Economic Growth In Ukraine Research Articles

ІМПЕРАТИВИ РОЗВИТКУ ГОТЕЛЬНО-РЕСТОРАННОЇ ІНДУСТРІЇ В УМОВАХ ВОЄННОГО СТАНУ: ТЕНДЕНЦІЇ ТА ПЕРСПЕКТИВИ ВІДНОВЛЕННЯ

The article reveals the peculiarities of the imperatives for the development of the hotel and restaurant industry under martial law and identifies the priorities for the post-war restoration of this sector of the national economy. The article analyzes the key indicators of development of business entities in the field of temporary accommodation and catering, in particular, the number of employees, the number of operating business entities and the volume of products (goods, services) sold. The article analyzes tax revenues to the state budget of Ukraine from business entities in the field of temporary accommodation and catering. The author highlights a number of prospects for the restoration of the hotel and restaurant industry in the wartime and postwar periods. It is established that the hotel and restaurant industry of Ukraine, despite significant losses and damages, including destruction, needs to develop a strategic vision of the prospects for future activities It has been established that the post-war reconstruction of Ukraine has great potential for the development of the hotel and restaurant industry, as after the war many new opportunities for infrastructure development may appear, including hotels, leisure centers and recreation centers. This will lead to an increase in consumers of hotel and restaurant services. However, in order to fully realize the potential of the hotel and restaurant industry, it is necessary to take into account such aspects as improving the quality of hotel and restaurant services, developing effective marketing strategies, and supporting small and medium-sized businesses operating in the hotel and restaurant industry. Therefore, it is worth noting that the future of the hotel and restaurant business in Ukraine depends on the scale of destruction and the pace of reconstruction during the war and post-war periods, the migration processes of the population and potential employees in the hotel and restaurant business, and, above all, the level of solvency of the population as potential future customers. At the same time, the successful development of the hotel and restaurant industry will contribute to Ukraine's economic growth.

The real estate tax impact on economic growth

Defining of the tax impact on economic growth is of particular importance in the face of exacerbation of socio-economic, technological, environmental and other problems. Property taxes, as ones that have less distorting impact on taxpayers’ economic behavior, compared to the greater part of the rest of the known taxes, are attracting more and more attention of many researchers and are considered from the standpoint of a potential fiscal policy instrument in ensuring positive dynamics of economic development. The purpose of the article is to summarize modern approaches and research results on the impact of the real estate tax on economic growth in order to identify opportunities for implementation of this tax instruments to stimulate economic development. It has been established that foreign researchers are studying the impact of taxes on real estate from the standpoint of distorting the distribution of resources in the economy, changing the decisions of economic agents on investment issues, growth rates of the housing stock, leveling income inequality, increasing the stability of tax systems to external shocks, etc. It was revealed that most authors consider the real estate tax as one of the most non-distorting, which, with a properly designed taxation mechanism, has practically no negative impact on economic activity, and therefore little hinders economic growth, helping to reduce income inequality, increase employment and income, efficient use of land. As a local tax, it is most often seen in terms of financing local budgets and is a useful tool for raising revenues and managing public finances, since raising effective rates and broadening the property tax base can offset cuts in other taxes that are more distortive of economic behavior. In Ukraine, the attention of the authors is focused on increasing the role of property taxes in providing income to local jurisdictions and strengthening their financial stability. There is a significant lack of national researches on the impact of real estate tax on economic growth in Ukraine. Further research on the functioning of the real estate tax in the new conditions of changing paradigms of economic development and international relations, and on the impact of the real estate tax on economic growth in Ukraine could reveal new aspects of its use in the national tax system.

