Economic Growth In Ukraine Research Articles

Shadow economy and economic development: a panel cointegration and causality analysis

The main objective of the research is to study the link between the indicators of GDP and shadow economy. In the article the forms of impact of the shadow economy have been analysed. Its main social, political and economic implications have been determined. The analysis results of the indicators of the average GDP growth rates in EU member states in 1960-2016, showed that the current level of economic growth in Ukraine is much lower compared to other countries. Based on the analysis of static indicators of the social and economic stability (standard deviation, coefficient of variation, maximum and minimum value), direct and feedback links between the levels of economy shadowing and GDP have been demonstrated. In this case, the results of Granger test confirm specific hypotheses and determine the vectors of their interaction at different time horizons.

РОЗВИТОК КОНКУРСНОГО ПРОЦЕСУ (ПРОЦЕДУРИ БАНКРУТСТВА) В УКРАЇНІ У 2000-Х РОКАХ

The article deals with the chronology of the legal regulation for bankruptcy in Ukraine at the stage of its economic recovery, clarifies the essence of its elements, as well as the effectiveness of the entire legal mechanism and its individual components. The authors pay attention to the legal regimentation of the bankruptcy procedure and to the legal acts that regulate its implementation. The main novelties and shortcomings of these acts and their impact on law enforcement practice and on the economy as a whole are highlighted. The article considers the approaches of the legislator to the settlement of the legal status of creditors, their representative bodies, the arbitration managers, as well as the implementation of certain court procedures applied to the debtor at different stages of bankruptcy legislation development. It was found that the Bankruptcy Law, as amended in 2002, became one of the driving forces of Ukraine's economic growth. It is determined that the Recommendations of Supreme Economic Court of Ukraine have highlighted one of the key provisions (principles), in particular the priority of the Bankruptcy Law over other legal acts and the latter can be applied in insolvency as much as necessary and possible. It is substantiated that the Bankruptcy Law, as amended in 2011, contained both the development of judicial practice as well as revolutionary provisions and the achievement of technical progress in the field of the Internet, which contributed to bringing the bankruptcy proceedings to a higher level. It is argued that a number of provisions of this law were used in the preparation of the Commercial and Procedural Code of Ukraine and the Civil Procedural Code of Ukraine. It is determined that a number of the most important provisions of the legislation of the period under study were not reflected in the latest bankruptcy legislation, in particular: clear conditions for initiating bankruptcy proceedings; variety of bankruptcy procedures applied to debtors with legal personality; indefinite circle of subjects of bankruptcy and those persons who are not included in the named circle.

The Impact of Public Debt on Economic Growth in Ukraine

<p><strong>Theoretical background:</strong> The growth in government borrowing, carried out in connection with the banks’ capitalisation, significantly increased the state budget expenditures aimed at servicing the capitalisation domestic public debt, which reinforces the general tendency regarding the exacerbation of the budget risk in the debt sphere in Ukraine. A weighty debt-creating factor was the budget deficit, which was covered by borrowing. Proceeding ahead of the rate of increase in debt volumes in comparison with gross domestic product (GDP) growth rates under the influence of internal and external destabilising factors contributed to the excess of the debt levels security indicators and increased the insolvency risk of the state. The increase of the obligations share denominated in foreign currency or linked to the exchange rate in the overall debt structure as an important indicator of the financial system’s vulnerability to exchange rate fluctuations creates additional threats to debt sustainability regarding the increasing currency risk and the national currency devaluation.</p><p><strong>Purpose of the article:</strong> The article is focused on studying the dynamics and structure of Ukraine’s public debt, its ratio to GDP, and an empirical analysis of the relationship between public debt (external and domestic) and economic growth in Ukraine.</p><p><strong>Research methods:</strong> To empirically test the relationship between public debt and economic growth in Ukraine over the 1992 to 2018 period, multiple regression models were conducted. A real GDP per capita was used as an indicator for economic growth and the debt-to-GDP ratio was used as an index of public debt. Research hypotheses were the following: H1: The public external debt-to-GDP ratio and GDP per capita have a strong negative and statistically relevant correlation; H2: The public domestic debt-to-GDP ratio and GDP per capita have a strong negative and statistically relevant correlation.</p><p><strong>Main findings:</strong> Examining the dynamics and structure of Ukraine’s public debt by borrowing market (external and domestic), it is concluded that there is no strong negative or positive statistically relevant correlation between the public debt-to-GDP ratio and GDP per capita for Ukraine. The impact of this factor is so insignificant that it encourages further research to verify that low GDP growth rate causes the increase in Ukraine’s public debt.</p>

