ПІДВИЩЕННЯ ФІНАНСОВОЇ ВІДКРИТОСТІ УКРАЇНИ НА ШЛЯХУ ДО ЄВРОПЕЙСЬКОЇ ІНТЕГРАЦІЇ

Abstract

Introduction. The article analyzes the changes in approaches to the small economies financial openness improvement. It takes into account the new challenges of global economic instability and the contradictions of the European integration requirements of financial openness in the conditions of global economic destabilization and highlights possible ways of overcome them. Materials and methods. To disclose the theoretical model of the interconnection between financial openness, financial stability and economic growth has been used system-functional and comparative economic-statistical analysis methods based on World Bank and IMF statistic data. Results and discussion. It is emphasized that there is a trend towards strengthening control over capital flows at the global level and the removal of restrictions on the movement of international capital flows is one of the key requirements for the approximation of regulatory norms in the field of financial sector for countries going to join the EU with the regulatory framework of the latter. Given the current conditions of global uncertainty and the threat of increasing financial instability, the EU's position on the free movement of capital flows at this stage may be significantly revised. Due to the current conditions, the requirement of free movement of capital flows contradicts with a list of requirements for the approximation of the characteristics of the financial sector of the candidate countries and the EU. The need for a capital flow control policy for small open economies wishing to join the EU at this stage is not just only the need of ensuring macroeconomic stability, but also to the convergence criteria of systems, in particular in terms of joining to ERM II and BEPS. Conclusions. In overall case of small open economies, in the context of the implementation of European norms and the approximation of regulatory framework in the financial sector, it is necessary to talk about the feasibility of controlling the international capital flows at the stage of building adequate institutional environment as a support measure for further transition to free exchange rate and capital flows liberalization. As a proposal, it is stated that the elimination of identified contradictions and the transition to the free capital movement in the interests of Ukraine's European integration requires proper development of the country's financial sector and, above all, its institutional environment. The implementation of appropriate practical measures for the institutional provision of financial openness should include a policy of control over the movement of capital flows, which combines the potential of fiscal, monetary and regulatory policies in different segments of financial markets as part of the macroprudential policy.