The Influence of the Fiscal Mechanism on the Investment Development of Economic Entities in the EU Countries and in Ukraine
Melnyk V. M., Rudenko V. V.

Melnyk, Viktor M., and Rudenko, Viktoriia V. (2022) “The Influence of the Fiscal Mechanism on the Investment Development of Economic Entities in the EU Countries and in Ukraine.” The Problems of Economy 2:145–162.
https://doi.org/10.32983/2222-0712-2022-2-145-162

Section: Finance and banking

UDC 336.225.6:658.152:061.1ЄС (477)

Abstract:
The fiscal mechanism, which serves as a means of implementing fiscal policy, through the organization of fiscal relations by changing the mechanisms for the formation of budget revenues and expenditures, directs established fiscal relations, manages the channels of passage and directions of fiscal flows, clarifies the proportions of the distribution of financial resources and, thus, ensures the regulation of investment development of economic entities. For Ukraine, in the context of its European integration aspirations, the study of the influence of key elements of the fiscal mechanism on the implementation of investments of enterprises in the EU countries is of particular relevance. Therefore, the article is aimed at forming a holistic view of the elements of the fiscal mechanism that lead to changes in investment processes at the micro level in the EU countries and in Ukraine, as well as conducting a correlation-regression analysis to identify the quantitative impact of the fiscal mechanism on the investment development of economic entities. In the course of the research, both the national and the European practice of taxation of enterprises was considered, the total tax burden on legal entities was calculated, the scale of capital transfers and government guarantees for enterprises in the EU countries and in Ukraine was assessed. Also, a correlation-regression analysis of the influence of elements of the fiscal mechanism on the investment development of economic entities in the EU and Ukraine was carried out, which showed that the greatest influence on the implementation of investments of enterprises was carried out by the scale of taxation of enterprises, as well as their generalized tax burden. Since capital transfers and government guarantees were provided only to individual legal entities, they did not have a significant impact on the total investments of enterprises in the EU countries and in Ukraine. As a result of the research, it is determined that in Ukraine, in order to ensure the investment development of economic entities, it is necessary to take into account the experience of the EU countries and improve those elements of the fiscal mechanism that have the greatest regulatory impact on investments. Such a component of the fiscal mechanism are taxes, especially in terms of effective provision of tax benefits.

Keywords: fiscal mechanism, investment development, taxes from enterprises, tax burden, capital transfers, government guarantees.

Fig.: 3. Tabl.: 6. Formulae: 1. Bibl.: 29.

Melnyk Viktor M. – Doctor of Sciences (Economics), Professor, Director, Educational and Methodical Center on Questions of Quality Educational (5a Metalistiv Str., Kyiv, 03057, Ukraine)
Email: melnik_viktor@ukr.net
Rudenko Viktoriia V. – Candidate of Sciences (Economics), Associate Professor, Candidate on Doctor Degree, Department of Finance named after V. M. Fedosov, Kyiv National Economic University named after Vadym Hetman (54/1 Beresteiskyi Ave., Kyiv, 03057, Ukraine)
Email: vitarudenko@ukr.net

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