IDEAS home Printed from
   My bibliography  Save this article

Simulating fixed capital dynamics of industrial enterprises


  • S. Ishchuk


The author analyzes the dynamics of fixed capital in Ukraine on the whole, and for this country's industry, in particular, for the period of 2006-2013 by calculating the coefficients of renewal and disposal. The evaluation of the initial value of the indices of fixed capital and investments has been carried out, on which basis the shortcomings of the investment process in Ukraine were outlined. The tendencies of changes in the structure of the sources of capital investment were investigated as well. By modifying the formula for calculation of net profit of an industrial enterprise and based on the capital productivity and its annual growth rate, an equation for determining the critical index of value added growth has been obtained. The forecasting mathematical model for determining the fixed capital dynamics at the micro level provided the engagement of re-investment mechanism has been developed. This model reflects the potential production capacity of the industrial enterprise and its ability to raise its investment potential excluding external limitations (demand for products, conditions in the credit and resource markets etc.). As a result of author's calculations made on the annual financial reporting of the food processing in Lviv region of Ukraine, functional dependences between the indices of the growth of fixed capital and its exploitation efficiency on the one hand, and the share of operating costs in value added on the other hand, have been revealed.

Suggested Citation

  • S. Ishchuk, 2015. "Simulating fixed capital dynamics of industrial enterprises," Economy and Forecasting, Valeriy Heyets, issue 1, pages 131-139.
  • Handle: RePEc:eip:journl:y:2015:i:1:p:131-139

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eip:journl:y:2015:i:1:p:131-139. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Iryna Bazhal). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.