ECONOMIC GROWTH AND DECENT WORK IN SUSTAINABLE DEVELOPMENT CONTEXT IN UKRAINE

This article covers conditions of providing economic growth and forming up decent labor conditions during the realisation of the sustainable development concept in Ukraine. The article’s goal is to analyze economic development and labor conditions in Ukraine and worldwide, also to detach economic growth and decent labor conditions problems and prospects. The analysis of written above of is based on the next main assestment criteria; GDP growth, GDP per worker, rating of countries in the Global Innovation Index, innovation implementation in industrial entrepreneurship, employment rate, rate of youth who unemployed not graduating nor gaining professional skills. The next conclusions are made due our research. Last Years Ukraine achieved major success in the implementation of marked goals. Even though improvements are going gradually and achievement of high rate of population life still needs major expences of material and non-material resources. Counting modern world development tendency, providing decent labor conditions and economic growth in Ukraine should be based on technological renovation and manufacture innovational modernization, growth of entrepreneurship competitiveness aimed on diversification of export abilities, middle and small business development aimed on new workplaces creation, increasing human potential efficiency through labor condition improvement.

The impact of the national tourism system on the economic growth in Ukraine

The paper aims at analyzing the impact of tourism on the economic growth in Ukraine considering its global significance and dynamic development. Tourism should be considered not as a separate phenomenon, but as a complex socio-economic-ecological system, i.e. the national tourism system (NTS). The study attempts to reveal the nature and determinants of the national tourism system impact on economic growth, and also empirically substantiates this in the Ukrainian context. Since the economic decisions require a huge amount of information and different models, a multivariate least square model has been proposed to determine the causal links between NTS and economic growth. The paper also presents the economic parameters such as Ukrainian GDP as a dependent variable, volume of domestic tourism consumption, income from international passenger carriage, international tourism expenditures in the country, the volume of services provided in temporary accommodation and catering establishments, and country’s income from NTS as independent variables. The paper is based on the 2000–2017 statistical data. It concludes that the increase of total NTS contribution to GDP is influenced by all considered factors except the international tourism expenditures in the country. A proposed econometric factor analysis model can be used as a tool to analyze and forecast the socio-economic NTS processes. The hypothesis of the NTS`s impact on economic growth is substantiated.

