Concentration of capital: determinants within the economy digitalization

Abstract

Capital concentration as a tool for in­creasing efficiency, profitability and creating a greater impact of business on the market where it operates is important for national, regional, as well as global economy. Accordingly, the study of processes of capital concentration, identi­fication of factors that influence it, including analysis of current changes in technologies and the macroeconomic situation, are important both for making investment decisions by busi­nesses and for state regulation to achieve the goals of economic development, increasing labor productivity and growth of well-being. In the post-2019 COVID-19 pandemic time, the world has been affected by factors that were either relatively inconspicuous or absent in recent decades, such as the post-pandemic recovery and associated macro­economic insta­bility, changing geopolitical situation, and conti­nuation and deepening of digitization processes, partly reasoned by trends which were observed during the pandemic. The study proves the validity of the hypothesis about the decisive influence of the macroeconomic situation in developed countries, digitalization and changes in the geo­political situation on the dynamics of investment flows and capital concentration in 2021–2023. Concludes on continuation of such influence in the future, which must be taken into account for the purposes of developing and implementing regulatory measures regarding the concentration of capital in Ukraine.