State support of Investment Projects Within the Framework of an Agreement on the Protection and Promotion of Capital Investments: A Methodological Rationale

The subject of research is economic interactions related to the implementation of an investment project within the framework of an agreement on the protection and promotion of investments (hereinafter referred to as the APCI).Purpose: methodological substantiation of the expediency of providing stat...

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Main Authors: E. B. Tyutyukina, D. A. Egorova
Format: Article
Language:Russian
Published: Government of the Russian Federation, Financial University 2023-10-01
Series:Финансы: теория и практика
Subjects:
Online Access:https://financetp.fa.ru/jour/article/view/2394
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author E. B. Tyutyukina
D. A. Egorova
author_facet E. B. Tyutyukina
D. A. Egorova
author_sort E. B. Tyutyukina
collection DOAJ
description The subject of research is economic interactions related to the implementation of an investment project within the framework of an agreement on the protection and promotion of investments (hereinafter referred to as the APCI).Purpose: methodological substantiation of the expediency of providing state support measures to ensure the minimum profitability of an investment project implemented within the framework of the APCI.Objectives: to propose an indicator that reflects the minimum profitability of an investment project, the mechanism for its usage to determine state support measures, additional state support measures in cases where they are not sufficiently established in the legislation.Methods: analysis of approaches to determining the discount rate; statistical (observation, grouping, method of indicators) for calculating industry-specific ROIC values; content analysis to select state support measures.Results: it is proposed to use the ROIC indicator as the minimum profitability of a commercial investment project. The indicator was calculated according to the data of all organizations that are not subjects of medium and small enterprises operating in the period 2012–2021. The sample included 133 organizations that make up eight subclasses of Russian classifier of types of economic activity (pulp and paper production; production of fertilizers and nitrogen compounds; production of pesticides, etc.; production of paints, varnishes, etc.; production of pharmaceutical substances; production of medicines; activities in the field of telecommunications; development of computer software). Based on the data from 1011 observations, the median value of ROIC for each subclass was calculated, the reliability of which is confirmed by the approved minimum rates of return on invested capital for calculating the tariffs of regulated organizations. A mechanism is proposed for using ROIC to determine state support measures within the framework of the APCI, including: determining the median value of ROIC for foreign economic activity, calculating ROIC for an investment project, and determining state support measures by their ratio. As additional measures of state support within the framework of the APCI, it is proposed to establish tax preferences (lower tax rates, tax benefits, tax deductions), as well as accelerated depreciation of fixed assets. The proposed developments create a methodological basis for substantiating the provision of various state support measures within the framework of the APCI.
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spelling doaj-art-26a5bf50a6c24232902c4f9e4d7df5f22025-08-20T03:59:56ZrusGovernment of the Russian Federation, Financial UniversityФинансы: теория и практика2587-56712587-70892023-10-01275435410.26794/2587-5671-2023-27-5-43-541075State support of Investment Projects Within the Framework of an Agreement on the Protection and Promotion of Capital Investments: A Methodological RationaleE. B. Tyutyukina0D. A. Egorova1Financial UniversityFinancial UniversityThe subject of research is economic interactions related to the implementation of an investment project within the framework of an agreement on the protection and promotion of investments (hereinafter referred to as the APCI).Purpose: methodological substantiation of the expediency of providing state support measures to ensure the minimum profitability of an investment project implemented within the framework of the APCI.Objectives: to propose an indicator that reflects the minimum profitability of an investment project, the mechanism for its usage to determine state support measures, additional state support measures in cases where they are not sufficiently established in the legislation.Methods: analysis of approaches to determining the discount rate; statistical (observation, grouping, method of indicators) for calculating industry-specific ROIC values; content analysis to select state support measures.Results: it is proposed to use the ROIC indicator as the minimum profitability of a commercial investment project. The indicator was calculated according to the data of all organizations that are not subjects of medium and small enterprises operating in the period 2012–2021. The sample included 133 organizations that make up eight subclasses of Russian classifier of types of economic activity (pulp and paper production; production of fertilizers and nitrogen compounds; production of pesticides, etc.; production of paints, varnishes, etc.; production of pharmaceutical substances; production of medicines; activities in the field of telecommunications; development of computer software). Based on the data from 1011 observations, the median value of ROIC for each subclass was calculated, the reliability of which is confirmed by the approved minimum rates of return on invested capital for calculating the tariffs of regulated organizations. A mechanism is proposed for using ROIC to determine state support measures within the framework of the APCI, including: determining the median value of ROIC for foreign economic activity, calculating ROIC for an investment project, and determining state support measures by their ratio. As additional measures of state support within the framework of the APCI, it is proposed to establish tax preferences (lower tax rates, tax benefits, tax deductions), as well as accelerated depreciation of fixed assets. The proposed developments create a methodological basis for substantiating the provision of various state support measures within the framework of the APCI.https://financetp.fa.ru/jour/article/view/2394an agreement on the protection and promotion of capital investmentsstate support of investment projectsstabilization clausebudget subsidiesdiscount rate for the investment projectminimum profitability of the investment projectreturn on invested capital (roic)government support measures based on roic
spellingShingle E. B. Tyutyukina
D. A. Egorova
State support of Investment Projects Within the Framework of an Agreement on the Protection and Promotion of Capital Investments: A Methodological Rationale
Финансы: теория и практика
an agreement on the protection and promotion of capital investments
state support of investment projects
stabilization clause
budget subsidies
discount rate for the investment project
minimum profitability of the investment project
return on invested capital (roic)
government support measures based on roic
title State support of Investment Projects Within the Framework of an Agreement on the Protection and Promotion of Capital Investments: A Methodological Rationale
title_full State support of Investment Projects Within the Framework of an Agreement on the Protection and Promotion of Capital Investments: A Methodological Rationale
title_fullStr State support of Investment Projects Within the Framework of an Agreement on the Protection and Promotion of Capital Investments: A Methodological Rationale
title_full_unstemmed State support of Investment Projects Within the Framework of an Agreement on the Protection and Promotion of Capital Investments: A Methodological Rationale
title_short State support of Investment Projects Within the Framework of an Agreement on the Protection and Promotion of Capital Investments: A Methodological Rationale
title_sort state support of investment projects within the framework of an agreement on the protection and promotion of capital investments a methodological rationale
topic an agreement on the protection and promotion of capital investments
state support of investment projects
stabilization clause
budget subsidies
discount rate for the investment project
minimum profitability of the investment project
return on invested capital (roic)
government support measures based on roic
url https://financetp.fa.ru/jour/article/view/2394
work_keys_str_mv AT ebtyutyukina statesupportofinvestmentprojectswithintheframeworkofanagreementontheprotectionandpromotionofcapitalinvestmentsamethodologicalrationale
AT daegorova statesupportofinvestmentprojectswithintheframeworkofanagreementontheprotectionandpromotionofcapitalinvestmentsamethodologicalrationale