Microeconomic Level Research Articles

Are Structural Funds a Real Solution for Regional Development in the European Union? A Study on the Northeast Region of Romania

Economic development has been a major priority for the European Commission, with significant amounts of Structural and Cohesion Funds being allocated in this direction. With the enlargements of the Union in 2004, 2007 and 2013, the Regional Development Policy faced a new challenge, with the disparity between new members and the community average being a notable one. The literature is divided with respect to the impact generated by funds allocated through the Regional Development Policy, as some authors claim the existence of positive effects, others identify conditional positive effects and other authors identify only negative effects and say that the whole support system needs to be rethought. This research presents an empirical approach to the issue of the effectiveness of the European Community’s support system for business environments. An analysis is performed at the microeconomic level in order to quantify observable effects at the level of the SMEs that have benefited from non-reimbursable financial aid. The data obtained indicate that Structural and Cohesion Funds for business environments have a significant effect in the medium and long terms, contributing to the achievement of the general objective of the Regional Development Policy (reducing economic disparities between EU member states).

State Aid for SMEs During the Pandemic in Poland

Theoretical background: The global SARS-CoV-2 virus pandemic is affecting everyone, either directly or indirectly. To mitigate the negative economic outcome of the restrictions introduced in order to limit the spread of the virus, the majority of countries have introduced a number of solutions enabling enterprises to survive and maintain employment. Poland has also implemented a whole range of instruments aimed at supporting enterprises and people who have lost their livelihood. Purpose of the article: The aim of the paper is to review selected support instruments for enterprises from the SME group and to determine the degree of their use. Research was carried out to verify the hypothesis that these instruments played a significant role in the survival of enterprises, however, their lump sum nature meant that the aid was not adequate to the needs at a micro-economic level. Research methods: Six instruments were subjected to evaluation, i.e. the standstill benefit, exemption from the Social Insurance Institution fees, low-interest loans from the Labour Fund for micro-enterprises, partial financing of business and partial financing of salary costs, as well as a financial subsidy used by 157 SMEs up to November 30, 2020. During the first step, an analysis was conducted regarding the number of instruments that were used by enterprises, in particular, subgroups. In the second step, using a correlation analysis, the amount of aid obtained in 2020 from 6 analyzed instruments under the shields launched in the first half of the year, used by entrepreneurs by the end of 2020, was compared with the revenues and pre-tax results of enterprises from a given sample. Main findings: State aid was necessary to maintain jobs and satisfactory financial conditions of companies. However, the aid introduced in the first months of the pandemic did not match the real needs of enterprises. The conditions of availability regarding individual instruments made it possible to use them by entities that did not, in reality, require state aid. Nonetheless, from the fall of 2020 (during subsequent waves of the pandemic), the aid was targeted at specific industries, and its use required more stringent conditions to be met.

The effect of international remittances on labour supply in Jordan: an empirical investigation

PurposeThe purpose of the current study is to examine the effect of international remittances on the labour market participation of women and men left behind in Jordan. The study particularly focuses on the labour supply side for both women and men.Design/methodology/approachThe study draws on micro-data from the Jordan Labour Market Panel Survey (JLMPS) in 2010, a nationally representative survey, and addresses the endogeneity of receiving remittances through an Instrumental Variable (IV) approach.FindingsThe empirical results indicate that remittances are found to have a negative and significant impact on labour supply of both women and men. On average, women who live in remittance receiving household are about 5% points less likely to perform any market work, 3% points less likely to be in wage employment and about 8% points less likely to be engaged in own work. While, men who live in remittance receiving household are about 25% points less likely to perform any market work, 5% points less likely to be in wage employment and about 10% points less likely to be engaged in own work. When the author instruments for remittance receipt of the household, the effect of remittances on likelihood to work is found larger for both women and men.Originality/valueWorkers' remittances are considered as one of the vital financial sources for many households in labour exporting countries, most of the investigation on the effects of such financial flows concentrate on the macroeconomic effects. It is therefore important to conduct empirical investigation to fairly and accurately evaluate the impact of these flows on the Jordanian labour market at a microeconomic level.