НЕМАТЕРІАЛЬНІ РЕСУРСИ ЕКОНОМІЧНОГО ЗРОСТАННЯ

У сучасній економічній науці накопичується дедалі більше емпіричних даних про те, що в окремих розвинутих країнах світу інвестиції в нематеріальний капітал збігаються з інвестиціями в матеріальні цінності (техніку, обладнання та будівлі) або випереджають їх. Це дозволяє таким країнам підтримувати високий рівень конкурентоспроможності на світових ринках і забезпечувати стійку економічну динаміку. Після відновлення у 2016 р. в Україні економічного піднесення перед вітчизняною наукою постала необхідність вирішення важливого завдання: виявити, в які види нематеріального капіталу починають дедалі більше інвестувати українські підприємства, щоб збільшувати конкурентоспроможність власної продукції на внутрішньому та зовнішніх ринках. Такі дослідження здійснити неможливо без попереднього вирішення теоретичних запитань, наприклад, які види нематеріального капіталу існують в економіці, який набір нематеріальних ресурсів утворює дані види, що таке нематеріальні ресурси, яким чином вони впливають на економічне зростання та як оцінити їх сукупний вплив?Запропоновано поняттям «нематеріальні ресурси» узагальнити все те, що не має фізичного або фінансового втілення та використовується в економіці для усунення природних, технічних і соціальних обмежень, які стримують мобільність основних факторів виробництва у процесі створення їх нових комбінацій з метою випуску нових видів продукції. Цей науковий підхід дозволив систематизувати різноманіття нематеріальних ресурсів в межах шести видових груп, які утворюють в економіці основні види нематеріального капіталу: людський, інституційний, соціальний, інформаційний і правовий, організаційний капітал та капітал організаційної культури. Встановлено, що інституційний капітал має властивість примножувати запаси всіх інших видів нематеріального капіталу. Обґрунтовано методику оцінювання внеску нематеріального капіталу в економічне зростання країн, що розвиваються. Проведено дослідження динаміки ВВП як функції матеріальних (праці, землі, капіталу) та нематеріальних ресурсів.

Механізм взаємодії інфляційного таргетування та економічного зростання в Україні

Механізм взаємодії інфляційного таргетування та економічного зростання в Україні

THE IMPACT OF INVESTMENT PLACEMENT BY LIFE AND NON-LIFE INSURANCE COMPANIES ON ECONOMIC GROWTH IN UKRAINE

Ukrainian insurers, especially those engaged in life insurance, like European insurers, have a large potential investor in the financial market and can become a key driver of economic growth. Social significance of the investor activity of insurers is tightly connected with the saving function of insurance. Economic significance of investing activity of the insurance companies is determined by the large volumes of their investment resources.The article analyzes the dynamics and structure of insurance reserves of life and non-life insurers of Ukraine in comparison with foreign insurers. Contrary to foreign experience, when the bulk of the reserves is invested in debt and equity securities and real estate, Ukrainian insurers are mostly oriented towards banking investments due to the underdevelopment of the stock market, high deposit rates, and lack of investment experience. The differences in behavior of life and non-life insurers in the financial market as institutional investors are determined based on the features of insurance activity. The specifics of life insurance lays in the long-term contracts that allow investing a significant portion of the reserves in relatively long-term investment vehicles and significantly reduce the requirements for liquidity of investments. The reserves of life insurance companies are in fact 4 times higher than non-life insurance ones. In order to assess the impact of investment placement of life and non-life insurance on economic growth in Ukraine, the correlation between rates of change of technical provisions and life insurance reserves and GDP in the dynamics of 2001-2016 has been analyzed. The investment activity of life andnon-life insurance companies during the period of 2001-2016 was basically ineffective. This is evidenced by the correlation between the rates of change of insurance reserves and GDP, that is higher than 1.It has been determined that the rate of change of investments is predominantly ahead of the GDP rate. This indicates they are used not to ensure the development of the national economy, and, more likely, with a speculative purpose. There is a cyclical correlation between annual rates of change of technical provisions and GDP. The life insurance investment placement was only effective in 2010, 2011 and 2016. However, it should be noted that over past years, namely from 2014 for non-life insurance, and in 2016 for life insurance, there is a positive trend that allows us to conclude that further prospects for economic growth in Ukraine in dynamics.

