Capital construction as a factor of economic development

Capital construction, acting as an indicator of the economic development of the national economy, requires constant analysis and attention. Together with mechanical engineering, capital construction forms the material basis of investment and production activity and ensures the formation and development of the production potential of the material sphere and its infrastructure. This is clearly evidenced by the figures, according to which 50 % of capital investments are investments in buildings and structures and almost 40 % of capital investments are directed to the purchase of machines, equipment and vehicles. Positive trends in the development of the construction industry in recent years are characterized by the growth of the index of construction products. This indicator increased by 36.1 % in 2019 compared to 2015, although its growth rate decreased in 2020 and 2021. The success of the construction market in general depends on filling it with investment resources. The volume of capital investments in construction for 2021 was only 9.8 % of the total volume of investments. The small flow of investments in the construction industry is primarily due to the fact that today it is very cost-intensive. The analysis of the structure of capital investments by sources of financing showed that structural changes in the investment process in 2015-2021 occurred with certain changes in the structure of sources of financing, which made it possible to draw the following conclusions: the main source of capital investments (at the level of two thirds) is own funds of enterprises; there is a slight but stable increase in the volume of capital investments at the expense of state and local budgets. For its further development, the construction industry needs significant capital investments, the sources of which can be both domestic and foreign investors. The majority of researchers and experts are inclined to the opi­nion that one of the means of development of capital construction, which makes it pos­sible to attract significant private financial resources, in particular international ones, is a public-private partnership.

Keywords: capital construction, investments, construction industry, capital investments, public-private partnership.

doi: 10.32403/1998-6912-2023-1-66-226-233