Sustainable Economic Development of Ukraine through the Agro-Sector Growth

The urgency of the research forms the complex of agricultural sector productivity problems, employment level reduction problems, low wages level, and land productivity reduction. The article is devoted to searching for agrarian sector development directions, which promotes steady economic development based on identified problems. The research aims to develop proposals for solving the main agro-sector problems, which contribute to sustainable economic growth. The article develops the methodology of analysis and uses statistical analysis, probability theory, and generally scientific methods of knowledge. The study brings evidence of the leading hypotheses proposed and the table in the “problem-solution” format. It is proved that the agriculture of Ukraine has a heavy influence on the economy and employment. Agriculture is characterised by instability, low wages, and increased land for growing plant products, while livestock farming is in decline. The following methods are used to solve the problems: market transformation on finished food-product, diversification of production, de-shadowing of the sector, agriculture automation increase, land reform controlling, stimulating farming state programmes. The originality of this study lies in the authors’ sustainable development analysis methodology through the agricultural sector growth. The practical significance of the study lies in the possibility of implementing recommendations at the macro- and microeconomic levels. A further research field forms the automation processes in agriculture available to small and medium-sized farmers

Assessing the extraterritorial consequences of the application of economic sanctions in international trade

The article is devoted to the analysis of the consequences of the application of economic sanctions at the present stage of development of international trade. International practice shows that a significant burden of sanctions falls on the target countries, which leads to a significant reduction in their foreign trade with third countries. Paradoxically, at the same time, for sending countries, there may be an increase in their trade with third countries. The net effect of the imposition of sanctions on international trade is difficult to estimate, since it depends both on the size of the target country of the sending country, as well as on their foreign trade relations with third countries. In the course of our study, it was found that there was no unified theory of economic sanctions, but the practice of their application is possible only when there are economic interactions and interdependence in trade and investment between sending and target countries. At the same time, in recent years, the number of forms and mechanisms for applying economic sanctions has increased. Sanctions have an ambiguous effect on the development of international trade, since they can either increase or decrease the country’s importance in international exchange. As new important lines of research that can better understand the nature and consequences of modern economic sanctions, we note: assessing the impact of sanctions at the microeconomic level; comparison of complex and targeted sanctions, the study of mutual trade and foreign direct investment between sending countries, target countries of sanctions and third countries; analysis of extraterritorial (secondary) effects of economic sanctions. It has also been shown that more significant indirect negative effects of sanctions on the sending country are counter-sanctions of the target country, disruptions in some industries, as well as reorientation of trade to less preferred markets and the need to adapt to new trading partners.

Mortgage lending with the participation of the construction financing fund of the bank of the future

Mortgage lending for the modern economy is a tool to stimulate the construction industry but can be a source of risk at both the macro and microeconomic level, so the sphere of development of mortgage lending requires special attention from scientists, which in fact is realized in practice. So, the purpose of the article is to assess and analyze the prospects and risks of mortgage lending development in Uzbekistan in modern conditions. In order to achieve the goal in the course of the research 23 sources dedicated to various problems of organization of mortgage lending and its management at the state level have been studied. As a result of the study it was determined that the majority of researchers (about 20 authors) in 2018-2021 agree that mortgage lending should be applied and should be stimulated at the state level, but measures to stimulate it should be reasonable and weighted so as not to create prerequisites for a significant increase in supply in the real estate market without solvent demand. In addition, it should be noted that about 12 scientists in their works expressed the opinion that with limited access to capital and increasing cost of capital, the population can access better housing conditions primarily through mortgage lending since other sources of capital formation to improve housing conditions for the population may not be available. The study found that in Uzbekistan, the development of mortgage lending has been most active since 2010, but the pandemic COVID-19 has created some obstacles to further development of the construction sector, in parallel with the improvement of bank regulation of mortgages. The paper analyzes statistical data and diagnoses the current state of mortgage lending in Uzbekistan. In the conclusions, it is proved that the further prospects of mortgage lending development in Uzbekistan will be closely connected with the economic state of the state, in its turn the Government of Uzbekistan takes measures on the formation of the free market of mortgage services within the banking system.