Modeling the influence of monetary factors on the development of national production

The article is devoted to defining the influence of monetary policy on the development of national production and substantiating the prospects for its monetary regulation. It has been established that in recent years the monetary policy of Ukraine has been unfavourable for the industrial development in Ukraine. The NBU, which adheres to the monetary regime of inflation targeting, pursues a relatively strict policy, in particular, maintaining the real key rate at a level above neutral and low growth rates of the real money supply. As a result, for many years the national industry has been operating in conditions of a chronic shortage of working capital and investments, which exacerbates the problems of its development. To establish the nature and strength of the influence of monetary factors on long-term economic growth in Ukraine, a new economic and mathematical model based on production functions has been developed. Its parameterization showed that national output directly depends on the increase in invested labour, and vice versa – on the increase in Hryvnia exchange rate to U.S. Dollar (discourages exports) and U.S. Dollar Index (worsens the foreign economic situation). The impact on the increase in the real money supply can also have a positive impact on the economy, but its strength depends on the growth rate of broad money (with controlled inflation). At moderate rates, typical for the basic scenario of long-term development of the Ukrainian economy, investments are not increasing as vigorously as it is necessary for accelerated growth of real GDP and incomes of citizens. An increase in the growth rate of the real money supply (up to about 15% per year), set forth in the accelerated development scenario, can provide better results. It is proved that despite the importance of monetary variables, the key factors influencing the links in the chain "real money supply – investment – industrial growth" should be sought outside the monetary sphere proper. Stable expansion of the monetary base and growth of the real money supply do matter, but they are not able to solve the fundamental problems of modernization of economic institutions, structural restructuring of the economy and overcoming technological gaps with industrialized countries. It follows from this that in Ukrainian economy in the long run it is important for the regulator to maintain stable growth of the real money supply and controlled inflation, but this will be of fundamental importance for solving the accumulated problems only if the policies of the regulator and the government are coordinated, which should create favourable conditions and form appropriate institutions to reduce the dependence of the economy on raw material exports, accelerate national technical and technological development and increase its overall level.

Trust as a Catalyst of Economic Growth: A National and Regional Breakdown

Given the fact that Ukraine declares a European path of development and considers itself a potential member of the European Union, the study mainly examines the relationship between trust and economic growth in Ukraine and other countries of the world, including post-Soviet countries. The hypothesis that general trust has a positive effect on economic growth in general is tested, and a comparative assessment of the level and factors of trust across the regions of Ukraine has been carried out. The results show an historical tradition of mistrust of the state and its institutions particular to Ukraine as the country where the state has been perceived as foreign by most of the population for over 70 years; exceptional weakness and corruption of state administration, even by the standard of third-world countries; availability of influential and consistent stereotypes, partially universal and partly specific to post-communist countries. It causes polarization in society and within certain social groups and governmental institutions. Ukrainian society is characterized by the waste of symbolic capital of confidence in authorities. Meanwhile, there is some symmetry between mistrust of the system and trust in entities created by people to meet their spiritual, social, psychological, and other needs.

Prospects for the development of the innovative infrastructure of the country under the conditions of Industry 4.0

Problem setting. In the conditions of the digital economy, the level of development of science and technology is a determining factor in the progress of society and a source of economic growth in Ukraine. Therefore, one of the priority tasks of modern state policy is the formation and ensuring the functioning of a stable innovative infrastructure. Target of research. To conduct an analysis of the current legislation in the field of innovation to identify the effectiveness of the influence of state regulation on the development of innovative infrastructure and its components in the conditions of Industry 4.0. Analysis of recent researches and publications. In the domestic scientific literature, among the representatives of both economic and legal sciences, in the conditions of qualitative changes in the world economy, the problem of the development of innovative infrastructure, its essence and history are dealt with, in particular, by such scientists as H. P. Klimova, I V. Podrez-Ryapolova, A. S. Samorodov, V. V. Maloyvan and others. Article’s main body. The article examines the prospects for the development of Ukraine’s innovative infrastructure in the conditions of the digital economy, and solves the problems of ensuring the effectiveness of its functioning. The current legislation of Ukraine in this area, international legal acts, scientific works have been analyzed, conclusions have been drawn that have both theoretical and practical significance regarding the outlined issue. It is noted that the infrastructure (production, social, urban, innovative, research, educational, information, etc.) in the market economy is traditionally considered as a specific system (subsystem) of interconnected institutions, the purpose of which is to create general conditions for the functioning of subjects in various spheres of economy. It was concluded that the innovative infrastructure of Ukraine consists of a set of enterprises, organizations, institutions, their associations, associations of any form of ownership, which provide services for the provision of innovative activities (financial, consulting, marketing, information and communication, legal, educational, etc.). The state must provide conditions for the development of the infrastructure of knowledge dissemination (patent organizations, research centers, communication links, open databases, etc.), organize an innovative structure of education and science, providing sufficient funding for these systems, and also direct its efforts to the development of human creative potential. At the same time, solving the problem of the competitiveness of scientific research and scientific and technical (experimental) development in modern conditions is impossible without the integration of the scientific and innovative system of Ukraine into the European Research Area – a system of programs and political instruments that unites the institutional environment of research and development of the states that are members of the European Union and associated members for the purpose of development of international scientific and technical cooperation, free transfer of knowledge, mobility of researchers. Conclusions and prospects for the development. Summarizing the above, it should be noted that in the conditions of the digital economy, one of the priority tasks of modern state policy is the formation and ensuring the functioning of a stable innovative infrastructure, in particular, the creation of the necessary organizational, legal and financial conditions for the development of the research infrastructure system, promoting the integration of the scientific and innovative system of Ukraine to the EDP, the development of «digital infrastructures», in particular, e-infrastructures, the accession of Ukraine to the Single Digital Market of the EU, the adaptation of higher education to the European Higher Education Area.