The impact of IMF loans on economic growth in Ukraine

Solving problems with the state budget deficit and the balance of payments deficit is an important task for Ukraine. In both of these tasks, Ukraine uses international loans, the placement of external government bonds and domestic government bonds. The purpose of the study is to determine the impact of IMF loans on economic growth in Ukraine. In order to determine the impact on the economic growth of IMF financing, a model has been developed whereby GDP is a function of: government debt, national gold and foreign exchange reserves, and IMF loans. The results showed that the amount of public debt, the amount of national gold and foreign exchange reserves and the IMF loans are statistically significant. IMF loans are expected to have a negative impact on economic growth: a 1% increase in loans leads to a 1.07% decrease in GDP. IMF loans are not intended to stimulate economic growth, their purpose is to solve the balance of payments deficit. On the other hand, IMF loans can have a positive impact on economic growth through two other channels. The first channel is a fact of cooperation with the IMF, which signals to other creditors and international investors the predictability of economic policy in the country. This can help attract investment from abroad. The second channel – IMF loans, reducing the balance of payments deficit and reducing the burden on central bank reserves, that could accelerate the economic recovery phase in future periods. The presented study has several limitations. The time series of observations consists of 17 observations (annual observations since 2002). As a result, the sample size is quite small. Data on NBU gold and foreign exchange reserves up to 2002 are not available in NBU open sources. In addition, data on borrowings from the IMF have been used in aggregate form, that is, the total amount of borrowings. Future research plans to highlight IMF loan origination periods and investigate their impact on GDP as an individual event. Also, to improve the accuracy of calculations, it has been planned to use quarterly data, not annual, which will increase the number of observations in the sample.

Budgeting as the basis of strategic planning in enterprises of small and medium-sized businesses in Ukraine

The present-day competitive environment of functioning national enterprises of small and medium-sized businesses requires the implementation of effective methods of management of finances, one of which is budgeting. However, the introduction of budgeting will not be effective, if there is no interconnection with the enterprise’s strategy. The process of formation and fulfilment of strategic plans of entrepreneurship entities is long enough and requires the optimization of all the processes connected with budgeting. Thus, the article determines the role of the budgeting process in the system of strategic planning in enterprises of small and medium-sized businesses. The author studies the viewpoints of foreign and domestic authors concerning the definitions of the concepts «budgeting», «strategy», and «strategic planning», proposes the definition for strategically oriented budgeting. The necessity and peculiarities of the implementation of strategically oriented budgeting to reach the enterprise’s planned strategic goals are examined. Though, the issues and prospects of implementing budgeting in enterprises are described by many scientists and experts in their works, the problems of strategically oriented budgeting are studied by not a great number of researchers. There are some points of view concerning the conceptions of strategically oriented budgeting. The balanced system of indices developed by P.Caplan, and D.Norton is on the basis of one of the most spread conceptions. Due to strategic budgeting in enterprises of small and medium-sized business, one can reach the activation of economic processes and provide the economic growth in Ukraine.

The problem of quality of economic growth in Ukraine: theoretical approaches and policy routines

The article considers the main theoretical approaches to assessing the quality of economic growth. More specifically, the paper covers the evolution of the concepts of economic development and quality of economic growth and their meanings. The concept of qualitative growth of economy, which has gained world recognition, is defined and characterized in detail. The nature of economic growth in Ukraine is explained and extensive factors that dominate in the economy are revealed. The research paper highlights the main government’s failures in policy-making for economic development. They are born out of using cheap labour and exporting raw materials. The analysis made it possible for the author to view the government’s initiatives in the economy as policy routines that contradict the theory of qualitative economic growth. The social risks of freezing the current situation are specified and characterized.The results indicate that one of the major obstacles to the qualitative economic growth of Ukraine is the quasi-market, oligarchic-clan economic system which is capable to self- reproduce. Therefore, the proposals on the transition to a model of qualitative growth of the economy are formulated.

