State financial support for bridge construction of territorial units

Authors

Kharkiv National Automobile and Highway University, Ukraine
https://orcid.org/0000-0002-4979-1101
Kharkiv National Automobile and Highway University, Ukraine
https://orcid.org/0000-0001-8693-3706
Kharkiv National Automobile and Highway University, Ukraine
https://orcid.org/0000-0001-9314-350X
State Higher Vocational School Memorial of Prof. Stanislaw Tarnowski in Tarnobrzeg, Poland
https://orcid.org/0000-0002-9196-8740
Kharkiv National Automobile and Highway University, Ukraine
https://orcid.org/0000-0001-5343-5161

Keywords:

State financing, financial support, state support, financing model, bridge construction

Synopsis

Financial security has always been, is and will be the most painful topic for those who do not have their own funds. This applies to absolutely all sectors of the economy, all industries, all countries. When it comes to large-scale projects, including bridge construction, for Ukrainian realities it becomes a real test. In the context of the COVID-19 pandemic challenges, the problem of financial security is particularly acute, especially when it comes to poor regions that are unable to selffinance themselves and survive only on state financial support. Therefore, this section considers the problem of distribution of state financial support on the basis of the integrated approach. The answer to the research question is given: «What components should be included in the methodology for determining state financial support.» The comprehensive method for determining the share of public funds, which takes into account the investment attractiveness of the region and its risk, is proposed. Since the problem of financing the construction and reconstruction of bridges is relevant for a number of countries, this technique was tested on the example of bridge construction. According to the results obtained, the state financial support includes territorial units that are not leaders in priority for an investor and have a high level of risk in investing funds. The integrated approach allowed to identify 10 territorial centers for funding, with the areas with the worst priority indicators receiving the largest share of financial state support.

References

Del Grosso, A., Inaudi, D., Pardi, L. (2002, July). Overview of European activities in the health monitoring of bridges. First International Conference on Bridge Maintenance, Safety and Management. Bercelona. Available at: https://www.researchgate.net/publication/229004961

Manukov S. (2018). Sotni evropeiskikh mostov nakhodiatsia v avariinom sostoianii. Available at: https://expert.ru/2018/08/17/sotni-evropejskih-mostov-nahodyatsya-v-avarijnom-sostoyanii/

Pucci, A., Sousa, H. S., Puppio, M. L., Giresini, L., Matos, J. C., Sassu M. (2019). Method for sustainable large-scale bridges survey. IABSE Symposium Guimarães 2019, Towards a resilient built environment, risk and asset management. Guimarães, 1034–1041. Available at: https://repositorium.sdum.uminho.pt/handle/1822/64363

Di Sarno, L., da Porto, F., Guerrini, G., Calvi, P. M., Camata, G., Prota, A. (2018). Seismic performance of bridges during the 2016 Central Italy earthquakes. Bulletin of Earthquake Engineering, 17 (10), 5729–5761. doi: http://doi.org/10.1007/s10518-018-0419-4

Pipinato, A. (2018). Extending the lifetime of steel truss bridges by cost-efficient strengthening interventions. Structure and Infrastructure Engineering, 14 (12), 1611–1627. doi: http://doi.org/10.1080/15732479.2018.1465103

Pelke, E. (2020). The main directions taken by road bridges in Germany in the twentieth century. Proceedings of the Institution of Civil Engineers – Engineering History and Heritage, 173 (1), 14–25. doi: http://doi.org/10.1680/jenhh.19.00002

Hendricks, A., Volovich, N. V. (2018). Renovatsiia v Vostochnoi Germanii: programma podderzhki «ischezaiuschikh» gorodov. Imuschestvennye otnosheniia v Rossiiskoi Federatsii, 5 (200), 26–42. doi: http://doi.org/10.24411/2072-4098-2018-15002

Ivanov, A. (2018). Pochti polovina latviyskih mostov – v plachevnom sostoyanii. Available at: https://mixnews.lv/transport/2018/08/16/po4ti-polovina-latvijskix-mostov-naxoditsyav-pla4evnom-sostoyanii/