THE ROLE OF TECHNOLOGICAL DEVELOPMENT, NATIONAL SECURITY AND HUMAN CAPITAL IN A COUNTRY'S ECONOMIC DEVELOPMENT

The purpose of this article is to assess the dynamic relationship between technological development, national security, human capital and economic growth. To find out how Ukraine's economic growth changes during 2013-2020 and which factors are strategically important in this change. Methodology. Research objective: to assess the long-term relationship between independent variables (human capital, technological development, national security) based on the Fechner rank correlation coefficient and cognitive analysis; to assess the causal relationship between indicators of human capital, technological development, national security and economic growth based on multiple regression. The method of cognitive modeling, multiple regression and rank correlation allows to find out how the economic growth of Ukraine changes during 2013-2020 and what factors are fundamental for this change. Results. The causal relationships of the factors of economic growth were established with the help of the Fechner coefficient. On the basis of cognitive modeling with the use of causal relationships of exogenous and endogenous factors, the impulse impact of each factor on the whole system of economic growth indicators was assessed. It is proved that the most significant scenarios are impulses, which include factors: military expenditures, population in urban agglomerations over 1 million people (% of the total population); domestic public spending on health care per capita. The significance of the factors is confirmed by the construction of a multiple regression of the dependence of GDP per capita on the % of population in urban agglomerations, public health expenditures per capita, military expenditures per capita. It was found that in the situation under study 99.94% of all the variability of GDP per capita is explained by changes in selected factors. Practical implications. It consists in the possibility of using the results of the study for scientific developments and practical activities. The proposed cascade approach can be used in forecasting macroeconomic growth of the country and the formation of appropriate strategic development programs. Value/originality. A cascade approach to the assessment of the dynamic relationship between technological development, national security, human capital and economic growth, which includes a hierarchical sequence: the establishment of causal relationships of economic growth factors using the Fechner coefficient; assessment of the impulse impact of each factor on the entire system of economic growth indicators using cognitive modeling; proving the significance of factors using the construction of a multiple regression.

Українському щастю бути

The review of the main topics of The Third International Scientific Conference “Happiness and Contemporary Society” held in Ukraine on March 20, 2022 dur­ing the war with russia are presented. The ideas published in the Proceedings of the conference which are promising for further elaboration for reasons of pro­moting national, cultural and economic growth of Ukraine, are analyzed. The ef­fectiveness of the happiness-oriented approach in interdisciplinary research is illustrated.