КОМПЛЕКСНА ОЦІНКА ПОКАЗНИКІВ ЕФЕКТИВНОСТІ ІНВЕСТИЦІЙ БУДІВНИЦТВА, РЕКОНСТРУКЦІЇ ТА РЕМОНТІВ АВТОМОБІЛЬНИХ ДОРІГ: НАУКОВО-МЕТОДИЧНИЙ АСПЕКТ

A historical review of methods for evaluation the economic efficiency of investment projects is performed. The analysis of modern methods of efficiency evaluation in the field of construction, reconstruction and repairing of roads is carried out. The main provisions and principles of comprehensive evaluation of construction, reconstruction and repairing of roads are identified and generalized methodological approaches to determination of the overall socio-economic efficiency of financing works on new construction, reconstruction and repairing of public roads, which provides for the relevant stages of: operational condition of the road; socio-economic efficiency of road reconstruction and repairing; environmental efficiency of road construction, reconstruction and repairing . Introduction The most important requirement for the functioning of modern economic systems is a developed network of roads. Integrative development of the national economy is faced with the need to build new and improve existing international transport corridors, which increases their capacity and transit capacity, exports of motor transport services and reduces the time of connection and delivery of goods and passengers by road. Comprehensive evaluation of socio-economic and environmental efficiency of construction, reconstruction and repairing of public roads is a tool of public policy aimed at implementing the principles of sustainable economic development. In terms of program-targeted planning of public roads generalization and further development of scientific and methodological approaches to comprehensive evaluation of the effectiveness of investment projects for construction, reconstruction and repairing of roads is one of the key tasks to improve the quality of existing roads and new transport routes considering their socio-economic and environmental efficiency. Problem statement. During the evaluation of projects for the construction, reconstruction and repairing of public roads, it is need to consider not only the effectiveness of project investments, but also the social and environmental effects associated with their implementation. Generalization of methodological approaches to the comprehensive evaluation of projects for construction, reconstruction and repairing of roads considering their socio-economic and environmental efficiency and the development of methodological tools for evaluation additional effects is a complex scientific problem. Thus the comprehensive evaluation of efficiency of construction and reconstruction of the road has to characterize conformity of its transport and operational condition to the level of social and economic and ecological requirements which are formed taking into account the state, territorial, public and private interests. Purpose and task. The purpose of the article is to substantiate at the scientific and methodological level the feasibility of a comprehensive evaluation the socio-economic and environmental efficiency of construction, reconstruction and repairing of public roads based on the generalization of existing methodological approaches to investment efficiency calculation. The task of the article is to analyze methodological approaches to evaluation the effectiveness of investment projects, determination of their features and basing on their generalization substantiation of a comprehensive approach to the overall evaluation of socio-economic efficiency of investment in construction, reconstruction and repairing of public roads. Materials and methods During the article preparation, the current methods of evaluation the effectiveness of capital expenditures (investments), designing and regulatory documents regarding evaluation the socio-economic efficiency of investments in the construction, reconstruction and repairing of roads were used. In the process of study the methods of comprehensive and system analysis, abstract-logical, method of comparative analysis and others were used. Results The main provisions and principles of comprehensive evaluation of construction, reconstruction and repairing of roads are determined and the unified methodology for determination the overall socio-economic efficiency of financing of new construction, reconstruction and repairing of public roads, which provides for the relevant evaluation stages: transport and operational condition of the road; socio-economic and environmental efficiency of construction, reconstruction and repairing of the road. Conclusions During evaluation the socio-economic efficiency of investment in the development of public roads has to be used a system of indicators that characterize the results of related effects at the macro-and micro-economic level and in the social sphere. In this context, in order to optimize the processes of prioritization and priority of financing works on new construction, reconstruction and repairing of public roads within the relevant legal and regulatory field, methodological approaches to determination the overall socio-economic efficiency of financing works on new construction, reconstruction and repairing of public roads. The application of common methodological approaches to determining the overall socio-economic efficiency of financing new construction, reconstruction and repair of roads involves long-term planning and financing of clearly defined tasks and measures for the restoration and development of public roads. Keywords: construction, reconstruction and repairing, public roads, comprehensive evaluation, overall socio-economic efficiency, environmental efficiency, investment efficiency indicators.

