LARYSA L. HRYTSENKO, OLEKSANDRA I. TVEREZOVSKA
Public-Private Partnership in the Investment Sphere
(original language – English)
https://doi.org/10.21272/mer.2020.89.12
With reference of crisis’s deepening processes at the present stage of national economy’s development there is emerge a reduction in investment by both the private sector and public institutions. At the same time, one of the important components of creating a favorable climate for Ukraine’s economic growth is the development of infrastructure. Up today a set of problems related to the fixed assets` obsolescence in almost all areas of economic activity, physical and moral deterioration of equipment, lack of investment in infrastructure, lack of budget funding for infrastructure investment and innovation projects, etc. Consequently, there is a need to find qualitatively new tools and mechanisms for investment development of Ukraine’s economy, also forms and methods of investment interaction between the state and business based on public-private partnership (hereinafter – PPP). The effective interaction between the state and the private sector in PPP together with well-organized risk management system will allow investing in the development of production capacity, accelerate industrial growth, expand domestic and foreign markets, improve the quality of goods, works and services, improve public services, improve investment attractiveness and business activity. The research in the article is devoted to public-private partnership, which arises as a result of partnership between the state and business. PPP today is one of the qualitatively new tool and mechanism for investment development of Ukraine's economy. The world practice of PPP projects’ application, their most widespread types in different countries is investigated in the work. At present PPP is quite widely, especially in Europe, in the implementation of socio-economic tasks, such as ensuring effective governance in the field of PPP, reducing burden on the budget, strengthening the social responsibility of business, improving the quality of life of the country`s population, etc.
Key words: public private partnership, cooperation of the state and business, state policy, investments, investing, investment projects.
Placed in №3, 2020.
Affiliations:
Larysa L. Hrytsenko, Doctor of Economics, Professor of the Department of Finance and Entrepreneurship, Sumy State University, Sumy;
Oleksandra I. Tverezovska, Student, Oleg Balatskyi Academic and Research Institute of Finance, Economics and Management, Sumy State University
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