Successful territorial brand formation (on the example of Singapore)

Main directions of improving the strategy of Ukraine's external debt management based on the results of the assessment of the main indicators of external state debt in relation to the criteria of economic security and the impact of external debt on key macroeconomic indicators are substantiated in the article. According to the results of the regression analysis of the relationship between main macroeconomic indicators and indicators of external debt, it was concluded that the external debt has an ambiguous impact on the economy of Ukraine. The hypothesis about the negative consequences of increasing the external state debt for the economy of Ukraine has not been fully confirmed. Based on the analysis of the data for 2008-2020, the direct impact of changes in external debt on GDP in actual prices, as well as the direct impact of gross external debt on changes in GDP per capita was identified. This confirms a positive role of external borrowing in ensuring Ukraine's economic growth. At the same time, the inverse dependence of Ukraine's GDP on changes in external debt per capita and the ratio of total payments to service external debt to state budget revenues was revealed. The dependence of GDP per capita on the ratio of total external debt service payments to state budget revenues is also inverse. The results of the study suggest an ambiguous impact of external debt on the national economy, which necessitates effective management of the external debt. The Long-Term Strategy for Ukraine's External Debt Management until 2030 should become an important institutional tool for reducing threats to the country's economic security arising from the growing debt burden. The purpose of the proposed Strategy is to minimize the cost of servicing external debt in the long run and reduce the level of relevant risks.

Financial well-being of territorial communities and the economic growth of the regions of Ukraine: assessment and modeling of interrelation

Purpose. The purpose of the article to assess and model the interrelation between the financial well-being of territorial communities (TCs) and regional economic growth in Ukraine under conditions of uncertainty.
 Methodology / approach. The empirics of assessment and modeling of a causal relationship between the financial well-being of TCs and economic growth of regions is based on: the construction of time series for empirical parameters of territorial communities’ financial well-being (substantiation of structural elements of financial well-being, TCs clusterization by the criteria of profitability, and calculation of integral coefficients); multidimensional estimation of regional economic growth (multiplicative approach, principal component analysis); detection of impact (“pressure” force) of TCs’ financial well-being on the paces of regional economic growth (index and regression methods). 
 Results. Based on the results of the integral assessment with preliminary clusterization of TCs by their revenues, the article reveals that in 2020, the weighted average level of TCs’ financial well-being in Ukrainian regions was the highest in Zakarpattia (0.592), Kherson (0.534), Zaporizhzhia (0.513), and Chernivtsi (0.512) oblasts, while the lowest – in Ivano-Frankivsk (0.281) oblast. In 2010–2020, Ivano-Frankivsk (0.48 %), Poltava (0.06 %), Rivne (0.16 %), Ternopil (0.25 %), Khmelnytskyi (0.35 %), and Chernihiv (0.54 %) oblasts demonstrated higher annual average economic growth paces, while Dnipropetrovsk (-0.86 %) and Kherson (-0.94 %) oblasts – negative ones. 
 Originality / scientific novelty. The article enhances the methodological approach to the complementary assessment of TCs’ financial well-being and regional economic growth, which has contributed to modeling the ability of territories’ economies to increase investment-economic capacity and the causal relationship between economic growth determinants and the financial capacity of territorial communities in regions. 
 Practical value / implications. The article offers and substantiates the action-oriented approach to the assessment of regional economic development. Its implementation contributes to making the spatial breakdown of the system’s economic condition and building the architectonics of economic progress determinants to determine the “divergence areas” of regional development.

Financial well-being of territorial communities and the economic growth of the regions of Ukraine: assessment and modeling of interrelation

