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Concept of Industry 4.0 includes the creation of cyber-physical systems, capable to decentralized control over production, sales, etc., as well as self-education and self-development. Such systems' functioning requires similar "smart" technologies for information storing and distributing. Due to decentralization support, ensuring cybersecurity for cryptocurrency and creating environment for "smart" contracts, blockchain was considered as a fast solution. But blockchain's projection from the narrow scope of digital money to general purpose technology for industry and public sector faced serious difficulties. Some of them can be overcome by partial improving within the present generation of blockchain (e.g. - amending consensus' algorithms). Others require significant transformations of the core technology, coupling it with other innovations in computer science and industry. Difficulties of transition phase gave rise to criticism and even led to rejections to use blockchain in practice. Then some hybrid solutions appeared, which took only a part of blockchain's innovative idea (blocks-organized ledger) and implanted it onto old-fashioned technologies (abandoning the idea of distributed architecture). It is offered to consider such solutions as an inferior "quasi-blockchain". The evolution of blockchain has been studied and it has been proven that the development of its decentralized versions is most compatible with concept of Industry 4.0. However, industrial application of such versions, as it is shown in the paper, is hampered by the internal contradictions: blockchain "trilemma" plus inefficient energy use. Prospects for getting out of "blockchain trilemma" impasse have been explored, including some modern innovative solutions, such as the Level-2 protocol (Lightning Network). The evolution scenarios for such innovations are described. A classification, which links blockchain to classical distributed databases and takes into account the logic of their development, is proposed. The most promising fields for blockchain industrial applications, including digital invoices (e-Invoice) and Industrial Internet of Things, are studied. The research, conducted in the paper, has helped to develop a criteria to select and optimize specific blockchain solutions for industrial applications. [ABSTRACT FROM AUTHOR]

Big Data and Analytics is one of the key technologies, on which the digital transformation of the economy is based. The implementation of this technology into production would allow optimizing product's quality, reducing energy consumption, and improving the maintenance of equipment, manufacturing and management systems. Use of Big data in the public sector is seen as a tool for building a safer society, enhancing the administrative functions' performing, forecasting and reducing government spending. In this regard, the paper identified the advantages and barriers to the implementation of Big data in activities of enterprises and organizations; analyzed the main fields of companies' operations that offer technical support and other services, related to the use of Big Data. It has been established that a new direction of business activity, based on management and analysis of Big data, is the most dynamic and growing segment of the IT industry. It is revealed that now there is a shortage of state-recognized statistical information on the use of Big Data and Analytics in enterprises' activities and their impact on the final output of goods and services in an economy. Based on the results of the analysis, the paper offered to improve the definition of the term "goods" in the Classification of Economic Activities DK 009: 2010 of the National Classifier of Ukraine and to pay attention to indicators that can act as markers for analyzing the development of the Big Data's domestic market: the number of companies, operating in the field of Big Data and Analytics (Big Data vendors); amount of income of these companies from the production of equipment and software for Big Data and Analytics; the number of companies and enterprises, which are used Big Data and Analytics in their business (size, activities, regions); amount of investments in Big Data; the share of companies' income, generated by the Big Data use, etc. [ABSTRACT FROM AUTHOR]

In recent years, the economic crisis has engulfed underground coal mining, which is caused both by the high level of costs characteristic and by the unfavorable situation in the coal markets in the form of established low prices for coal products. Bankruptcy has befallen even world-class companies. At the same time, in the 1990s, Ukrainian practice was enriched by the experience of corporate development of a mine field, related to the interaction within a single mine of a private firm that develops its own part of mine field with own equipment, and a state-owned enterprise that provides the company with paid transportation and winding cargo services, ventilation, drainage and energy supply till to sanitary services of personnel. As a result the traditional hierarchical order of management, when one firm owns the mine and services it, has changed to a heterarchical one. Despite the fact that the practice of corporate development of the mine field received a certain scientific generalization, the externalities, inherent in the appearance of the hierarchies, were ignored. Positive externalities in microeconomics are described in the form of Malinvaud's example, on the basis of which a study was later carried out to investigate the possibility of increasing the efficiency of two government agencies interacting in a single project (the theory of gift exchange as the embodiment of the externalities market). The aim of the paper is to translate the scheme of the example of Malinvaud to the practice of interaction between two firms, involved in coal mining in one mine. Subject of research is to define optimal conditions for the functioning of two firms, which activity generate the effect of externalities. The results and conclusions of the paper are: the use of heterarchies in the mining industry makes it possible to achieve equilibrium and Pareto optimality, contributing to an increase in the economic efficiency of enterprises, operating in conditions of increased unprofitable risks. [ABSTRACT FROM AUTHOR]