Prato, C. A., Gerbaudo, C. F., Ceballos, M. A. (2002). Case Studies of Failure, Damage Assessment, and Repair of Multispan Bridges in Argentina. Rehabilitating and Repairing the Buildings and Bridges of Americas. doi: http://doi.org/10.1061/40613(272)14

Milani, С. J., Kripka, М. (2012). Diagnosis of pathologies in bridges of the road system in Brazil. Constructii, 13 (1), 26–34. Available at: https://www.researchgate.net/profile/Moacir_Kripka/publication/237101774_Diagnosis_of_pathologies_in_bridges_of_the_road_system_in_Brazil/links/0046351b88c3b4f50d000000.pdf

Esteves, I. C. A., Medeiros-Junior, R. A., Medeiros, M. H. F. (2018). NDT for bridges durability assessment on urban-industrial environment in Brazil. International Journal of Building Pathology and Adaptation, 36 (5), 500–515. doi: http://doi.org/10.1108/ijbpa-04-2018-0032

Khozhempo, V. V., Chernova, V. A. (2010). Brazil: current situation, problems and tendencies of innovative development. RUDN Bulletin, 4, 53–58. Available at: http://journals.rudn.ru/economics/article/view/11886

Backward Regions Grant Fund. Available at: https://www.indiastat.com/social-and-welfareschemes-data/27/backward-classes-schemes/27905/backward-regions-grant-fund-brgf/411976/stats.aspx

Backward Region Grant Fund for all Arunachal districts (2013). Available at: https://timesofindia.indiatimes.com/city/guwahati/Backward-Region-Grant-Fund-for-all-Arunachal-districts/articleshow/27236041.cms

Gil, N., Beckman, S. (2009). Introduction: Infrastructure Meets Business: Building New Bridges, Mending Old Ones. California Management Review, 51 (2), 6–29. doi: http://doi.org/10.2307/41166478

Parker, F. (1931). Constructing and Financing Toll Bridges. The Journal of Land & Public Utility Economics, 7 (2), 127. doi: http://doi.org/10.2307/3139049

Danette Bonano-Rodríguez, V. (2017). La colaboración público-privada para la provisión de autopistas, carreteras y puentes. Madrid. Available at: https://eprints.ucm.es/40889/

Hemming, R., Anderson, B., Alier, M., Petrie, M., Cangiano, M. (2006). Public-Private Partnerships, Government Guarantees, and Fiscal Risk. International Monetary Fund, 100. doi: http://doi.org/10.5089/9781589064935.058

Levchenko, Y. (2020). Teoretiko-metodologicheskie osnovy finansovogo obespecheniia mostostroeniia ukrainy v ramkakh gosudarstvenno- chastnogo partnerstva. Sofia, 272. Available at: https://www.academia.edu/41818798/ТЕОРЕТИКО_МЕТОДОЛОГИЧЕСКИЕ_ОСНОВЫ_ФИНАНСОВОГО_ОБЕСПЕЧЕНИЯ_МОСТОСТРОЕНИЯ_УКРАИНЫ_В_РАМКАХ_ГОСУДАРСТВЕННО_ЧАСТНОГО_ПАРТНЕРСТВА

Guo, S., Shi, Y. (2018). Infrastructure investment in China: A model of local government choice under land financing. Journal of Asian Economics, 56, 24–35. doi: http://doi.org/10.1016/j.asieco.2018.04.001

Kukacka, J., Kristoufek, L. (2020). Do «complex» financial models really lead to complex dynamics? Agent-based models and multifractality. Journal of Economic Dynamics and Control, 113, 103855. doi: http://doi.org/10.1016/j.jedc.2020.103855

Kukla, W. (2018). The infrastructure of road transport in poland in shaping the state security. Transport Economics and Logistics, 80, 139–148. doi: http://doi.org/10.26881/etil.2018.80.15

Britchenko, І. G., Cherniavska, T. A. (2017). Transport security as a factor of transport and communication system of Ukraine self-sustaining development. Scientific Bulletin of Polissia, 1 (1 (9)), 16–24. doi: http://doi.org/10.25140/2410-9576-2017-1-1(9)-16-24

Mattar Nasser, R., de Moraes, R. F. (2014). O Brasil e a segurança no seu entorno estratégico: América do Sul e Atlântico Sul. Brasília: Ipea.

