Abstract
Purpose – the main purpose of the study is to analyze the institutional factors that are usually considered as components of economic freedom, as well as to assess the level of economic freedom as a prerequisite for improving structural proportions and stimulating the investment process in an economy with excess raw materials sector (such as Ukraine). Research methodology – the methodological basis is a system of complementary mathematical, general scientific and special methods, in particular system-structural comparison of retrospective, diagnostics and mathematical methods of studying possible dependence, general methods of analysis and synthesis, etc. Findings – the main result of the study is that increasing the degree of economic freedom in Ukraine contributes to structural shifts in favour of non-resource exports. Research limitations – our assessment methodology does not take into account the specifics of most European countries and is mainly aimed at countries of Eastern Europe so far. Practical implications – our proposed methodology for assessing the dependence of structural changes in a country’s exports on the economic freedom index IEF can be used in the practice of public administration in countries of such countries as Ukraine and others. Originality/Value – a proposed method for estimating the dependence of structural changes in Ukrainian exports on the IEF Index of Economic Freedom.
Highlights
The attitude to institutional factors differs in the domestic expert environment by a peculiar dualism, when the practicality of institutional changes is not disputed by almost everyone, but their interpretation and connection with the policy of financial stabilization reveal significant differences (Shevchuk, 2019)
The institutional status of the central bank and the rules of monetary and fiscal policy are appropriate for institutional factors (Other institutional factors include an authoritarian form of government, a social package, and the monetary council system as one of the options for tightly attaching a monetary unit to one of the world currencies)
It is clear that in this case, we are talking mainly about institutional factors for responsible economic policy, which should provide both financial stabilization and the necessary structural reforms (Williamson, 1999). Most often in this context, we are talking about a set of Washington Consensus events: 1) fiscal discipline, 2) government spending, 3) tax reform, 4) financial liberalization, 5) exchange rate unification, 6) foreign trade liberalization, 7) attracting foreign direct investment, 8) privatization, 9) deregulation, 10) guarantees of property rights (Fiscal discipline provides for a budget deficit of not more than 2% of GDP, improvement of government spending (redistribution of expenses in favour of education, health care and infrastructure investments, tax reform)
Summary
The attitude to institutional factors differs in the domestic expert environment by a peculiar dualism, when the practicality of institutional changes is not disputed by almost everyone, but their interpretation and connection with the policy of financial stabilization reveal significant differences (Shevchuk, 2019). It is clear that in this case, we are talking mainly about institutional factors for responsible economic policy, which should provide both financial stabilization and the necessary structural reforms (Williamson, 1999) Most often in this context, we are talking about a set of Washington Consensus events: 1) fiscal discipline, 2) government spending, 3) tax reform, 4) financial liberalization, 5) exchange rate unification, 6) foreign trade liberalization, 7) attracting foreign direct investment, 8) privatization, 9) deregulation, 10) guarantees of property rights (Fiscal discipline provides for a budget deficit of not more than 2% of GDP, improvement of government spending (redistribution of expenses in favour of education, health care and infrastructure investments, tax reform (expansion of the tax base, with a reduction in marginal tax rates)). The economic reforms of the 1990s showed the addition of another element – balanced monetary policy (Fischer, 1995)
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