The modern paradigm of public investment research

Анотація

Public investment is the expenditure of the public sector (national and local authorities) on the creation of infrastructure that is state (or municipal) property with a term of use of more than one year. The sources of financing may include state or local budget funds, borrowed funds, funds of state or municipal enterprises, and fees charged to infrastructure users. Public investment is usually measured quantitatively, annually, as a percentage of total national income over a given period. Public investment can also take the form of traditional infrastructure projects or public-private partnerships, which is most common in Ukrainian practice. Public investment management is becoming a prerequisite and the general goal of socio-economic development. That is, structural changes supported by public investment management institutions ensure economic growth, and their implementation is regulated by the criteria for ensuring the economic security of the state. The article proves that public investment management is a multifaceted category reflecting a socio-economic phenomenon and is considered as a motive and purpose of functioning of macro-systems; the level of autonomy (independence) of the economy, which ensures the achievement of the aggregate vector of interests of the structural elements of the macro-system; a qualitative characteristic of the economic system, which allows assessing its viability in the context of transformational changes. Public investment management is also a tool for achieving the goals of economic, investment, and budgetary policies, and at the same time is a tool for managing public finances. The impact of public investment on the country’s economic development and the welfare of the population directly depends on the goals and expected results of investment at the national and subnational levels. The quality and effectiveness of public investment management directly impacts the achievement of sustainable development goals through the planning, allocation, and implementation of relevant infrastructure investment projects. Public institutions have a crucial impact on both the effective implementation of public investment and the promotion of private investment in infrastructure projects. This means that even the implementation of publicly funded infrastructure projects requires the participation of private companies, which will carry out the work at the expense of public investment. Therefore, without appropriate protection, the public investment system cannot work effectively.

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