the Ukrainian economy. The scientific approaches of various economic theories (neoclassical, monetarist, Keynesian, institutional, and the concept of financial mediation) are investigated. Advantages of studying the world experience of economic theory are to determine its connection with banking activities. But this does not entail the task of carrying out a complete historical study of all economic concepts relating to the impact on the economic development of the financial market itself and its subjects. The author highlighted the task of studying the relationship of development, participation of banking sector actors, and trends in the development of new paradigms in the theory of financial intermediation. The purpose of the article is to conduct an analysis of the theoretical provisions on determining the role of banks in financing innovative development of the economy. Methodology. The information base of the research is the results of scientific research results in determining the influence of the monetary sphere, interest rates, production, investments, and state on the processes of reproduction of the economy, published in monographic studies and publications in periodicals. During the research, methods of logical generalization, comparative analysis, system approach that takes into account the dynamic functional dependence between the state of the whole, development and the balance of its constituent elements are used. Results. The article emphasizes that the issue of activating the activity of banks in the investment market has become particularly significant. A critical analysis of research and development of leading scholars has led to the conclusion that there is no generally accepted idea of determining the place and role of banks in the growth of the country’s economy. It is established that the representatives of neoclassical theories of mediation most thoroughly considered the theoretical positions regarding the definition of the role of banks in the revitalization of economic growth. Practical implementation. The practical significance is in the fact that scientific research clearly, understandably, and consistently proves the importance of the participation of banks in reproductive processes. The results obtained in the future will be used to develop recommendations for defining the directions of interaction between banks and enterprises of the real sector of the Ukrainian economy in order to enhance the processes of bank financing of innovation development of the economy. Value/novelty. The article substantiates the special role of banks in economic growth, which is determined by the increase in business activity, the impact on the increase of money supply in circulation, the priority of credit operations aimed at the country’s crisis recovery.
Authors and Affiliations
Diana Zavadska
Keywords
Related Articles
- EP ID EP477707
- DOI 10.30525/2256-0742/2018-4-3-68-73
- Views 99
- Downloads 0
APPROACHES TO THE INTERPRETATION OF THE TERM “HISTORICAL FINANCIAL INFORMATION” AS THE CRITERION FOR THE CLASSIFICATION OF AUDIT, REVIEW, AND OTHER ASSURANCE ENGAGEMENTS
The criterion “underlying subject matter” and the associated criterion “subject matter information” is an essential element of the assurance engagements and the basis for distinguishing their different types. The purpose...
FUTURE OF OFFLINE MARKETING AHEAD OF THE RAPID DEVELOPMENT OF ONLINE MARKETING
Quick internet coverage all over the world created new possibilities of its usage as a new mass media which are more flexible, dynamic and, what is more important, almost uncontrollable. And they require approaches and k...
DEVELOPMENT OF VARIABILITY CONCEPT IN ACCOUNTING: UKRAINIAN CONTEXT
The purpose of the article is to develop theoretical fundamentals of the concept of variability in accounting taking into account development features of NAS under the influence of trends of accounting harmonization and...
THE ECONOMY OF UKRAINE: DIRECTIONS OF DEVELOPMENT, NEGATIVE AND POSITIVE TRENDS
The aim of the article is the analysis of the current state of Ukraine’s economy, consideration of positive and negative trends and the main factors for further economic growth, as well as the definition of an effective...
WAYS OF DEVELOPMENT OF THE POTENTIAL OF STATE IN THE MARINE ECONOMIC COMPLEX: ECOLOGICAL AND ECONOMIC ASPECTS
At present, issues of assessing the impact of economic activity on the environment as an integral part of the country’s economic development are becoming more and more relevant. Environmental problems of the development...