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Determining The Role Of Banks In The Financing Of Innovative Development Processes Of The Economy

Author

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  • Diana Zavadska

    (Department of Banking, Odessa National Economic University, Ukraine)

Abstract

The paper states that the success of Ukraine’s development, in the context of the transition to the model of Ukraine’s innovative development, contributes to a clear choice of priorities, among which the main thing is to ensure high rates of economic growth. The role of banks in reproductive processes is proved, which corresponds to modern problems of innovative development of the Ukrainian economy. The scientific approaches of various economic theories (neoclassical, monetarist, Keynesian, institutional, and the concept of financial mediation) are investigated. Advantages of studying the world experience of economic theory are to determine its connection with banking activities. But this does not entail the task of carrying out a complete historical study of all economic concepts relating to the impact on the economic development of the financial market itself and its subjects. The author highlighted the task of studying the relationship of development, participation of banking sector actors, and trends in the development of new paradigms in the theory of financial intermediation. The purpose of the article is to conduct an analysis of the theoretical provisions on determining the role of banks in financing innovative development of the economy. Methodology. The information base of the research is the results of scientific research results in determining the influence of the monetary sphere, interest rates, production, investments, and state on the processes of reproduction of the economy, published in monographic studies and publications in periodicals. During the research, methods of logical generalization, comparative analysis, system approach that takes into account the dynamic functional dependence between the state of the whole, development and the balance of its constituent elements are used. Results. The article emphasizes that the issue of activating the activity of banks in the investment market has become particularly significant. A critical analysis of research and development of leading scholars has led to the conclusion that there is no generally accepted idea of determining the place and role of banks in the growth of the country’s economy. It is established that the representatives of neoclassical theories of mediation most thoroughly considered the theoretical positions regarding the definition of the role of banks in the revitalization of economic growth. Practical implementation. The practical significance is in the fact that scientific research clearly, understandably, and consistently proves the importance of the participation of banks in reproductive processes. The results obtained in the future will be used to develop recommendations for defining the directions of interaction between banks andññ enterprises of the real sector of the Ukrainian economy in order to enhance the processes of bank financing of innovation development of the economy. Value/novelty. The article substantiates the special role of banks in economic growth, which is determined by the increase in business activity, the impact on the increase of money supply in circulation, the priority of credit operations aimed at the country’s crisis recovery.

Suggested Citation

  • Diana Zavadska, 2018. "Determining The Role Of Banks In The Financing Of Innovative Development Processes Of The Economy," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 4(3).
  • Handle: RePEc:bal:journl:2256-0742:2018:4:3:10
    DOI: 10.30525/2256-0742/2018-4-3-68-73
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    References listed on IDEAS

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    Cited by:

    1. Zavadska Diana, 2018. "Research of banks participation in crediting the needs of innovative development of industry in Ukraine," Technology audit and production reserves, 6(44) 2018, Socionet;Technology audit and production reserves, vol. 6(5(44)), pages 41-54.
    2. Aibota Rakhmetova & Gaukhar Kalkabayeva & Anar Kurmanalina & Zhanar Gusmanova & Gulzira Serikova & Baglan Aimurzina, 2020. "Financial-credit and innovative economic sectors: evaluation of macroeconomic effects of regulation and interaction sectors," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(1), pages 1224-1237, September.
    3. Maryna Korol & Ihor Korol & Olena Zayats, 2021. "Monetary Circulation And Banks In The Interpretation Of The Main Economic Schools," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 7(4).

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    More about this item

    Keywords

    economic theories; bank; role; financing; economic growth; innovative development;
    All these keywords.

    JEL classification:

    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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