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№ 4/2019

Nauk. pr. NDFI 2019 (4): 69–83https://doi.org/10.33763/npndfi2019.04.069

FINANCIAL AND ECONOMIC REGULATION

SHUBALYI Oleksandr ¹, KOROLENKO Mykola ², KOSINSKYI Petro ³, HRYNYK Iryna ⁴

¹Lutsk National Technical University
OrcID ID : https://orcid.org/0000-0002-9131-1896
²SESE “The Academy of Financial Management”
³Lutsk National Technical University
OrcID ID : https://orcid.org/0000-0002-3254-2379
⁴Lutsk National Technical University

Formation of the system of financial and economic incentives for processing industry development

The article deals with the formation of a system of financial and economic incentives for the development of processing industries. It is proved that in our country there is no such system for processing industry development based on local natural-resource complexes. The state financially stimulates the manufacturing of products (raw materials) rather than their processing. In particular, there are currently no programs in the Volyn region providing financial resources for the development of advanced processing facilities based on local natural-resource complexes. Processing enterprises in the region are forced to develop mainly due to their own capital and foreign direct investment. The own and attracted financial resources of processing enterprises of the Volyn region exceed the expenditures of local budgets for the development of the main raw materials industries. There is an under-financing of innovative activity of processing enterprises of the studied area, in particular from the state budget. Insufficient financial resources for the development of processing enterprises in the Volyn region affect the volume of production and sales of finished products, as well as the total value added of the processing industry of the region. The main problems and reasons for their occurrence are highlighted, as well as the directions of financial and economic stimulation of the development of processing industries at the regional level. The structure of the system of financial and economic stimulation for processing industry development based on natural-resource complexes of the region is developed.

Keywords:financial incentive, financial system, financial incentives, financial instruments, financial resources, processing industries, processing industry, system of financial and economic incentives

JEL: O13, Q50, Q58

Shubalyi O. . Formation of the system of financial and economic incentives for processing industry development / O. Shubalyi, M. Korolenko , P. Kosinskyi , I. Hrynyk // Наукові праці НДФІ. - 2019. - № 4. - C. 69-83.

Article original in Ukrainian (pp. 69 - 83)

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