Vladislav V. Zymovets, Nataliia M. Shelud`ko, 79_05
Friday, 06 October 2017 14:26 | Author: Покотиленко Р.В. | 
Vladislav V. Zymovets,
Doctor of Economic
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it ;
Nataliia M. Shelud`ko,
Doctor of Economic, prefessor
State Institution «Institute for Economics and Forecasting, NAS of Ukraine»
01011, Ukraine, Кyiv, Panasa Myrnoho str, 26
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Debt burden and investment disfunction in real sector of Ukraine
Section: Macroeconomic and regional problems of industrial development
Ekon. promisl. 2017, 79(3): 82-95
DOI: https://doi.org/10.15407/econindustry2017.03.082
Language: Ukrainian
| Full text (PDF)
References
1. Amosha, O.I., Vishnevsky, V.P., Zbarazska, L.O. and oths. (2014). Industry and industrial policy of Ukraine 2013: current trends, challenges, opportunities: Scientific and Analytical Report. In V.P. Vishnevsky (Ed.). Donetsk, Institute of Industrial Economics of NAS of Ukraine [in Ukrainian].
2. Vishnevsky, V. (2016). Global neoindustrialization and its lessons for Ukraine. Economy of Ukraine, 8, pp. 26-43 [in Russian].
3. Vishnevsky, V. (2012). Industrial policy: theoretical aspects. Economy of Ukraine, 2, pp. 4-15 [in Russian].
4. Аlymov, О., Danylenko, А., & Тrehobchuk, V. and oths. (2005). Economical development of Ukraine: institutional resource providing: In S.І. Pyrozhkov (Ed.). Kyiv, United Institute for Economics of NAS of Ukraine [in Ukrainian].
5. State corporate finances stabilization policy. (2011). In А.І. Danylenko (Ed.). Кyiv: Institute for Economics and Forecasting of NAS of Ukraine [in Ukrainian].
6. Risks and perspectives development of Ukraine in post crises renewal. (2012). In А.І. Danylenko (Ed.). Кyiv: Institute for Economics and Forecasting of NAS of Ukraine [in Ukrainian].
7. Structural changes and economical development of Ukraine. (2011). In L.V. Shynkaruk (Ed.). Кyiv: Institute for Economics and Forecasting of NAS of Ukraine [in Ukrainian].
8. Heyets, V. (2014). Institutional conditionality of innovative processes in Ukraine's industrial development. Economy of Ukraine, 12, pp. 4-19 [in Ukrainian].
9. Heyets, V. (2010). Liberal-democratic principles: course to a modernization of Ukraine. Economy of Ukraine, 2010, 3, pp. 4-20 [in Ukrainian].
10. Yakubovs'kyi, M., Novyts'kyi, V., & Kindzers'kyi, Yu. (2007). Conceptual foundations of the strategy of development of Ukraine's industry in the period till 2017. Economy of Ukraine, 11, pp. 4-20 [in Ukrainian].
11. The potential of the national industry: problems and perspectives structural and innovation transformations. (2007). In Yu.V. Kindzersky (Ed.). Kyiv: Institute for Economics and Forecasting of NAS of Ukraine [in Ukrainian].
12. Kindzersky, Yu.V., Yakubovsky, M.M., Galitsa, I.A. and oths. (2009). The potential of the national industry: the goals and mechanisms of effective development. In Yu.V. Kindzersky (Ed.). Kyiv: Institute for Economics and Forecasting of NAS of Ukraine [in Ukrainian].
13. Payment behavior: Who's paying the piper? Retrieved from http://www.eulerhermes.com/mediacenter/Lists/mediacenter-documents/Economic-Insight-Payment-Behavior-DSO-Jun15.pdf [assessed 30 May 2017].
14. IMF. Global Financial Stability Report: Vulnerabilities, Legacies, and Policy Challenges. Risks Rotating to Emerging Markets. 2015. October. Retrieved from http://www.imf.org/External/Pubs/FT/GFSR/2015/02/pdf/text.pdf [assessed 20 May
2017].
15. The transmission channels between the financial and real sectors: a critical survey of the literature. (2011, February, 18). BCBS Working Papers. 16. De Haas, R., & Peeters, M. (2006). The dynamic adjustment towards target capital structures of firms in transition economies. Economics of Transition, 14(1), pp. 133-169. Retrieved from ebrd.com/downloads/research/economics/publications/EoT_by_RDH.pdf [assessed 02 June 2017].
17. Korteweg, A.G. (2007). The Costs of Financial Distress Across Industries. Retrieved from https://ssrn.com/abstract=945425 оr http://dx.doi.org/10.2139/ssrn.945425 [assessed 12 June 2017]. https://doi.org/10.2139/ssrn.945425
18. World Bank. Resolving Insolvency. Doing Business. Retrieved from http://www.doingbusiness.org/data/exploretopics/resolving-insolvency [assessed 02 June 2017].