Despite the reputation of VAT as a convenient tool for accumulation of significant amounts of tax revenues to the budgets with relatively low administrative costs, the broad use of new information and communication technologies and the spread of e-commerce throughout the world considerably affects this tax's efficiency, increases the risk of non-taxation or double taxation of operations, made in the framework of international trade, and violates the principle of fairness between goods and services, traded (provided) offline and online. In this regard, this paper outlines the main list of issues, that arise when using VAT to ecommerce transactions (especially - international ones), and describes main approaches, that are planned to apply or are already applied by the leading countries in the context of economical development and e-commerce. In general, international organizations (OECD, EU) have confirmed that e-commerce transactions are subject to VAT on a destination principle, and all sellers must be registered for VAT purposes in the countries, where their clients are located. However, there are still problems of international co-operation and coordination, related to the VAT application to international transactions. For less developed countries, emerging economies, and countries, that are planning to become EU member-states (such as Ukraine), not only the problems of applying VAT to ecommerce transactions, which are not solved in the most developed countries, must be addressed, but also those, that impede their economic and social development. Based on the results of the analysis, the paper offers recommendations on improving the legislation on e-commerce taxation in Ukraine and general recommendations that should contribute to the development of this type of trade in the country. [ABSTRACT FROM AUTHOR]

Approximately from 2010-2011 in the advanced economies of the world (from the standpoint of economic and technological development) there is a discussion on the need of transition to a new technological mode, known as "Industry 4.0" or "smart industry". This new mode implies a shift to consumer-oriented production based on cyberphysical systems, the widespread use of the Internet of things, the Industrial Internet of Things and Information and Communication Technologies (ICT). The above terms are relatively new, their interrelation and interdependence in different sources have different meaning, which makes it difficult to conduct an analysis of these phenomena, their cross-country comparison and perception by economic agents. This could adversely affect the development of state concepts and programs, aimed at transferring the country's economy to a new technological mode. Given this ambiguity in the interpretation of terminology, an in-depth study of ICT essence at the present stage of their development, their relationship with Internet of Things, Industrial Internet of Things, cyberphysical systems, as well as conditions, under which ICT development in countries of the world is stimulated, was conducted. For its disclosure, the paper uses etymological and semantic analysis, the method of comparison, elements of the historical approach in defining the essence of ICT concepts, the ICT sector, the ICT infrastructure, synthesis, induction and deduction methods in identifying conditions, conducive to the further development of ICT. As a result of the study, an author's definition of the term "ICT" was offered, the concepts of ICT sector and ICT infrastructure were refined. It was found that ICT alone does not solve economic and social problems, but can be a highly effective tool for mitigating them in the presence of a developed ICT infrastructure and a sustained economic and political situation in the country. Also the paper briefly describes the state of ICT in Ukraine in comparison with the leading countries in this sector and suggests some general recommendations for improving the situation. [ABSTRACT FROM AUTHOR]