Pashinsky M. (2020). Krupnye i dlinnye: v kakom regione strany bolshe vsego mostov. Available at: https://gmk.center/infographic/krupnye-i-dlinnye-v-kakom-regione-strany-bolshevsego-mostov/

Snieska, V., Zykiene, I. (2015). City Attractiveness for Investment: Characteristics and Underlying Factors. Procedia – Social and Behavioral Sciences, 213, 48–54. doi: http://doi.org/10.1016/j.sbspro.2015.11.402

Muczyński, A. (2020). Financial flow models in municipal housing stock management in Poland. Land Use Policy, 91, 104429. doi: http://doi.org/10.1016/j.landusepol.2019.104429

Terlikowski, P., Paska, J., Pawlak, K., Kaliński, J., Urbanek, D. (2019). Modern financial models of nuclear power plants. Progress in Nuclear Energy, 110, 30–33. doi: http://doi.org/10.1016/j.pnucene.2018.09.010

Smyrnov, O., Borysenko, A., Trynova, I., Levchenko, I., Marchenko, A. (2020). Determining the technical and economic parameters for designing hybrid power units for the budget segment. Eastern-European Journal of Enterprise Technologies, 1 (8 (103)), 43–49. doi: http://doi.org/10.15587/1729-4061.2020.194642

Sardak, S., Samoilenko, A. (2014). National Economies Intellectualization Evaluating in the World Economy. SSRN Electronic Journal. doi: http://doi.org/10.2139/ssrn.3508400

Akbulaev, N., Aliyev, Y., Ahmadov, T. (2019). Research models for financing social business: theory and practice. Heliyon, 5 (5), e01599. doi: http://doi.org/10.1016/j.heliyon.2019.e01599

Mindlin, Yu., Stolyarov, N., Novikova, N., Smolentsev, V., Tikhomirov, E. (2018). Evaluation of competitive advantages of regional economic clusters. Revista Espacios, 39 (31). Available at: https://www.revistaespacios.com/a18v39n31/a18v39n31p14.pdf

Urbancikova, N., Burger, P. (2014). Financing Clusters from Public Funds in the European Countries. Journal of Applied Economic Sciences, 9 (1 (27)), 148–157. Available at: https://www.researchgate.net/publication/262791406_Financing_Clusters_from_Public_Funds_in_the_European_Countries

Angelis-Dimakis, A., Dimaki, K. (2016). Identifying Clusters of Regions in the European South, based on their Economic, Social and Environmental Characteristics. REGION, 3 (2), 71. doi: http://doi.org/10.18335/region.v3i2.81

Coletti, M., Maria, E. D. (2015). The rush for cluster initiatives: cluster organization and management in Central Europe. International Journal of Entrepreneurship and Innovation Management, 19 (5–6), 327–342. Available at: https://www.deepdyve.com/lp/inderscience-publishers/the-rush-for-cluster-initiatives-cluster-organisation-and-management-0sfcKSigpR

Pro zatverdzhennia Metodyky otsiniuvannia roboty tsentralnykh i mistsevykh orhaniv vykonavchoi vlady shchodo zaluchennia investytsii, zdiisnennia zakhodiv z polipshennia investytsiinoho klimatu u vidpovidnykh haluziakh ekonomiky ta rehionakh i vidpovidnoi formy zvitu (2006). Nakaz Ministerstva ekonomiky Ukrainy No 245. 12.08.2006. Available at: https://zakon.rada.gov.ua/laws/show/z0459-04#Text