19. Ormotsadze, M. (2016, May 27). Ukrainian Roulette: Clients Lost Over UAH300bn in Banks Bankrupted. Forbes Ukraine, Retrieved from http://forbes.net. ua/business/1416943-ukrainskaya-ruletkagrazhdane-i-biznes-poteryali-v-bankahbankrotah-svyshe-300-mlrd-griven [assessed 02 February 2017].
20. Harkavenko, V., & Shapoval, Yu. (2017). «Moppig up» banking sector in Ukraine: the value for society and state. Ukrainian society, 1, pp. 108-123 [in Ukrainian].
21. Zymovets, V. (2010). State economy development finance policy. Кyiv: Institute for Economics and Forecasting of NAS of Ukraine [in Ukrainian].
22. A confidence crisis?. Restoring trust in financial services. (2011). Edited by John Springford. L.: SMF. Retrieved from http://www.smf.co.uk/wp-content/uploads/2011/07/Publication-A-Confidence-Crisis-Restoring-trust-in-financial-services.pdf [assessed
14 February 2017].
23. Crisis influence on real sector finances Ukrainian economy and improvement mechanism. (2014). In А.І. Danylenko (Ed.). Кyiv: Institute for Economics and Forecasting of NAS of Ukraine [in Ukrainian]
Doctor of Economic
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it ;
Nataliia M. Shelud`ko,
Doctor of Economic, prefessor
State Institution «Institute for Economics and Forecasting, NAS of Ukraine»
01011, Ukraine, Кyiv, Panasa Myrnoho str, 26
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Debt burden and investment disfunction in real sector of Ukraine
Section: Macroeconomic and regional problems of industrial development
Ekon. promisl. 2017, 79(3): 82-95
DOI: https://doi.org/10.15407/econindustry2017.03.082
Language: Ukrainian
Abstract:
The paper deals with factors of Ukrainian companies’ investment activity before and after the global financial crisis of 2008-2009. Given the growth of non-financial corporations debt under the general monetary tightening accompanied by the stagnation of investment in fixed assets, the roles of financial constraints and debt burden are investigated.The paper also considers the influence of macrofinancial and institutional factors’ influence on the "debt burden" formation in the real sector of the Ukrainian economy. The failure to ensure the modernization of enterprises in the real sector of the economy through the market mechanisms has been proved. The necessity of reanimation of the concept of economic nationalism and activation of state participation in financing of priority investment projects is substantiated.The results show differences in the investment behavior of enterprises before and after the crisis of 2008-2009: the weak influence of financial constraints before the crisis turned into statistically and economically significant thereafter. In the post-crisis environment of limited financial resources states’ borrowing can crowd out borrowings of other companies, and thus crowd out private investment.The presence of debt burden may have implications on monetary policy: central bank has an additional argument in favor of softer policy. The government has to take into account the heterogeneity of industrial enterprises: the major "burden" of tight monetary policy and reforms in financial sector falls on the corporate investment.
Keywords: debt burden; corporate investment; industry; financial constraints
The paper deals with factors of Ukrainian companies’ investment activity before and after the global financial crisis of 2008-2009. Given the growth of non-financial corporations debt under the general monetary tightening accompanied by the stagnation of investment in fixed assets, the roles of financial constraints and debt burden are investigated.The paper also considers the influence of macrofinancial and institutional factors’ influence on the "debt burden" formation in the real sector of the Ukrainian economy. The failure to ensure the modernization of enterprises in the real sector of the economy through the market mechanisms has been proved. The necessity of reanimation of the concept of economic nationalism and activation of state participation in financing of priority investment projects is substantiated.The results show differences in the investment behavior of enterprises before and after the crisis of 2008-2009: the weak influence of financial constraints before the crisis turned into statistically and economically significant thereafter. In the post-crisis environment of limited financial resources states’ borrowing can crowd out borrowings of other companies, and thus crowd out private investment.The presence of debt burden may have implications on monetary policy: central bank has an additional argument in favor of softer policy. The government has to take into account the heterogeneity of industrial enterprises: the major "burden" of tight monetary policy and reforms in financial sector falls on the corporate investment.
Keywords: debt burden; corporate investment; industry; financial constraints
| Full text (PDF)
References
1. Amosha, O.I., Vishnevsky, V.P., Zbarazska, L.O. and oths. (2014). Industry and industrial policy of Ukraine 2013: current trends, challenges, opportunities: Scientific and Analytical Report. In V.P. Vishnevsky (Ed.). Donetsk, Institute of Industrial Economics of NAS of Ukraine [in Ukrainian].
2. Vishnevsky, V. (2016). Global neoindustrialization and its lessons for Ukraine. Economy of Ukraine, 8, pp. 26-43 [in Russian].