The vulnerability of the world economy to financial and economic crises, the growth of global instability and uncertainty increase the need for long-term national planning and effective anti-crisis measures. Their development based on the analysis of foreign experience allows one to use achievements of specific government programs and strategies, as well as to take into account mistakes of predecessors in the development and implementation of their own smart strategies for industrial development without unnecessary costs and increased risks. This paper is a continuation of the area of scientific research, conducted in the Institute of Industrial Economics of the NAS of Ukraine, and takes into account the country's European integration priorities and the type of national innovation system. It is aimed at searching and summarizing the best practices of smart transformation of the industrial sector of the European Union, suitable for implementation in the institutional conditions of Ukraine. In the process of analysing the European experience in the development of the smart industry, main initiatives (European and national levels) in the field of cooperation between government institutions, research institutions, the business environment and the population, aimed at developing smart technologies and stimulating investment activity of the private sector, were considered: applied programs of Public-Private Partnerships "Factory of the Future", "Sustainable Processing Industry through Resource and Energy Efficiency", "ICT Innovations for Small and Medium Enterprises of the Manufacturing Industry", "Smart Anything Everywhere", "Public- Private Partnerships in the Field of Information and Communication Technology and Vanguard Initiative for New Growth through Smart Specialization". On the example of individual smart strategies, the activity and current progress of the economic and technological leaders of the European Union (including Germany, Great Britain, Italy, Spain, France, Sweden, etc.) were evaluated in terms of the practical implementation of the stated strategic goals. The main similarities and differences between the priorities, target audience, models and funding volumes of EU smart strategies are identified, depending on the starting institutional conditions and current challenges of specific national economies. Possibilities of using the best European practices for the development of smart industry in Ukraine and the need to establish clear quantitatively measurable national goals in this area, as well as the creation of effective mechanisms for monitoring and evaluating the effectiveness of innovative projects, are identified. [ABSTRACT FROM AUTHOR]

The new industrialization and digitalization of the world economy, the high level of uncertainty and complexity of cause-and-effect biosphere relationships define a significant time lag in emergence of negative consequences, caused by anthropogenic interference in ecosystems. Environmental foresight as a method of early identification of potential challenges and risks, associated with the environmental issues of economic growth, allows to increase the flexibility and speed of anti-crisis response, the national development strategy's validity and effectiveness. Therefore, the analysis of the accumulated experience of environmental foresight practice, the identification of the most common approaches and methods, revealing their strengths and weaknesses, a clear and objective view of current priorities and environmental markers at the global and national level are of particular importance. The paper provides an overview of individual long-term and large-scale projects of environmental foresight in a number of foreign countries. These include: strategic studies by the United States Environmental Protection Agency, analytical reports by the Intergovernmental Panel on Climate Change, and the Millennium Ecosystem Assessment. The horizon scanning results of global environmental challenges in 2010 and 2019 were presented. An approach to assessing the "environmental dimension" of sustainable development in the Foresight of Ukrainian economy framework was considered. The promising economic clusters foresight was based on the Delphi method and SWOT analysis of the Ukrainian economy in terms of developing its competitive potential. The review showed that, despite the extensive foresight tools (up to 30 varieties), the most universal and frequently used, including in the environmental sphere, are methods of horizon scanning, the Delphi method and scenario analysis. These methods are widely known, have been successfully tested in such areas as military intelligence, public policy development, strategic business planning, and continue to improve and evolve. Their general methodological limitation is the subjectivity of expert assessments. However, this to some extent compensates through attracting a wide range of specialists and new opportunities, provided by the digital economy. These include free access to online libraries, statistical databases, websites of national and international organizations, remote communication tools, and "trainable" search engines on the Internet. [ABSTRACT FROM AUTHOR]

