Economic instruments of state support for shipping

Abstract

The study analyzes modern economic instruments of state support for shipping in the world. Purpose. The purpose of the article is to investigate modern economic instruments of state support for shipbuilding at the international level with an emphasis on European experience, assess their effectiveness, and determine the most appropriate ones for the development of Ukrainian shipping. Methods. The study is based on the analysis of international organizations and institutions reports (OECD, European Investment Bank, European Commission, UN). An analysis and comparison of existing economic instruments of state support for shipping and shipbuilding companies was conducted, and a content analysis of strategic documents was carried out. Results. It was determined that the processes of decarbonization and digitalization of the shipping industry are impossible without significant investments and state support. A number of state and interstate economic instruments to support shipping were analyzed: EU financial assistance to the maritime industry through the EU Horizon Fund, tax breaks, state investments, state loan guarantees, the work of export credit agencies, support for shipping contracts through state banks, short-term and long-term investments in shipyards or shipping companies, "debt holidays", nationalization (full or temporary), etc. Conclusions. It was determined that the shipbuilding market is unique, complex and heterogeneous. As a result of the analysis of international experience, it was determined that state support for shipping is not only necessary, but also a normal condition for the functioning of the industry. With the help of indirect state support instruments, it is possible to support depressed companies, smooth out cyclical fluctuations in the industry and compensate for the impact of external negative factors, including international financial crises or global pandemics. The practical significance of the study lies in substantiating approaches to the choice of economic instruments for state support for shipping. It was found that bilateral support, both for shipbuilding and shipowners, with the involvement of European institutions, is extremely necessary for the development of Ukrainian shipping.