Article
Developing World Investment

FORMATION OF THE INVESTMENT POTENTIAL OF THE CONSTRUCTION SECTOR (ON THE EXAMPLE OF UKRAINE)

Date: 06/21/2018
Author: Shlafman Natalya, Frolina Kateryna
Contributor: eb™ Research Team

The purpose of the article is to develop a methodology for determining the need for the amount of investment resources needed to build the investment potential (IP) of the construction sector in the example of Ukraine. The research methodology is economic and mathematical modeling. The results of the research: to build a model for analysis of the investment potential of the construction sector (IPCS) at the first stage, a selection of formalized factors was made, which were significant from the point of view of its growth, while modeling the IP as the initial characteristic of the model considered the growth rate of capital investments. In the second stage, the three-factor Cobb-Douglas production function was selected for the IPCS study; in the third stage, the necessary statistical information is collected; at the fourth stage - calculations were made, including: a functional dependence was constructed, allowing to analyze the effect of changing the value of one of the selected factors on the resulting factor. Conclusions: the conducted studies showed that market participants, investors can use the proposed methodology to determine the factors that influence the improvement of IPCS, the degree of their influence, the determination of the values necessary to achieve a given level of investment potential. In addition, the results obtained in this study can be used to further justify the priority areas of the state investment policy in the construction sector and to find effective tools for its implementation.