IDEAS home Printed from https://ideas.repec.org/a/ssi/jouesi/v8y2021i4p713-729.html
   My bibliography  Save this article

The growth of the country’s economic security level based on the investment infrastructure development projects

Author

Listed:
  • Lidiia Karpenko

    (Odessa Regional Institute of Public Administration, Ukraine)

  • Mykola Izha

    (Odessa Regional Institute of Public Administration, Ukraine)

  • Iryna Chunytska

    (National University of the State Fiscal Service of Ukraine, Ukraine)

  • Andrii Maiev

    (Odessa Regional Institute of Public Administration, Ukraine)

  • Kateryna Hunko

    (National University of the State Fiscal Service of Ukraine, Ukraine)

Abstract

The article is dedicated to the question of providing investment development of the national infrastructure and adherence to the economic security level growth conditions. The authors determined the role of investments and the project orders in the development of the national infrastructure and formation of the national reforms investment support policy. While conducting the research, they built a model of investment interest simulation and scenarios of investors’ behavior, and analyzed the application of Monte Carlo technique regarding the investment projects. They developed a procedure model of Monte Carlo technique use for assessment of the investment projects at the given level of economic security. They generalized the methodological approaches to the practical application of Monte Carlo technique and method of historic simulations in assessment and minimizing the risks of the investment projects, which are carried out in the infrastructure industry of the country’s economy. The researchers studied the peculiarities of application of Monte Carlo technique and simulations method during the assessment and minimizing the risks of investment projects in coordinates of economic security. They offered conceptual foundations of probability and statistical assessment of the investment projects risks concerning the country’s infrastructure development in the given interval of economic security. They determined and provided a step-by-step order for calculating the expected cost NVP of investment projects within the national economic space and coordinates of economic security.

Suggested Citation

  • Lidiia Karpenko & Mykola Izha & Iryna Chunytska & Andrii Maiev & Kateryna Hunko, 2021. "The growth of the country’s economic security level based on the investment infrastructure development projects," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(4), pages 713-729, June.
    • Handle: RePEc:ssi:jouesi:v:8:y:2021:i:4:p:713-729
    DOI: 10.9770/jesi.2021.8.4(44)
    as

