Investment Activity Of Forestry Entrepreneurship Subjects: Major Problems, Preconditions And Priority Directions Of Improvement

Vasyl Golyan, Tetyana Melnyk and Maksym Shestak
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Tetyana Melnyk: National University of Water Management and Nature Resources Use, Rivne
Maksym Shestak: National University of Life and Environmental Sciences of Ukraine, Kyiv

Ukrainian Journal Ekonomist, 2014, issue 6, 22-28

Abstract: It is determined that the economic crisis which took place in the 90th and in 2008 has negatively affected the dynamics of forest sector financing which prevents to fully use reserves of extended forest resource potential regeneration and complex use of wood raw materials. It is ascertained that during the 2001-2012 period no positive changes in the dynamics of capital investments in forestry towards positive changes occurred that indicates the necessity to extend the range of forms, methods and sources of investment support to carry out forestry and forest protection projects. The major problems of investment activity of state forestry enterprises are as follows: undeveloped infrastructure of untreated timber marker, absence of state and private off-budget funds of innovative development, excessive nationalization of property, absence of institutional background of using securitization technologies to attract additional investment resources. The major problems of investment activity of private forestry entrepreneur subjects are as follows: absence of partnership relations between private forestry enterprises and state ones, low level of investment resources concentration at the majority of forestry and primary wood processing enterprises. The priority directions of investment activity of forestry enterprises under modern conditions are: purchasing of modern hi-tech equipment for timber cutting and primary and secondary wood processing; formation of material and technical basis and information support of marketing channels of ready product promotion to target markets and maintenance service; formation of science and technology and production basis of plantation forestry; development of science and technical basis of stocking of non-wood raw materials and secondary forest products; increasing of infrastructural and nature-resource potential of recreational forest using and hunting sector.

Date: 2014
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