Innovative technologies for human resources management at the microeconomic level

The article gives and describes two «philosophies» of the relationship between the employee and the company in which he is employed: the prevailing «philosophy of the contract» and «philosophy of destiny». Arguments and counterarguments of democratization of economic power at the microeconomic level are presented, as well as conditions are determined and examples of the effectiveness of industrial democracy in the country and in the world are given

Circular economy and environmental protection

<abstract> <p>The circular economy represents a form of corporate production with respect to environmental resources. In the past, these production systems were widespread on the basis of the non-removability of the production factors. The advent of economic growth, in capitalist economies, has led to the deconstruction of production cycles resulting to a food product being produced in one part of the world, whilst the raw materials and processing phases are carried out in several parts of the world, due to the low production costs there. While these economic systems, on the one hand, have led to a growth in the global economic system, on the other hand they have determined the impoverishment of the territory as many companies, at least the uncompetitive ones, have disappeared. In this work, starting from examining the circular economy models, we analyze a development and growth scenario from a circular business perspective. The work highlights that the adoption of circular economy models has higher costs for the companies that implement them and therefore, to become long-term production systems, they need either cooperation among several companies to reduce the average total cost or a potential public contribution in their starting phase. The results of this study highlight that the adoption of circular economy models results in advantages at the microeconomic level. In the event that the cost of the investment cannot determine an advantage at a microeconomic level, one could think of solutions envisaging several companies that adopt a common logic of making the investment in a circular economy. The positive effects occur at the company, family and local levels.</p> </abstract>

МЕЖУРОВНЕВАЯ СБАЛАНСИРОВАННОСТЬ МЕЗОЭКОНОМИЧЕСКИХ СИСТЕМ

The sanctions pressure under which the Russian economy has found itself at the moment has shown the urgent need for consolidation and coherence. In this regard, it is essential to increase coordination and ensure intra-level and cross-level system balance of sectoral and intersectoral complexes. The mesoeconomic level is considered in the paper, on the one hand, as a driver for activating economic growth from a strategic perspective, and on the other hand, as a platform for redistributing resources between the macroeconomic and microeconomic levels. Based on system economic theory, a methodology has been developed for quantitative assessment of the cross-level system balance of sectoral and intersectoral complexes of the meso- and microeconomic levels, taking into account the dynamics of object, environmental, process, and project factors. The mechanism of redistribution of system resources between levels is described in general terms, and formulas for calculating the interlevel balance index for the case of two and three levels are proposed. The developed methods can be used in strategic planning, tactical monitoring, and operational control of the industrial development of Russia.