    Download full text from publisher

    File URL: https://jssidoi.org/jesi/uploads/articles/32/Karpenko_The_growth_of_the_countrys_economic_security_level_based_on_the_investment_infrastructure_development_projects.pdf
    Download Restriction: no
    File URL: https://jssidoi.org/jesi/article/850
    Download Restriction: no
    File URL: https://libkey.io/10.9770/jesi.2021.8.4(44)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Alkaraan, Fadi & Northcott, Deryl, 2006. "Strategic capital investment decision-making: A role for emergent analysis tools?," The British Accounting Review, Elsevier, vol. 38(2), pages 149-173.
    2. Massimiliano Mazzanti & Matteo Mazzarano & Andrea Pronti & Marco Quatrosi, 2020. "Fiscal policies, public investments and wellbeing: mapping the evolution of the EU," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 2(4), pages 725-749, December.
    3. Gollier, Christian, 2010. "Expected net present value, expected net future value, and the Ramsey rule," Journal of Environmental Economics and Management, Elsevier, vol. 59(2), pages 142-148, March.
    4. Isik Inselbag & Howard Kaufold, 1997. "Two Dcf Approaches For Valuing Companies Under Alternative Financing Strategies (And How To Choose Between Them)," Journal of Applied Corporate Finance, Morgan Stanley, vol. 10(1), pages 114-122, March.
    5. Jackson, Jerry, 2010. "Promoting energy efficiency investments with risk management decision tools," Energy Policy, Elsevier, vol. 38(8), pages 3865-3873, August.
    6. Richard S Ruback, 2002. "Capital Cash Flows: A Simple Approach to Valuing Risky Cash Flows," Financial Management, Financial Management Association, vol. 31(2), Summer.
    7. J. L. Morrow & David G. Sirmon & Michael A. Hitt & Tim R. Holcomb, 2007. "Creating value in the face of declining performance: firm strategies and organizational recovery," Strategic Management Journal, Wiley Blackwell, vol. 28(3), pages 271-283, March.
    8. Lefley, Frank, 1996. "The payback method of investment appraisal: A review and synthesis," International Journal of Production Economics, Elsevier, vol. 44(3), pages 207-224, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pierru, Axel, 2009. ""The weighted average cost of capital is not quite right": A rejoinder," The Quarterly Review of Economics and Finance, Elsevier, vol. 49(4), pages 1481-1484, November.
    2. Fernandez, Pablo, 2005. "Financial literature about discounted cash flow valuation," IESE Research Papers D/606, IESE Business School.
    3. Sanghyun Sung & Wooyong Jung, 2019. "Economic Competitiveness Evaluation of the Energy Sources: Comparison between a Financial Model and Levelized Cost of Electricity Analysis," Energies, MDPI, vol. 12(21), pages 1-21, October.
    4. Sureka, Riya & Kumar, Satish & Colombage, Sisira & Abedin, Mohammad Zoynul, 2022. "Five decades of research on capital budgeting – A systematic review and future research agenda," Research in International Business and Finance, Elsevier, vol. 60(C).
    5. Michael Dempsey, 2019. "Discounting methods and personal taxes," European Financial Management, European Financial Management Association, vol. 25(2), pages 310-324, March.
    6. Schauten Marc B. J., 2013. "Three discount methods for valuing projects and the required return on equity," Contaduría y Administración, Accounting and Management, vol. 58(1), pages 63-85, enero-mar.
    7. Fernandez, Pablo, 2006. "A general formula for the WACC: A correction," IESE Research Papers D/663, IESE Business School.
    8. Fernandez, Pablo, 2004. "The value of tax shields is NOT equal to the present value of tax shields," Journal of Financial Economics, Elsevier, vol. 73(1), pages 145-165, July.
    9. Claudio Loderer & John B. Long & Lukas Roth, 2010. "Implementing Fischer Black's Simple Discounting Rule," Journal of Applied Corporate Finance, Morgan Stanley, vol. 22(2), pages 60-68, April.
    10. Denis Babusiaux & Axel Pierru, 2009. "Investment project valuation : A new equity perspective," Working Papers hal-02469464, HAL.
    11. Fernandez, Pablo, 2003. "Equivalence of ten different methods for valuing companies by cash flow discounting," IESE Research Papers D/524, IESE Business School.
    12. Fernandez, Pablo, 2004. "Equivalence of ten different discounted cash flow valuation methods," IESE Research Papers D/549, IESE Business School.
    13. Richard Sweeney, 2014. "Equivalent valuations in cash flow and accounting models," Review of Quantitative Finance and Accounting, Springer, vol. 42(1), pages 29-49, January.
    14. Michael Dempsey, 2015. "Stock Markets, Investments and Corporate Behavior:A Conceptual Framework of Understanding," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number p1007, September.
    15. Dirk Beyer, 2018. "A matrix approach to valuation and performance measurement based on accounting information considering different financing policies," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 29(1), pages 37-61, March.
    16. Fernandez, Pablo, 2004. "Value of tax shields and the risk of the net increase of debt, The. Year 2004," IESE Research Papers D/544, IESE Business School.
    17. Christian Koziol, 2014. "A simple correction of the WACC discount rate for default risk and bankruptcy costs," Review of Quantitative Finance and Accounting, Springer, vol. 42(4), pages 653-666, May.
    18. Ludovico Alcorta & Morgan Bazilian & Giuseppe De Simone & Ascha Pedersen, 2012. "Return on Investment from Industrial Energy Efficiency: Evidence from Developing Countries," Working Papers 2012.35, Fondazione Eni Enrico Mattei.
    19. Fernandez, Pablo, 2007. "A more realistic valuation: APV and WACC with constant book leverage ratio," IESE Research Papers D/715, IESE Business School.
    20. Magni, Carlo Alberto, 2009. "Splitting up value: A critical review of residual income theories," European Journal of Operational Research, Elsevier, vol. 198(1), pages 1-22, October.

    More about this item

    Keywords

    economic security; national infrastructure; investment provision of development; capital investment project; Monte Carlo simulation analysis; risks of capital investment projects;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

    Statistics

    Access and download statistics

    Corrections

    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:ssi:jouesi:v:8:y:2021:i:4:p:713-729. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuela Tvaronaviciene (email available below). General contact details of provider: .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.