REPRODUCTION OF FIXED CAPITAL IN UKRAINE: SOME FEATURES AND RECOMMENDATIONS FOR PUBLIC POLICY

Abstract

Topicality. Ukraine's GDP has not reached the level of the early 1990s, and the competitiveness of the economy remains low. This is largely due to the state of the investment process. Generalized statistical data are usually used for its research. However, the situation at individual enterprises, especially in a transitional economy, is significantly different. To find out how the renewal of fixed capital takes place, to develop sound recommendations, it is necessary to analyze information concerning large groups of enterprises.Aim and tasks. The purpose of the article is to find out if there is a significant sector of enterprises with negative net investments in Ukraine. This will make it possible to give sound recommendations for improving economic policy.Research results. The article analyzes the reporting of 2.5 thousand industrial enterprises in Ukraine. It was found that more than a third of investments are in 5% of enterprises. At the same time, about 30% of them regularly make negative net investments. The existence of a significant sector of such enterprises has an extremely negative impact on the competitiveness of the national economy. It is substantiated that the main reasons for this situation are inadequate protection of property rights, a low level of competition and its unequal conditions in many markets.Conclusion. A significant reduction in the sector of enterprises with negative net investments is one of the most important conditions for increasing the competitiveness of the Ukrainian economy. This is possible as a result of reforms that will enhance competition, leveling its conditions, and reliable protection of property rights. The OECD Competition Assessment Toolkit should be used to remove anti-competitive regulations from legislation. In order to prevent a decrease in production and an increase in unemployment as a result of the bankruptcy of inefficient enterprises, it is necessary to take measures aimed at stimulating the development of the most dynamic companies and increasing their contribution to the economy, primarily by supporting gazelle firms and clusters.