THE LEGAL MECHANISM OF NATIONAL INVESTMENT POLICY FORMATION

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THE LEGAL MECHANISM OF NATIONAL INVESTMENT POLICY FORMATION

Journal Title: Економічна теорія та право - Year 2016, Vol 2, Issue 25

Abstract

Problem setting. It is worth mentioning that the normative and legal basis of regulation of investment processes in Ukraine does not use an «investment policy» notion. For instance, the Law of Ukraine «On the Investment Policy» uses a notion such as «government regulation of the investment activity». A purpose of the very government regulation of the investment activity is implementation of economic, scientific and technical, and social policies based on goals and figures of economic and social development of Ukraine, national and regional programs of economic development, state and local budgets, particularly outlined amounts of investment activity financing. The government regulation of the investment activity includes managing government investments, regulation of investment activity conditions, and control over the investment activity of all the investor and participants. Therefore, the investment policy is a key method of government regulation of an investment policy. Recent research and publications analysis. Yu. Ye. Atamanova, O. M. Vinnyk, D. V. Zadykhailo, V. K. Mamutov, V. M. Pashkov, V. V. Reznikova, V. A. Ustymenko, O. V. Shapovalova, V. S. Shcherbyna et al. have considered particular legal aspects of economic and legal frameworks and implementation of the investment activity. Simultaneously, the scientists have not considerably examined matters of formation and implementation of the investment activity. Paper objective. An article purpose is to research peculiarities of the normative and legal formation of the national investment policy. Paper main body. At the micro level, an economic process of functioning of any business entity in a market includes several phases of an economic cycle. This fact confirms functional nature of the investment market. Undoubtedly, the first phase is investing in a production process. The next phase is the very production process. Then, there are phases of selling goods and services, gaining profit, and reinvesting in extension of production. However, there is a need to emphasize that, as previously mentioned, a functional feature rather than a feature of object specificity indicates the investment market. In the traditional sense, when we talk about markets of particular goods, a money owner embodies solvent demand and a commodity owner embodies supply. In the investment market case, parties presenting demand and supply are ambiguous. Conclusions of the research. Consequently, the government investment policy cannot be implemented without outside interference (in isolation from the social and economic policy of the government). The investment policy implementation is aimed at enhancement of social and economic position in the society overall. Solution of economic problems is closely related to social problems. From the point of view of some economists, the investment policy can be considered as the most important direction of the social and economic policy of the government, which enables to achieve determined goals with the use of the government regulative influence. Short Abstract for an article Аbstract. The article proves that the government investment policy is a component of the national economic policy. The investment policy is an important leverage of the influence on the country economy as well as the entrepreneurial activity and its business entities. The author indicates that there is no precise system of development and carrying out an investment policy. However, imperfectness of a process of modification of the policy into certain legislative actions is the main obstacle. As a result, a problem of carrying out the government investment policy becomes significantly important. The author substantiates that the mechanism of government regulation of investment processes is a set of instruments and methods of the government influence on an investment policy of business entities. Formation of the mechanism of investment policy implementation is concerned with application of all market mechanisms for investment activity regulation.

Authors and Affiliations

В. О. Бударна

Keywords

EP ID EP175179
DOI -
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