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The impact of budgetary resources of financing investment decision

Author

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  • Corina Nichitcin

    () (Moldova State University, Republic of Moldova)

Abstract

In this study we will present the impact of the budgetary resources regarding the decision of financing investment in Republic of Moldova. In order to finance investment activity, economic entities can benefit from the resources from the state budget. Through budgetary resources with impact on the decision of financing investment we understand all the financial resources available at the state level by which the public authority can influence the growth and development of various sectors of the economy in general and businesses in particular. Thus, as budgetary resources we consider subventions and subsidies paid in order to finance different business sectors for development of their financial support, fiscal facilities as well as taxes and dues. If subsidies and financial aids are intended for a limited circle of economic operators who satisfy some conditions or practice types of activities protected by the state, then fiscal policy influences the investment volume of the enterprise, exerting an impact on all economic agents.

Suggested Citation

  • Corina Nichitcin, 2014. "The impact of budgetary resources of financing investment decision," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 7(1), pages 102-108, June.
  • Handle: RePEc:rse:wpaper:v:7:y:2014:i:1:p:102-108
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    Keywords

    budgetary resources; investments; subsidies; taxes; finance;

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm

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