The corporate sector as a source of economic growth in Ukraine

The corporate sector as a source of economic growth in Ukraine

Industrial policy as a driver of economic growth: experience of European Union member states for Ukraine

The article analyzes the experience of reforming of industrial policy of the EU member states on the way to sustainable economic development. Based on the conducted analysis the priority areas of high added value in Ukraine are outlined: transport, aerospace, energy engineering, production of equipment for alternative energy, including new materials and energy storage devices; production of weapons, military and special equipment; information and communication technologies. The development of the diversified and high-tech industries, especially the processing industry, is the key to ensuring the economic growth in Ukraine. The de-industrialization in Ukraine in recent years has been slowing down the movement towards the stable and sustained growth. To estimate trends in the structure of Ukraine’s GDP and their impact on economic growth, the taxonomic indicator of development level has been calculated. The units of the statistical aggregate (data from Germany, Poland and Ukraine) were mapped. The relative position of the state was determined as the distance from the statistical aggregate unit to the selected reference base (reference point). The smaller the value of the taxonomic indicator of development is, the closer the country is to the standard. The indicators of GDP, GDP growth rate and the share of industrial production belong to stimulants; the level of inflation and the share of agriculture in GDP - to disincentives. The corresponding calculations permit to draw the following conclusions: - Poland was the closest to the standard in 2000 (index 0.650), although Ukraine demonstrated at that time the highest growth rates and the biggest share of industry in GDP; - in 2017 the gap was increasing - Ukraine was inferior to both countries (with indicators 0.325 and 0.336), due to lower rates of economic growth and a decrease in the share of industrial production against the backdrop of inflationary phenomena. Ukraine should take into account that no country focused on agricultural development has succeeded in economic development. Progressive foreign experience can highlight the criterion of positive changes - an increase in the proportion of technologically complex productions with high added value in the structure of reproduction.

Economic interests in the system of mechanisms of the state influence on the economy

The role of personified and social interests in the formation and implementation of state economic policy is analyzed on the example of using the public finance instrument. The purpose of the study is to form theoretical and methodological foundations of interests as a key parameter of the general mechanisms of self-reproduction of the economy in the system «state - the development of the national economy». The statement about an influence of general mechanisms of selfreproduction in the economy is used to move from the consideration of needs as a driver of economic behavior to interests as a deep root cause of economic development, which underlies both current and long-term changes in the economic system of society. Moving attention to incentives, motivations to action and material regulators in the economic process allows us to highlight the multifunctional role of interests and to determine their key role in ensuring the economic and social development of the national economic. It is shown that the creation of an adequate mechanism for the realization of economic interests in a society is connected with the activity of the state. Public finances are recognized as a leverage of state influence on public and private interests. In conditions of coexistence of the state and the market, public finances are capable of ensuring the balance of all economic processes, built on a compromise of their interests. It is proved, that the greater the part of public finances in GDP, the greater the financial incentives for the realization of interests. The analysis of the volume and specific weight of funds that were distributed in Ukraine through the consolidated budget in 2012–2018 gave rise to the conclusion about a significant part of the imperative redistribution of GDP through public finances. The consequences of applying such an option of economic policy are identified, their contradictory nature is established. It is proved that optimizing the redistribution of GDP through public finances is an extremely important step in the context of creating favorable conditions for economic growth in Ukraine. The necessity of reforming the system of public finances as an important direction of transformation of the Ukrainian economy is pointed out.

Economic growth as a key factor in the dynamics of level and quality of life of Ukrainian population

The objective of this article is conducting the analysis of economic growth, being a key factor in the dynamics of level and quality of life of the population, as well as to develop the related suggestions, in order to accelerate and stabilize such processes in Ukraine. This research presents the analysis of the real GDP’s changing rate in recent years, along with the assessment of another evidence of the economic growth i.e. the income of the population. The related crosscountry comparative analysis of the level of population’s well-being has been performed. The reasons for Ukraine’s significant lagging behind its neighboring regions and other European countries in terms of main economic indicators have been determined. We’ve defined the “poverty trap”, the authors believe that it is the current state of Ukrainian Economy. The related suggestions aimed to accelerate and stabilize the economic growth in Ukraine have been developed.

Will Creative Industries Become Drivers of Economic Growth in Ukraine?

Will Creative Industries Become Drivers of Economic Growth in Ukraine?