ТИПОЛОГИЯ СТРАТЕГИЙ ОРГАНИЗАЦИИ ПРОИЗВОДСТВА С ПРИМЕНЕНИЕМ СКВОЗНЫХ ЦИФРОВЫХ ТЕХНОЛОГИЙ

The industrial sector is the basis of economic growth and increasing labor productivity in any country. The development of industry is accompanied by the growth of scientific and research activities, contributes to the formation of a base of new knowledge and new industries, the emergence of innovations and inventions within the country. The problems of increasing the efficiency and competitiveness of Russian industrial production against the background of the unstable economic and political situation on world markets require a radical revision of the existing paradigms of management of economic entities at the macro- and microeconomic levels. This article proposes a typology of strategies for the development of manufacturing enterprises in the conditions of active computerization, informatization and digitalization of production processes. This study is particularly relevant in the light of strategies and programs of technological development of production systems of the Russian Federation. The analysis of the main strategies of the organization of production is carried out, as well as supplemented from the point of view of global digitalization and intellectualization of control systems, production and service. The study proposes a definition of digital production for its further use in research on the use of end-to-end digital technologies in production systems. The study provides an overview of information publications on digital production trends in Russia, analyzes information on the use of end-to-end digital technologies within manufacturing enterprises.

The influence of information technologies on the socio-economic development of territorial communities

Information and communication technology development (hereinafter – ICT), which has a global trend of development, is being actively transformed into the world's global economy. The leading countries of the world began to actively use ICT in the managerial, financial and socio-economic spheres of life of the population at the macroeconomic and microeconomic levels. And in Ukraine, with the beginning of major reforms, one of the priority directions is digitization (digital transformation of society and economy). The decentralization reform, which is actively developing, requires new approaches to the formation of regional economic policy. Already at the first stages of this reform in Ukraine, they began to actively use digital technologies to work with the population. However, the place and role of Ukraine in the world rankings in ICT development is currently below average. That is why the topic is quite relevant for the scientific community because it is worth identifying the weak and strong sides of the state in the digital socio-economic sphere and identifying the most favorable ways to improve the development of Ukraine in the field of IT economy. The scientific article examines the influence of information and communication technologies on the socio-economic development of the state. Defining the role of united territorial communities in the digital economy. The directions of the digital transformation of the management system of the development of territorial communities are considered. The place and role of Ukraine in the world rankings in the rating of ICT development in the field of regional management is determined, and the first steps of the state towards the digital transformation of society and the economy.

СВІТОВИЙ ДОСВІД ТА ЧИННИКИ ВИКОРИСТАННЯ ЕКСПОРТООРІЄНТОВАНОГО РОЗВИТКУ ЯК ІНСТРУМЕНТУ НАУКОВОГО ПРОГРЕСУ

The purpose of this paper is to identify the essence of export-oriented enterprises’ development on macroeconomic and microeconomic levels. There are several reasons that limit companies' exports, among them: technological backwardness of industrial production, physical and moral depreciation of fixed assets, lack of modern scientific and technical base, low quality of products and much more. These reasons narrow the export opportunities of domestic enterprises and hinder the development of their export potential, affect the world market and the demand for traditionally exported goods. All this requires export development, namely the development of export-oriented industries and their diversification. The desire of domestic producers to export products to foreign countries, associated with the possibility of making a profit in foreign currency, which ensures the preservation of income in conditions of instability of the national currency. The transformation of the external environment of enterprises in the direction of increasing the weight of export activity emphasizes the necessity to identify it as a key driver of economic growth of the country as a whole, which requires deep research. The essence of the concept of export-oriented economic development and export-oriented enterprise development is considered in the article. The role and importance of export for the country's economic growth are substantiated. Various export-oriented models of development of the countries of the world are considered, by means of critical analysis the world leaders of export of goods and services and determinants of their success in the world market are determined. The priorities of development of export-oriented enterprises, as well as the role of the state in the activation of this process are determined. Stimulation of export orientation includes institutional transformations in the economy, creation of financial institutions, without which it is impossible to effectively export and develop export production, improve the banking system, develop transport and communications and other aspects that provide external effect for export activities.

Pametan privredni razvoj u evropskim zemljama

Industry 4.0 is a set of digital and physical technologies and cyberphysical systems that create new values at the macroeconomic and microeconomic levels. It is causing significant changes and developments in the industrial sector worldwide. This research aims to determine the impact of Industry 4.0 on socio-economic development by establishing the correlation between Industry 4.0 Index and the UNDP Human Development Index (HDI). Following the correlation analysis, country clusters will be formed based on the implementation of I4.0 and socio-economic development. There is a strong correlation between the implementation of Industry 4.0 and socio-economic development at the European level, while all countries can be placed within three significant clusters. This paper confirms the positive impact of Industry 4.0 on socio-economic development. It also provides institutional and business stakeholders with an objective incentive to implement the core I4.0 technologies faster.