To confirm the hypothesis of the existence of several characteristic types of supranational innovation systems (SNIS), which can be found and identified, and to which all national macroeconomics in the world belong to with more or less degree of approximation, national and foreign experience in the development of appropriate classifications was considered. That includes: threelevel taxonomy of national innovation systems (NIS) of the world (dated from 2005) with a special emphasis on innovation, dissemination of information and knowledge; two-level taxonomy of NIS of technologically developed OECD countries (dated from 2006); as well as the classification of tax populations, dated from 2018 (European, Chinese-East Asian, Indian-South Asian, Maghreb-middle East) and based on the "long" development trends. The considered approaches to supranational systems' classification allow to estimate in detail their similarities and differences, depending on the structural elements, as well as the "weight" or the degree of influence of each main element on the final efficiency. However, these examples are more specific and narrowly focused than the developed typology of the SNIS-2018. The alternative scientific and methodological approach, offered in the paper, which is made on the basis of cluster analysis of 95 countries of the world, different in terms of economic and technological development, as well as geographical location, allows us to determine four distinctive types of SNIS in the context of the "Quadruple helix" model - co-evolutionary interaction of scientific, educational, industrial, economic, political and socio-cultural complexes. According to the proposed taxonomy has been allocated: type A SNIS - "developed countries with primarily inclusive institutions" - is a highly efficient type of innovative systems, which occupies the 1st place in the majority of classification criteria, except for the development of socio-cultural environment (2nd position); type B SNIS - "developing countries with mixed extractive-inclusive institutions with a strong socio-cultural component (predominantly Muslim and Buddhist-Hindu types)" - an average efficient type of innovative systems, which occupies the 1st place in terms of socio-cultural development, the 2nd - in terms of production, economic and political situation, the 3rd - in terms of the development of scientific and educational complex; type C SNIS - "developed countries and developing countries with mixed extractiveinclusive institutions with a strong informal component (including post-Soviet type)" - is a weakly efficient type of innovative systems, which mainly occupies the penultimate (3rd) place in most classification criteria, except for scientific and educational (2nd position) ones; type D SNIS - "developing countries with primarily extractive institutions" - is a lowefficient type of innovative systems, which occupies the last (4th) place in all classification criteria, forming the lower limit of the estimated range. The current situation of Ukraine in the context of the developed typology was characterized as follows: Ukraine belongs to type C SNIS; key indicators of the optimized sample lag behind the image of the average leader in its cluster; most of the target indicators belong to the group of state-political complex, which characterizes the low level of efficiency of national socio-economic institutions; according to the indicators of scientific and educational complex Ukraine's position is not significantly inferior to the leaders. [ABSTRACT FROM AUTHOR]

The paper considers the monetary policy of leading Central Banks of the world that have been successfully used to overcome the global financial and economic crisis of 2008-2009 and now is also an important determinant of the modern development trends in the global economy. The last decade (the last ten years of the XXI century) is the period of the Fourth industrial revolution. But at the same time, this is a period of global spread of financial instability, including overcoming the consequences of the global financial and economic crisis of 2008-2009. Advanced developed countries, which today are the world's technological leaders in Industry 4.0, managed to overcome this crisis, primarily through monetary mechanisms. For this purpose, a non-traditional monetary policy was invented and applied for the first time, which included: quantitative easing with a corresponding rapid growth of Central banks' liabilities; de facto proactive maintaining a plurality of their goals, including ensuring financial stability and reducing unemployment; expanded participation of Central banks in financing government budget deficits with blurring the difference between monetary and fiscal policies. The measures taken helped to overcome the recession in the developed world and the transition to the trajectory of an economic growth. Current measures to normalize monetary policy, which the United States began, provide for a gradual increasing in the key interest rates and shrinking balance sheets of central banks. However, de facto, in much of the developed world (EU, Japan) the era of unconventional monetary policy is still going on. In general, the impact of these policies can be assessed in different ways. But it is difficult to deny two main conclusions. First, when it is necessary to overcome obstacles to the economic development, specialists and politicians of advanced countries do not hesitate to abandon market dogmas and apply new, non-traditional regulatory instruments, which were previously considered unacceptable. And the second conclusion is that, as a result, among other things, of these nontraditional instruments' implementation, the U.S. Dollar and the Euro have retained their leadership among the world currencies. This, in turn, means that the United States, as well as other advanced countries, that are a part of a narrow group of global monetary centres, despite the negative consequences of industrial offshoring, retains the chances of holding a leading position in the field of advanced industrial technologies, since these technologies are no longer just cyberphysical, but cyber-financial-physical. [ABSTRACT FROM AUTHOR]

