Modeling and assessment of capital productivity parameters of Ukraine’s regions

Author:

Maksymchuk Maksym V.1ORCID

Affiliation:

1. Dolishniy Institute of Regional Research of NAS of Ukraine

Abstract

The article proposes a methodology for determining the factors of increasing the level of capital productivity and, accordingly, increasing the importance of this criterion in the overall productive capacity of the economy of the regions of Ukraine, substantiates the theoretical model of capital productivity, and conducts empirical verification of this model. A capital productivity level matrix was constructed, which includes key parameters grouped into three main sets of factors. The results of the conducted modeling indicate a partial strengthening of the negative trends of the effect of a decrease in the level of investment activity on capital productivity in 2021 compared to 2013. The article notes that despite the fact that increasing capital productivity is one of the main goals of investment activity, the relationship between investment and capital productivity is much more complicated and even unpredictable to a certain extent. This dependence is not necessarily linear and direct, in some cases it can have a non-linear nature and lead to negative inverse results, depending on the factors of the institutional and economic environment that has developed in different regions of the state. However, despite this, investment activities and increasing the level of capital productivity will play a significant role in the post-war reconstruction of the economy of Ukraine and its regions. Ways to increase the level of capital productivity in the regions of Ukraine are proposed, in particular: more intensive use of production capacities; priority development of less capital-intensive sectors of the economy; intensive use of investment stimulation mechanisms; increasing the share of types of economic activity with high added value; promoting the development of medium-sized and small cities, and not only large urban areas, the development of which requires significant investments in infrastructure; reduction of investment expenditures related to governance.

Publisher

State Institution - Institute of regional research named after M.I. Dolishniy of NAS of Ukraine

Reference19 articles.

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