Factors affecting stock price: Evidence from commercial banks in the developing market

This study aims to investigate the impact of microeconomic and macroeconomic factors on the market price per share using panel data from 13 listed Jordanian commercial banks during the period 2010–2021. Based on a microeconomic level the firm-specific variables are earnings per share (EPS), dividend per share (DPS), price-earnings ratio (PE), book value per share (BV), return on assets (ROA), and size (S). Similarly, gross domestic product (GDP), inflation (INF), and money supply (MS) were chosen as independent variables for the macroeconomics whereas the company’s dependent variable is market price per share (MPS). Earnings per share are the most internal and external factors affecting the share price (Arshad, Arshaad, Yousaf, & Jamil, 2015). This paper has investigated the influence of bank-specific and macroeconomic factors on the share price of Jordanian commercial banks using multiple regression models. Based on the regression results, the coefficient of EPS is positive at the 1% level of significance. implying that the greater the EPS, the higher the MPS. The same positive impacts for DPS, ROA, and S are considered major predictors of stock prices in Jordan. Volume was discovered to be the most important determining variable impacting stock price among the factors. This indicates that the bigger the company’s market capitalization, the higher the stock price. Major variables that impact the stock price include macroeconomic data such as GDP and MS.

The dawn of Japanese corporate governance in the Yamato era

Background: The subject of the study is Japanese corporate governance during the formation of the centralised Yamato state and the development of its specific features. Little has been written about the structures and characteristics of governance in ancient Japan. Thus, the article may contribute to reducing the gap that exists in this field in the Polish literature.
 Research purpose: The aim is to try to show Japanese corporate governance in Yamato (until 645) and to identify those unique features and their roots that have not lost their relevance to this day. The paper verifies the thesis that the model of corporate governance developed in the Yamato period is a product of uji traditions and customs, as well as the hybridisation of culture and rights of the Japanese clans and Chinese Empire.
 Methods: The analysis is carried out at macro and microeconomic levels based on a review of the literature on the history of Japan and corporate governance. The most important political, social, and economic events in the early Yamato are presented in building the centralised state, its governance, control, and incentive structures. The uji, the be, and the uji-kabane system are shown as mechanisms of governance.
 Conclusions: The analysis confirmed the thesis that the Yamato corporate governance model is the result of the hybridisation of cultures and the laws of Yamato and China and that it created the foundations of Japan’s unique contemporary model of corporate governance

Various Policies of PT Garuda Indonesia (Persero) Tbk. in Increasing Its Productivity, Efficiency and Income

At the micro-economic level, companies, both small and large, often make policies to deal with economic challenges. This policy aims to create a company that can achieve a sustainable level and increase its productivity and efficiency. PT Garuda Indonesia has issued a microeconomic policy to support its business continuity, but there are still some policies that are not in line with the company's ultimate goal. This essay will explain the problems faced by PT Garuda Indonesia (Persero) Tbk. and analyze the effectiveness of the policies that have been made. The aim is to provide an overview of the business continuity of PT Garuda Indonesia (Persero) Tbk. and its ability to face the current global challenge, namely the COVID-19 pandemic.