The article identifies the factor of production, associated with smart industrialization, and provides modeling results of the corresponding production function on the example of manufacturing industry in Germany, as a country where the "Industry 4.0" development program has been announced and is being implemented at a nationwide level. It is argued that the existing approaches that takes into account scientific and technological progress within the design of production functions are not suitable for modeling the transformation of the impact of production factors in the process of smart industry formation, since scientific and technological progress in most papers is represented not by a specific measurable indicator, but simply by a natural series of numbers, reflecting the part of the change in production that is not explained by changes in the factors considered. It has been found that in German manufacturing industry output is growing while labor and capital expenditure decreases, which indicates the influence of at least one more factor related to the transition to the new technological mode - the smart industry. The difficulties of assessing the impact of the "smart factor" on production have been identified: both objective (the interdependence of computerization factors and the difficulty of distinguishing the contribution of each of them) and subjective (complete absence or fragmented statistical information). Based on the analysis of statistics, it has been found that the costs of software and databases are the most accurate indicator, reflecting the impact of the computerization factor on the output. A model, that is a modification of the Cobb-Douglas production function, has been designed, in which the added value in the processing industry is used as the endogenous variable, and the number of hours worked (labor factor), the cost of machinery and equipment with a 1 year lag (capital factor) and the cost of software and databases (computerization factor) are the exogenous factors. When analyzing the modeling results, authors found that computerization has turned into an important production factor and demonstrates the potential to replace other factors of production - labor and capital. The model can be used to substantiate the directions of smart industry development at the macro level, as well as the basis for developing criteria for assessing the level of enterprise "smartness" at the micro level. [ABSTRACT FROM AUTHOR]

The key features of the concept of Industry 4.0 development at the enterprises of machinebuilding industry were singled out. The analysis of mathematical models on classes of typical tasks for use at the construction of smart enterprises in the machine-building industry were carried out. It was determined, that in the process of ensuring the innovative development of machinebuilding enterprises within the Industry 4.0 framework it is necessary to use mathematical models, appropriate to machine vision technologies, robotic equipment, automated and intelligent production and control systems within the framework of enterprises’ cyberphysical systems. Such cyberphysical systems should be connected to the outside world through sensors and actuators, receiving data streams from the physical world, establishing and continuously updating the virtual twin of the physical world and including the possibility of interaction in reality according to instructions from the virtual sphere. This will allow ensuring the possibility of joint work, adaptation and development of all enterprise’s systems to improve working conditions, product quality, reduce labour requirements and increase the efficiency of manufacturing process of machine- building enterprises. The introduction of the above classes of mathematical models within the framework of cyberphysical systems must be carried out according to innovations in machinebuilding enterprises, which will ensure the automation of manual labour, the renewal of the already used innovative technologies and their unification in a single information space. The resulted models demand adaptation and the further development according to those innovative decisions, which will define a management of specific machine-building enterprises, depending on the specificity of the enterprise. Recommendations were given to the heads of machine-building enterprises on the use of mathematical models in the process of introducing the concept of smart-enterprises in the Ukrainian machine-building industry. Prospective directions of research were outlined in the paper. [ABSTRACT FROM AUTHOR]

Banking supervision, which is important for the stability of the banking system and the effective organization of lending to business entities, is complicated and acquires new functions due to the fact that banking groups have begun to actively carry out cross-border activities. The current restructuring of the banking sector in the EU represents a fundamentally new stage of financial integration, which includes the delegation of authority and the granting of sovereign rights to national governments to achieve pan-European values. Individual EU member states have already taken their own steps to mitigate and overcome negative consequences of the global financial and economic crisis, most often related to the provision of government loans and government guarantees. In some cases, positive results were achieved, in particular, thanks to the measures, taken by the banking group itself (when the subsidiary bank is the key element for the group's survival), as well as the measures, taken by several countries (when the parent bank and its foreign subsidiary banks are of system importance for several countries). However, in general, the achieved results are still unsatisfactory, which raises the question of the need to strengthen the coordination of national and supranational policies in this area. To this end, the paper explores the dynamics of the role and instruments of banking supervision for coordinating national policies of the EU member states. The analysis shows that in a number of cases efforts, aimed at eliminating the consequences of the global financial and economic crisis, have led to undesirable side effects for the economies of other countries. The measures, taken to save cross-border banks, underlie the new realities in the field of coordination of banking supervision policies. The results of the research showed, that the main goal of improving supervision coordination is to reduce the side effects of bank rehabilitation measures. A new culture of supervision is designed to reduce costs for taxpayers and the likelihood of a new crisis. It is expected, that now the banking system will better perform its functions to stimulate the development of new industry and ensure sustainable economic growth in the long term. [ABSTRACT FROM AUTHOR]