Vorkut, T., Volynets, L., Bilonog, O., Sopotsko, O., Levchenko, I. (2019). The model to optimize deliveries of perishable food products in supply chains. Eastern-European Journal of Enterprise Technologies, 5 (3 (101)), 43–50. doi: http://doi.org/10.15587/1729-4061.2019.177903

Orlowski, L. T. (2012). Financial crisis and extreme market risks: Evidence from Europe. Review of Financial Economics, 21 (3), 120–130. doi: http://doi.org/10.1016/j.rfe.2012.06.006

Kraus, K., Kraus, N., Pochenchuk, G. (2021). Principles, assessment and methods of risk management of investment activities of the enterprise. VUZF Review, 6 (3), 45–58. doi: http://doi.org/10.38188/2534-9228.21.3.06

Variation coefficient. Available at: https://wiki.loginom.ru/articles/variation-coefficient.html

Mustafakulov, S. (2017). Investment Attractiveness of Regions: Methodic Aspects of the Definition and Classification of Impacting Factors. European Scientific Journal, 13(10), 433. doi: http://doi.org/10.19044/esj.2017.v13n10p433

Levchenko, Y. (2019). On the way to European integration: How and who can invest in construction and reconstruction of Ukrainian bridges? Eastern Europe: Economy, Business and Management, 6 (23). doi: http://doi.org/10.32782/easterneurope.23-22

Collier, P., Pattillo, C. (2000). Investment and Risk in Africa. Investment and Risk in Africa. London: Palgrave Macmillan, 3–30. doi: http://doi.org/10.1007/978-1-349-15068-7_1

Abuzayed, B., Al-Fayoumi, N., Arabiyat, T. S. (2018). Does Investors’ Fear Gauge in a Mature Market Matter? Evidence from the MENA Region. The Journal of Wealth Management, 21 (1), 71–87. doi: http://doi.org/10.3905/jwm.2018.21.1.071

Lee, S. (2001). The risks of investing in the real estate markets of the Asian region. Working Papers in Land Management & Development, 6 (1), 30. Available at: http://centaur.reading.ac.uk/27114/1/0601.pdf

Singh, R., Bhattacharjee, J. (2019). Measuring Equity Share Related Risk Perception of Investors in Economically Backward Regions. Risks, 7 (1), 12. doi: http://doi.org/10.3390/risks7010012

Levchenko, I., Britchenko, I. (2021). Estimation of state financial support for non-priority territorial units using the example of bridge construction. Eastern-European Journal of Enterprise Technologies, 1 (13 (109)), 26–34. doi: http://doi.org/10.15587/1729-4061.2021.225524

Downloads

Pages

26-41

Published

November 30, 2021

License

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Details about the available publication format: PDF

PDF

ISBN-13 (15)

978-617-7319-45-9

How to Cite

Levchenko, I., & Dmytriiev, I. (2021). State financial support for bridge construction of territorial units. In O. Dmytriieva, I. Shevchenko, I. Britchenko, M. Tripak, I. Humeniuk, Y. Toporivska, S. Luchyk, V. Luchyk, I. Khoroshylova, O. Kryvoruchko, G. Poyasnik, I. Fedotova, O. Shersheniuk, M. Prokopenko, R. Vazov, Y. Dohadailo, I. Kyrchata, T. Kovalova, P. Lošonczi, T. Vodolazhska, T. Yarmak, O. Marusheva, O. Nepomnyashchyy, N. Bocharova, K. Dokunina, A. Popova, O. Diegtiar, M. Bezpartochnyi, I. Nadtochii, O. Pulianovych, & O. Skakalina, I. Levchenko & I. Dmytriiev (Eds.), PROBLEMS AND PROSPECTS OF DEVELOPMENT OF THE ROAD TRANSPORT COMPLEX: FINANCING, MANAGEMENT, INNOVATION, QUALITY, SAFETY – INTEGRATED APPROACH (pp. 26–41). Kharkiv: TECHNOLOGY CENTER PC. https://doi.org/10.15587/978-617-7319-45-9.ch3