№ 2023/1
Economy under the conditions of modern transformations
NYKYFORUK Olena Ihorivna1, KUCHER Serhii Vladyslavovich2, STASYUK Ol`ha Mykolaivna3, FEDIAY Natalia Oleksandrivna4
1Institute for Economics and Forecasting, NAS of Ukraine
2PrJSC "Ukrhydroenergo"
3Institute for Economics and Forecasting, NAS of Ukraine
4Institute for Economics and Forecasting, NAS of Ukraine
Multiplication effects of investment in a publicly significant infrastructure project
ABSTRACT ▼
The article features results of the assessment of the multiplier effects for the national economy from the implementation of construction project of the first stage of production facility of the Dniester HPP for the period 2010-2019. For this purpose, macroeconomic statistics were processes, on whose basis an information system of primary and calculated indicators was created using the data from the project documentation, which became the basis for calculations. A methodological approach was developed to assess multiplier effects at the macroeconomic level using the input-output balance, which is reflected in the symmetrical "input-output" table. The authors highlight the main indicators, through which the impact of the implementation of the construction project of the Dniester HPP on Ukraine’s economy is manifested, and which allow assessing its socio-economic significance: the multiplier of the output growth of the economic activity "Construction" at the expense of project investments, the GVA multiplier for all economic activities from project investments, and the GDP multiplier (public expenditure multiplier). According to the implemented approach, multiplier effects for the economy are calculated via additional output growth, additional value added growth, and GDP growth on project investments.
Based on the obtained results, it is proved that: 1) the implementation of the construction project of the first stage of the production facility of the Dniester HPP had made it possible to accumulate a multiplier effect for Ukraine’s economy, confirming in practice the theory of multiplier effects and proving the efficiency of public capital investments; 2) to the greatest extent, the multiplier effect from the additional investment growth in this project is generated within the economic activity "Construction", which is explained by increased demand for domestically produced construction products.
Keywords:multiplier effect, multiplier, investments, input-output tables, input-output balance, infrastructure project
JEL: E270; E220
| Article in English (pp. 83 - 98) | Download | Downloads :19 |
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