Purpose. The purpose of the article to assess and model the interrelation between the financial well-being of territorial communities (TCs) and regional economic growth in Ukraine under conditions of uncertainty.
 Methodology / approach. The empirics of assessment and modeling of a causal relationship between the financial well-being of TCs and economic growth of regions is based on: the construction of time series for empirical parameters of territorial communities’ financial well-being (substantiation of structural elements of financial well-being, TCs clusterization by the criteria of profitability, and calculation of integral coefficients); multidimensional estimation of regional economic growth (multiplicative approach, principal component analysis); detection of impact (“pressure” force) of TCs’ financial well-being on the paces of regional economic growth (index and regression methods). 
 Results. Based on the results of the integral assessment with preliminary clusterization of TCs by their revenues, the article reveals that in 2020, the weighted average level of TCs’ financial well-being in Ukrainian regions was the highest in Zakarpattia (0.592), Kherson (0.534), Zaporizhzhia (0.513), and Chernivtsi (0.512) oblasts, while the lowest – in Ivano-Frankivsk (0.281) oblast. In 2010–2020, Ivano-Frankivsk (0.48 %), Poltava (0.06 %), Rivne (0.16 %), Ternopil (0.25 %), Khmelnytskyi (0.35 %), and Chernihiv (0.54 %) oblasts demonstrated higher annual average economic growth paces, while Dnipropetrovsk (-0.86 %) and Kherson (-0.94 %) oblasts – negative ones. 
 Originality / scientific novelty. The article enhances the methodological approach to the complementary assessment of TCs’ financial well-being and regional economic growth, which has contributed to modeling the ability of territories’ economies to increase investment-economic capacity and the causal relationship between economic growth determinants and the financial capacity of territorial communities in regions. 
 Practical value / implications. The article offers and substantiates the action-oriented approach to the assessment of regional economic development. Its implementation contributes to making the spatial breakdown of the system’s economic condition and building the architectonics of economic progress determinants to determine the “divergence areas” of regional development.

УКРАЇНА У ВИМІРАХ ІНКЛЮЗИВНОСТІ ТА ІНСТИТУЦІЙНОГО РОЗВИТКУ

Розглянуто аналітичні виміри традиційного та інклюзивного економічного зростання, розвитку і функціонування інститутів у процесі актуалізації ціннісного зсуву в суспільстві й трансформації мети економічних перетворень від економічного зростання як такого до якісних змін структури нового спектра економічних процесів, які відіграють визначальну, а сьогодні навіть життєво важливу роль. Визначено місце України в даній системі координат, що дозволило виявити наявність високого незадіяного потенціалу інклюзивного розвитку для нашої держави. Цілком можливо в Україні переструктурувати, навіть за існуючого рівня ВВП, економічні й соціальні процеси так, щоб забезпечити істотно вищі темпи структурних змін щодо інклюзивності. Окреслено засоби консервування переважно екстрактивної структури економіки. Обґрунтовано, що все гострішою стає проблема нерівності, яка з економічної (за доходами і багатством) перетікає в освітню, охорони здоров’я і т. д. При цьому просте підвищення середнього рівня ВВП на одну особу ці питання автоматично не вирішить, адже це структурні проблеми, які потребують висвітлення і уваги під зовсім іншим кутом зору. Аргументовано пріоритетність здійснення структурних реформ у сфері підвищення рівня інклюзивності інститутів за ключовими напрямами на довгострокову перспективу. Найбільший потенціал для формування інклюзивного суспільства як підґрунтя забезпечення нової якості економічного зростання в Україні міститься в Цілях сталого розвитку 8 і 5, комбінація яких створює синергетичний ефект. Для підвищення рівня інклюзивності інститутів у першу чергу потрібні певні зміни в законодавстві щодо антикорупційних інститутів, Податкового кодексу України, гендерних питань, підходів до розподілу ренти, олігархічних корпорацій, діяльності Big Tech на території нашої країни і багатьох інших питань. Однак головною проблемою в Україні є не стільки закони, скільки їх виконання, адже мають діяти правила, а не рекомендації.