In the paper the necessity of transferring of authority related to the development of industrial potential and innovation activity in the economy to regional and local selfgovernments is substantiated. Taking into account the commitment of Ukraine on the Association Agreement between Ukraine and the European Union to develop cooperation on policies in the field of industry and business on the basis of internationally recognized principles and practices in these areas it is proposed to introduce the concept of regional strategy of smart specialisation to the practice of elaboration and implementation of industrial policy in the regions of Ukraine. This concept is actively promoted for modern industrial and regional policies by the European Commission and used by many OECD countries. A key element of such strategies is an “entrepreneurial process of discovery” in the definition of strategic priorities and therefore essential to successful design of policy of regional industry innovation based development. This process utilizes entrepreneurial knowledge existing in a region or country and takes an entrepreneurial approach in the sense of focusing on market opportunities, differentiates from others, takes (and manages) risks and seeks for alliances to optimise the access to and use of resources (physical, financial, intellectual, market knowledge, etc.). This means that policy makers should involve all types of innovation actors (e.g. businesses, technology and competence centres, universities and public agencies, science and business parks, business associations and venture capitalists, NGOs, etc.) in an entrepreneurial process for the design of smart specialization strategies and assess their proposals for future development and investment. There is brief description of six steps of a smart specialization strategy elaborating in the paper. In conjunction with the application of the concept of smart specialisation in Ukraine it is also proposed to actively develop the clustering policy including such measures as promoting the formation and functioning of innovative industrial clusters. It is concluded that such industrial policy would mainly have horizontal nature with elements of sectoral interventions in cases of policy measures aimed at promoting innovation activities in specific clusters and sectors of the regional economy. [ABSTRACT FROM AUTHOR]

The paper proposes and approves the scientific and methodical approach that allows evaluating and predicting the volume of the shadow economy in the regions of Ukraine in the medium term. Complex economic and mathematical models of the shadow economy at the regional level, depending on the major factors of Doing Business, which determine its size, put in its basis. This allows justifying policies to reduce the volume of the shadow economy and improve the institutional environment. The following assumptions are the basis of the proposed methodology for assessing the size of the shadow economy in the region. The size of the formal economy of the country is the sum of the formal economy of its regions, and the shadow economy of the country is the amount of shadow economies of the regions (quantitative proof of this hypothesis is given in the paper). It is assumed that each branch has technical and technological, and institutional features that significantly influence potential and actual amount of the shadow economy. Psychological behavior of the population in different regions of the country has less impact on the "shadow" economy than on industry-specific. Thus, the size of the shadow economy in Ukraine's regions is defined by their economic structure, as well as system-wide factors that affect the behavior of economic agents (the reliability of institutions that protect property rights, investors rights, enforcement of contracts, the level of the tax burden, and others). The feature of the proposed approach is that it has developed scientific and methodological basis for the formation of primary information technology transformation from open sources on the functioning of the economy of Ukraine in the field and knowledge of the appropriate volume of the shadow economy. The main stages of this transformation are as follows: collection, processing, analysis and storage of raw data, formation of complex econometric models and their parameterization, performance of computational experiments, and interpretation of the results. The practical implementation of the proposed approach has been carried out on the empirical data of the Donetsk region. Software implementation of scientific and methodological approach has been carried out using Anylogic. [ABSTRACT FROM AUTHOR]

The paper substantiated that under the conditions of the digital revolution, which makes it difficult to perform tax control over income flows and expenses of enterprises, especially over cross-border ones, it is time to look for better alternatives to the taxation of enterprise’s profits. It is shown that not only a reduction in the corporate income tax rate and the provision of various preferences for investment and innovation activities, but also a radical change in approaches to taxation of corporate income, such as the transition to distributed profit tax or destination- based business cash flow tax can act as instruments of competition. The foreign experience of applying the distributed profit tax on the example of Estonia, Macedonia, Georgia and Latvia has been studied. It is justified, that the introduction of distributed profit tax instead of corporate income tax did not become such a factor that negatively affected economic events in the analyzed countries. Moreover, there is a reason to believe, that such «castling » contributed to the improvement of the situation, at least in one of the countries (Estonia). The analysis of the destination-based business cash flow tax as an alternative to the corporate income tax and the distributed profit tax were made. Differences between these types of taxes are demonstrated, their advantages and disadvantages are highlighted. It is shown, that the discussion of destination-based business cash flow tax indicates that alternative approaches to profit taxation are in the agenda in the countries of the world. This is also confirmed by modern studies, based on economic and mathematical modeling of situations, in which the corporate income tax rate is significantly reduced or the tax is completely eliminated. It is proved, that, based on the analysis of theory, international experience and the current situation in Ukraine, the introduction of a withdrawn capital tax will be the best alternative to the existing corporate income tax, which currently does not fulfill a stimulating function, but promotes corruption and evasion from payment to the budget. The results of calculations of possible budget losses from the replacement of the corporate income tax by the withdrawn capital tax are demonstrated. Possible measures to compensate such losses in the first years of the new tax introduction have been formulated. The necessity of continuing and deepening the analysis of the experience of countries, that have already switched to the collection of the distributed profit tax, as well as assessing the impact of introducing a withdrawn capital tax on attracting external and domestic capital investments using methods of economic and mathematical modeling, is validated. [ABSTRACT FROM AUTHOR]