3. Vishnevsky, V. (2012). Industrial policy: theoretical aspects. Economy of Ukraine, 2, pp. 4-15 [in Russian].
4. Аlymov, О., Danylenko, А., & Тrehobchuk, V. and oths. (2005). Economical development of Ukraine: institutional resource providing: In S.І. Pyrozhkov (Ed.). Kyiv, United Institute for Economics of NAS of Ukraine [in Ukrainian].
5. State corporate finances stabilization policy. (2011). In А.І. Danylenko (Ed.). Кyiv: Institute for Economics and Forecasting of NAS of Ukraine [in Ukrainian].
6. Risks and perspectives development of Ukraine in post crises renewal. (2012). In А.І. Danylenko (Ed.). Кyiv: Institute for Economics and Forecasting of NAS of Ukraine [in Ukrainian].
7. Structural changes and economical development of Ukraine. (2011). In L.V. Shynkaruk (Ed.). Кyiv: Institute for Economics and Forecasting of NAS of Ukraine [in Ukrainian].
8. Heyets, V. (2014). Institutional conditionality of innovative processes in Ukraine's industrial development. Economy of Ukraine, 12, pp. 4-19 [in Ukrainian].
9. Heyets, V. (2010). Liberal-democratic principles: course to a modernization of Ukraine. Economy of Ukraine, 2010, 3, pp. 4-20 [in Ukrainian].
10. Yakubovs'kyi, M., Novyts'kyi, V., & Kindzers'kyi, Yu. (2007). Conceptual foundations of the strategy of development of Ukraine's industry in the period till 2017. Economy of Ukraine, 11, pp. 4-20 [in Ukrainian].
11. The potential of the national industry: problems and perspectives structural and innovation transformations. (2007). In Yu.V. Kindzersky (Ed.). Kyiv: Institute for Economics and Forecasting of NAS of Ukraine [in Ukrainian].
12. Kindzersky, Yu.V., Yakubovsky, M.M., Galitsa, I.A. and oths. (2009). The potential of the national industry: the goals and mechanisms of effective development. In Yu.V. Kindzersky (Ed.). Kyiv: Institute for Economics and Forecasting of NAS of Ukraine [in Ukrainian].
13. Payment behavior: Who's paying the piper? Retrieved from http://www.eulerhermes.com/mediacenter/Lists/mediacenter-documents/Economic-Insight-Payment-Behavior-DSO-Jun15.pdf [assessed 30 May 2017].
14. IMF. Global Financial Stability Report: Vulnerabilities, Legacies, and Policy Challenges. Risks Rotating to Emerging Markets. 2015. October. Retrieved from http://www.imf.org/External/Pubs/FT/GFSR/2015/02/pdf/text.pdf [assessed 20 May
2017].
15. The transmission channels between the financial and real sectors: a critical survey of the literature. (2011, February, 18). BCBS Working Papers. 16. De Haas, R., & Peeters, M. (2006). The dynamic adjustment towards target capital structures of firms in transition economies. Economics of Transition, 14(1), pp. 133-169. Retrieved from ebrd.com/downloads/research/economics/publications/EoT_by_RDH.pdf [assessed 02 June 2017].
17. Korteweg, A.G. (2007). The Costs of Financial Distress Across Industries. Retrieved from https://ssrn.com/abstract=945425 оr http://dx.doi.org/10.2139/ssrn.945425 [assessed 12 June 2017]. https://doi.org/10.2139/ssrn.945425
18. World Bank. Resolving Insolvency. Doing Business. Retrieved from http://www.doingbusiness.org/data/exploretopics/resolving-insolvency [assessed 02 June 2017].
19. Ormotsadze, M. (2016, May 27). Ukrainian Roulette: Clients Lost Over UAH300bn in Banks Bankrupted. Forbes Ukraine, Retrieved from http://forbes.net. ua/business/1416943-ukrainskaya-ruletkagrazhdane-i-biznes-poteryali-v-bankahbankrotah-svyshe-300-mlrd-griven [assessed 02 February 2017].
20. Harkavenko, V., & Shapoval, Yu. (2017). «Moppig up» banking sector in Ukraine: the value for society and state. Ukrainian society, 1, pp. 108-123 [in Ukrainian].
21. Zymovets, V. (2010). State economy development finance policy. Кyiv: Institute for Economics and Forecasting of NAS of Ukraine [in Ukrainian].
22. A confidence crisis?. Restoring trust in financial services. (2011). Edited by John Springford. L.: SMF. Retrieved from http://www.smf.co.uk/wp-content/uploads/2011/07/Publication-A-Confidence-Crisis-Restoring-trust-in-financial-services.pdf [assessed
14 February 2017].
23. Crisis influence on real sector finances Ukrainian economy and improvement mechanism. (2014). In А.І. Danylenko (Ed.). Кyiv: Institute for Economics and Forecasting of NAS of Ukraine [in Ukrainian]
Last Updated (Monday, 13 November 2017 14:43)