ECONOMIC TRENDS OF UKRAINE’S DEVELOPMENT AND PRIORITIES OF REALIZATION OF NATIONAL ECONOMY POTENTIAL

The aim of the article is to analyze the state and trends of Ukraine’s economy at the current stage of its development, as well as to substantiate the strategic priorities of state policy to overcome challenges and ensure better realization of the potential of Ukraine’s national economy. The study reveals the urgency of the problem of forming and effective use of Ukraine’s economic growth potential. The analysis of the structure of the population of Ukraine (by the status of labor force, employed and unemployed) in 2010-2021. The situation regarding wages and arrears of its payment in the types of economic activity of the economy of Ukraine is analyzed. The dynamics of volumes of industrial products sold by domestic enterprises in 2010-2021, including by industries of Ukraine, is reflected. The structure of domestic industrial production as of January 2022 is described. The information on indices of construction products and agriculture, forestry and fisheries in Ukraine in 2015-2021 is given. The analysis of positions of economy of Ukraine in the world rating of digital competitiveness is carried out. The key problematic aspects and obstacles to the realization of Ukraine’s economic potential are summarized, in particular, the deterioration of intellectual and human resources and the growth of the volume and level of unemployment; low level of wages and increase in arrears of wages; irrational structure and small volumes of industrial production; instability of production and sales of products of the real sector of the economy; weak positions of big business entities; low innovation and technological activity and the ability to carry out full-scale digital transformation of the national economy. The applied significance of the research results is that the strategic priorities of the systemic state policy of establishing an effective model of economic growth in Ukraine, namely – the diversification of international economic relations and foreign trade; ensuring the stability and independence of the financial system of the state; convergence of the social security system with leading international practices; realization of the potential of “drivers” of economic sovereignty and development; strengthening energy independence, increasing energy efficiency and savings; building and improving the capacity of critical infrastructure elements; ensuring the functional and structural integration of the economic complex.

PRIORITIES OF STATE POLICY FOR FORMATION AND EFFECTIVE USE OF HUMAN CAPITAL AS A FACTOR OF ECONOMIC GROWTH

The purpose of the study is to substantiate the priorities of state policy of formation and effective use of human capital as a factor in economic growth of Ukraine. The urgency of the problem of determining strategic priorities and vectors of qualitative formation and effective use of human capital of the state is revealed. The role and directions of increasing the efficiency of human capital use in order to strengthen competitiveness and ensure economic growth of the state are generalized. Measures have been identified that contribute to improving the place of human capital in the system of competitiveness and economic growth, in the areas of: personnel, innovation, organizational, financial, social, marketing, technological innovation. The strategic priorities of the state policy of formation and effective use of human capital in the context of ensuring economic growth in Ukraine are identified, concerning improving the quality of the system of professional training and advanced training of personnel; improving the planning of costs for intellectualization and development of research; improving the resource security of research and innovation activities; development of entrepreneurial activity in the research sphere, as well as high-tech startups; improving the efficiency of the infrastructure elements of scientific and innovative activities; increasing costs and investment in the intellectualization of commercial economic activity. The applied significance of the research results is that six technological stages of the state policy of quality formation of human capital in the context of economic growth in Ukraine are identified: analysis and identification of risks and threats to human capital; development of methodology; approbation of the method; identification of scenarios for the recovery of human capital in Ukraine; planning and institutionalization of public policy; improving the state policy of preservation and development of human capital. The scientific novelty of the research results is that the methodological approach to the planning of the state policy of ensuring the economic growth of the state and the means of formation and effective use of human capital have been improved.

Structural change and economic growth in Ukraine

Deep structural shifts have been the leading feature of the modern world. The study considers the parameters and causes of structural change in the Ukrainian economy, as well as the relationship between structural change on the one hand, and labor productivity and economic growth on the other. The study shows that the accelerated reduction of the industrial sector, its technological simplification and narrowing the variety of industries were the key features of the structural changes model that occurred in Ukraine's economy after the global financial crisis. This was accompanied by increased dominance of the tertiary sector and the growth of the primary sector. Such a trend of structural shifts is not able to generate the necessary boost of economic growth. Comparison of parameters and trends of structural changes in Ukraine’s economy and in a comparable group of countries and the world as a whole shows that the changes in the structure of Ukraine’s economy were more intensive, but did not create sufficient potential for sustainable economic growth. The author analyzes the gaps in labor productivity between economic activities and sectors of Ukraine’s economy, as well as changes in their dynamics, which leads to the conclusions about the relationship between the rates of technological development of different sectors of Ukraine’s economy and the gradual slowdown of the already imperfect technological development of this country’s industry. Using the apparatus of econometric modeling, the author evaluates the dependence of the dynamics of GDP growth on the change of the indices of GVA in the sectors of this country’s economy.

The Relationship Between Economic Growth and Banking Sector Development in Ukraine

The paper examines the relationship between economic growth and banking sector indicators in Ukraine. The constructed empirical model revealed a positive impact of bank deposits on real GDP growth. The causal relationships between economic growth in Ukraine and the performance of the banking sector are analyzed using the Granger Causality Test. It is established that banking deposits Granger-cause GDP, while banking credits do not, but GDP has an effect on banking credits. It is noted that the banking sector of Ukraine does not play a significant role in the redistribution of capital in the intersectoral and spatial dimensions. It is defined limiting factors of lending to the private sector and ways to increase the deposit base of banks.