PERSPECTIVES FOR DEVELOPMENT OF UKRAINE DAIRY CATTLE BREEDING UNDER THE CONDITIONS OF AN ORGANIC PRODUCTION

PERSPECTIVES FOR DEVELOPMENT OF UKRAINE DAIRY CATTLE BREEDING UNDER THE CONDITIONS OF AN ORGANIC PRODUCTION

Фактори економічного зростання в Україні в 2016–2018 рр.

The article considers the main factors of economic growth in Ukraine, starting with the macrostructural shifts in the incomes of the institutional sectors, which resulted in resumed recovery of the level of gross savings and gross fixed capital formation and allowed to increase the supply potential. The author analyzes the influence of the current revival of investment and consumer demand, and external demand, on the GDP dynamics, as well as the causes of the strengthening of the import component on Ukraine's market. It is found that, despite the improvement of the companies' financial results, the rates of capitalization of gross savings in the sector of non-financial corporations are not sufficient due to structural distortions in the distribution of income among economic activities with a concentration of financial resources in the mining and quarrying. And the share of net profits of the producers of investment and consumer resources remains small, which reduces their investment potential and solvency. In turn, the rate of replenishment of the resource base of the banking system from the households' savings is rather weak, since the overwhelming majority of the latter has no money savings at all, and their richer fractions return their savings to banks in a very slow pace. It is proved that uncurbed inflation blocks the achievement of macroeconomic stabilization, and the lack of credits prevents domestic producers from responding adequately to growing consumer and investment demand. It is emphasized that, by intensifying consumer lending, the banking system has created an asymmetry between the financial support of consumer demand and the weak credit support of the domestic producers of consumer goods, which is reflected in the growth of imports even in the group of food products, where Ukrainian producers have every opportunity to keep their market shares on condition of their loan support. Hence, the most pessimistic expectations are still related to the potential of domestic producers in terms of import substitution and increase in non-raw exports. Moreover, taking into account the divergence between the companies' needs for credits and lack of motivation for the banking system to open credit windows, further loss in the shares of Ukrainian producers is expected on both domestic and foreign markets, as Ukraine has no tools for their support, and the banking system mainly provides resources for consumers and importers of consumer goods.

Activation of the Economic Security of Ukraine in Terms of the European Integration

The full-fledged involvement of Ukraine into the European association stipulates the creation and adherence to the terms so to reinforce the economic and commercial relations promoting the gradual integration of the national economy into the European market. The presence of significant regional disproportions in the social and economic growth in Ukraine requires differentiated approaches in working out measures of regional development designated to assist in creating a free trade area and reinforcing the economic and sectoral collaboration of Ukraine and the EU. So, there arises a need of monitoring and estimation of the economic reform progress in the regions of Ukraine in terms of the European Integration processes aimed to establish strong and weak sides, to substantiate priorities and measures of their achievement and an opportunity of their due correction in order to increase the ability of a region to work in the area of the European Integration.

Material production and GDP in Ukraine: theoretical concept and financial assessment

The article considers the relevant problems concerning the correlation between the development of priority economic sectors and sustainable economic growth in Ukraine. The assumption is made that development at the macroeconomic level can only be achieved when the positive dynamics of material production sectors is observed. The resource potential of Ukraine allows to distinguish two main sectors: agriculture and industry.Many scholars have repeatedly considered ways of achieving positive economic dynamics at the level of the national economy. But despite the existing research on the problems of economic growth, its’ financial assessment and modelling, as well as the dominant factors of influence, remain unsolved. The aim of the article is to identify the factors of economic growth and assess their influence on the overall economic dynamics within two main material production sectors of Ukraine: industry and agriculture. In order to achieve this, the influence factor model of economic growth has been composed, where GDP growth was selected as a result indicator. The choice of influencing factors is substantiated by: quantity of goods and services sold, number of employees in the industry, investments, fixed assets value and the consumer price index. The most influential factors that significantly impact the overall economic dynamics have been revealed in the article.