The paper examines the issues of financing projects and programs on the development of a large city’s infrastructure. Specific features of the infrastructure of a large city are determined. They are the heterogeneity and asymmetry of development. Therefore, the task of the city administration is to manage existing infrastructure facilities, build new facilities, and overcome the existing asymmetry at the expense of own and additionally attracted financial resources. The main sources of financing programs and projects on the development of a large city’s infrastructure are the funds of the state and local budgets, and extrabudgetary funds. At present, the funds of the state and local budgets are not sufficient enough to provide financing in full. So, it is necessary to attract extra-budgetary funds by using the mechanism of public-private partnership, securities market, deferred tax payments, etc. The grounds are given in favor of using the territorial community’s property to provide the attraction of investments by issuing municipal securities. An important reserve of financing infrastructure is the cooperation of local authorities and business structures on the principles of social partnership. The investment climate and investment attractiveness factors contribute to attracting business resources for implementing projects on infrastructure development. Factors of investment attractiveness include the information transparency and mutual loyalty of authorities and business. To provide the information transparency the geoinformation systems should be used that contain useful and reliable information about possible investees. The proposed approaches of attracting additional financial resources will improve financial security and implementation of projects and programs on the development of a large industrial city’s infrastructure. [ABSTRACT FROM AUTHOR]

The paper studies the development of the Indian tax system since India became independent nation. We focus on how changes and developments in tax regulations and policies affect rapid economic growth in the country. Our focus is on direct and indirect taxes on industries in India and also on most important institutional tax problems. The key findings are as follows. Firstly, the Indian experience has shown that the tax liberalization in combination with other economic measures promote economic growth if focused not just on the general improvement of the institutional environment, but also on the accelerated development of material production industry. At the same time the existing shortcomings of the tax system is not a critical constraint to economic growth in the current period if, in principle, taxes are aimed at the development and broadly in line with local traditions of statehood. Secondly, the level of tax revenues in India nowadays is clearly inadequate to finance the state needs. At the same time, limiting its financial needs, the state contributes to the financial resources of economic entities. It is unlikely that India could surprise the world with such a high rate of economic growth if it had not happened the rethinking of the role of the tax system and its reform in order to create more favourable conditions for business. Secondly, the level of tax revenues in India nowadays is clearly inadequate to finance the state needs. At the same time, limiting its financial needs, the state contributes to the financial resources of economic entities. It is unlikely that India could surprise the world with such a high rate of economic growth if it had not happened the rethinking of the role of the tax system and its reform in order to create more favourable conditions for business. Thirdly, the implementation of tax solutions, which are considered as very effective from the perspective of the western theory and practice, has been faced with a lots of difficulties in specific institutional conditions of India. This fact is a strong confirmation that tax authorities cannot ignore or underestimate the influence of institutional and political factors on tax reform results. In many cases it turns out to be much stronger than the theoretical arguments and positive experience of other countries. And fourthly, the existing high tax rates do not reflect the actual tax burden. In the context of the formed institutional norms Indian business has developed and successfully applies its national recipe of tax burden optimization: through lobbying and using corruption schemes it achieves various tax preferences, as well as contributes to the preservation of the existing loopholes in the tax laws, and then legally avoids paying taxes. [ABSTRACT FROM AUTHOR]