ЕФЕКТИВНІСТЬ ІНВЕСТИЦІЙНОЇ ДІЯЛЬНОСТІ В УКРАЇНІ

This article seeks to assess the effectiveness of attracting foreign investment in Ukraine. Within the scope of the research, investment activity is considered a key driver for economic development. It is emphasised that boosting economic growth in Ukraine depends heavily on attracting foreign investment as their effects extend to encouraging the national output, the speed of its technological advancements as well as the scale and pace of economic restructuring. The purpose and objectives of the study are to explore and evaluate the effectiveness of foreign investment in Ukraine's economy along with offering the authors’ understanding of the key factors affecting the investment climate and suggesting the most promising pathways to foster investment efficiency in Ukraine. It is argued that this study has a number of significant implications to Ukraine, since investment processes to a great extent underpin market development strategies, and entail the most important mechanisms for creating appropriate environment to overcome the structural economic crisis, implement structural changes in the production sector, promote innovation and enhance economic performance at the micro- and macrolevels. The research methodology involves general scientific methods of analysis and synthesis, and the generalization techniques. The findings reveal a whole range of crucial factors behind the investment process crisis and lack of effective tools for investing into the national economic development. The authors assert that a country's position in the investment ranking is a sort of a ‘business card’ for the investor who is looking for new capital investment opportunities. Currently, from this perspective, Ukraine's chances to attract foreign investment seem quite miserable. However, the findings verify that in the context of modern globalization, to spur foreign capital attraction into Ukraine, creating a favourable investment climate is paramount. The study has identified factors that affect the process of shaping the investment climate, among which the most important are a group of economic, political and geographical factors. According to the research results, a proactive government strategy and a comprehensive approach to resolving the current challenges related to investment activities at the micro- and macrolevels will contribute to realizing Ukraine’s investment potential with maximum efficiency that will lay a solid background for sustainable economic development in the future.

Л. М. Зомчак, І. М. Старчевська СИМУЛЬТАТИВНЕ МОДЕЛЮВАННЯ ЗАЛЕЖНОСТІ ЕКОНОМІЧНОГО ЗРОСТАННЯ ТА РІВНЯ ІНФЛЯЦІЇ УКРАЇНИ

The purpose of the investigation is to identify and quantify the interdependence between inflation and economic growth in Ukraine. Methodology of research. To achieve the goal of the investigation, econometric modeling methods were used, namely systems of simultaneous equations. Findings. The investigation reviewed scientific approaches to the nature and causes of two processes: economic growth and inflation, examined the relationship between them and reviewed empirical studies that explain it, analyzed the dynamics of these indicators in Ukraine for 2000-2020, which confirms the hypothesis that there is a close inverse relationship between them. A simultaneous macromodel of the Ukrainian economy was proposed, which consisting of two equations, the endogenous variables of which are real GDP and the consumer price index, and the factor variables are real consumer spending, the share of exports in GDP, gross fixed capital formation, industrial producer price index and real wage index. The model was tested for adequacy, has rather high accuracy and fulfillment of the basic assumptions of correlation-regression analysis. The influence of all factor variables of the model on the resulting variables is statistically significant. In addition, the equations system fairly and accurately reproduces the dynamics of the original series, so it can be used as an effective tool for macroeconomic forecasting. Practical value. In general, the results of the econometric modeling indicate the existence of a statistically significant negative impact of inflation on economic growth in Ukraine, which is explained by the adaptation of producers to changes in the market by reducing output. The result of the implementation of a scenario that considers the situation, if inflation in Ukraine's economy in all quarters would be 5% higher than the actual values, confirms the assumption of an inverse relationship between the two processes, however, due to the fact that the CPI values do not correspond to galloping inflation levels, such the impact is moderately insignificant and insufficient to provoke an economic downturn. The question of the impact of real GDP values on inflation in Ukraine is interesting: the results of the simulation show that the CPI value in the current period is reversed by the value of real GDP for the previous quarter, but the relationship between inflation and GDP for the corresponding quarter of the previous year is direct. The results can be used to forecast Ukraine's inflation and GDP, as well as to make effective management decisions at the macro level.

STRATEGIC INDUSTRIAL DEVELOPMENT SCENARIOS OF UKRAINE AND THEIR FEASIBILITY UNDER UNCERTAINTY

STRATEGIC INDUSTRIAL DEVELOPMENT SCENARIOS OF UKRAINE AND THEIR FEASIBILITY UNDER UNCERTAINTY

СУЧАСНІ ТЕНДЕНЦІЇ РОЗВИТКУ КООПЕРАТИВНОГО ПІДПРИЄМНИЦТВА

The article notes that cooperation has recently become increasingly large-scale, covering all levels of production. The article examines essence and special characteristics of the modern cooperative entrepreneurship, the theoretical aspects of cooperative enterprises in Ukraine have been considered in the article, in particular the problems of its identification and adequacy to the international cooperative principles. The difference between cooperative enterprises and joint stock ventures has been explained. The conclusion is made about the essence of the cooperative idea as a whole, aimed at the comprehensive development of the personality, the realization of its capabilities and the satisfaction of needs. This article defined by negative and positive sides of the functioning of cooperative organizations in a market economy. The main task of the cooperation in the current context is not an adaptation to market principles, but development of cooperation phenomenon unique characteristics, creating and increasing competitive advantages, underlying the cooperative form of economy management. The analysis of foreign experience of cooperative entrepreneurship shows that in many countries collective management is considered as an effective means of solving economic and social problems. At the same time, the main feature of a cooperative enterprise is the participation of employees in the company's capital, which requires the formation of a qualitatively different culture of corporate management, aimed at the broad involvement of employees in management and economic processes. It was noted that implementation of state support measures, creation of cooperative entrepreneurship supporting structures, development of democratic principles in the management of enterprises are necessary for the development of the cooperative entrepreneurship in Ukraine. The development of cooperative entrepreneurship will contribute to the strengthening of multi-organization, the effective implementation of the collective form of ownership, the expansion of cooperative relations and the acceleration of economic growth in Ukraine.

НАУКОВО-ІННОВАЦІЙНІ ДЕТЕРМІНАНТИ ЕКОНОМІЧНОГО ВІДРОДЖЕННЯ УКРАЇНИ В УМОВАХ ГЛОБАЛЬНОЇ КОНКУРЕНЦІЇ

Influenced by the COVID-19 pandemic and the economic turmoil caused by Russia's full-scale war in Ukraine, key global trends in the world economy, such as intellectualization, digitalization and networking, are being transformed and intensified. In this context, the growth of the country's global competitiveness is also determined by the ability to integrate into global value chains, produce finished products with a high share of added value and export such products as a result of new technologies, organizational, marketing, product innovations with coordinated cooperation between business, government and innovation. The article proves the negative trend of reducing the level of knowledge intensity of domestic GDP, which limits the development of innovation processes in Ukraine and has a negative impact on macroeconomic dynamics in general. Outdated production structure, low level of R&D expenditures in Ukraine and declining innovation activity of domestic enterprises have led to a trend of low presence of Ukraine in the world market of high-tech products. It is substantiated that in order to transform the raw materials character of Ukraine's economy into high-tech and innovative, increase and maintain high innovation activity and ensure high rates of economic growth, the state should increase the share of GDP for research and development and the number of scientists, which will be an important factor of ensuring economic growth in Ukraine. The author confirms the significant statistical dependence of Ukraine's GDP and the dependence of the volume of sold innovative products of industrial enterprises on the cost of research and development. In these conditions, innovation can be a trigger for economic growth, which will be reflected in the intellectualization of the economy, increasing productivity, creating new jobs and opportunities in the corporate sector, and globally ensure the adaptation of the economy to new global trends. Ukraine has significant potential for the creation of an innovative high-tech export-oriented economy with active state support and the development of a progressive national research and innovation system.