MEASUREMENT OF THE LEVEL OF ECONOMIC SECURITY OF ENTERPRISES BY THE INDICATOR OF THE ATTRACTIVENESS FOR HOSTILE TAKEOVERS

The article deals with the assessment of economic security by a number of factors that reflect the probability of proxy battle. In recent decades, the number of such acquisitions in Ukraine has increased significantly, which seriously reduces the level of economic security of economic entities both at the microeconomic level, and at the level of sectors of the economy, as well as the entire economic system of the country. The purpose of the study was to determine the possible impact on the economic security of the enterprise (which is proposed to be determined by a multifactor indicator of the attractiveness of enterprises for raiders) factors of financial stability, reputation, business model efficiency and attractiveness to potential buyers. The methods used in the study are as follows: generalization, grouping, systematization, and content analysis (to identify factors that could potentially signal the threat of a hostile acquisition); correlation and regression analysis (to determine from the totality of factors that have the greatest impact on economic security), the method of theoretical generalization (to identify the approaches of various scholars and scientific schools to issues of economic security and raiding); comparative (to determine the state of economic security of the enterprises under study in different years). As a result, the authors propose an integral indicator of the economic security of the enterprise, which makes it possible to identify the potential attractiveness of the enterprise for raiders. It consists of the following components: profitability (determines the effectiveness of the business model), autonomy ratio (determines the financial stability), ownership of real estate in the city center (resale), reputation (delays in fulfilling contractual obligations). Content analysis of economic security factors of enterprises was conducted according to the data on the raiding seizures of Ukrainian enterprises of all industries and activities, and the Economic Security Indicator was created on the basis of materials of Ukrainian construction companies. However, the methodological approach proposed in the article can be used to identify threats to the loss of economic security by enterprises of any sector of the economy, subject to the adaptation of the model to industry specifics. The use of the created indicator cannot replace the full-fledged system of monitoring the economic security of the enterprise and identifying threats to further activities, but it can be used as an indicator of express-diagnostics of economic security of the enterprise and making decisions on in-depth study of economic security to identify adverse factors delight.

Формування умов для аналізу BEPS в Україні

The article reveals the problems related to the formation of conditions for analyzing the transfer of profits between countries according to the OECD indicators of Action 11 of the OECD Recommendations on preventing the Base Erosion and Profit Shifting (BEPS Action Plan) in Ukraine. It is established that the calculation of OECD indicators with data on Ukraine may be complicated due to the lack of relevant statistical information, as well as due to the establishment of the process of processing, aggregation and analysis of information from companies (including new reporting – Notification of participation in an international group of companies and transfer pricing reporting according to the “three-tier model”, which includes Сountry-by-country report). It is determined: 1) what information needed to calculate OECD indicators for BEPS analysis is already available in statistical sources and financial statements of companies; 2) what data for these purposes can be obtained by government agencies from new reporting for international groups of companies and their members in Ukraine, which will be submitted by them from 2021 and later; 3) what economic figures will not be available for BEPS analysis according to OECD indicators after the start of these new reporting forms. The necessity of forming organizational bases for collecting and processing domestic data at macroeconomic and microeconomic levels is substantiated in order to include them in global calculations of OECD indicators and use them in determining the effectiveness of BEPS countering measures in Ukraine.

Economic Indicators in Water and Wastewater Sector Contributing to a Circular Economy (CE)

Protection and sustainable management of water was indicated as one of the strategic tasks in the process of transformation towards a circular economy (CE) in the European Union (EU), therefore, the water and wastewater sector plays an important role in this process. At the same time, the European Commission (EC) strongly underlined the importance of the possibility to assess the transformation process toward the CE, and developed a set of CE indicators that are available on the Eurostat website. However, these indicators have limited ability to assess the transformation progress in the water and wastewater sector. This paper presents a set of indicators for assessing the economic progress of transformation towards the CE in this sector. The proposed economic CE indicators were grouped into the following actions of the CE model in the water and wastewater sector: reduction, reclamation (removal), reuse, recycling, recovery and landfilling. The selection of specific indicators was based on a systematic review of the literature presenting economic indicators developed by international organisations and researchers (covering different thematic areas, scopes and potential applications). The selected economic CE indicators were assigned to three groups of the cash flow: income (revenues, expenses), costs, and investment financing. The proposed CE indicators can be used by water supply and sewage companies (i.e., supplying water to the public and wastewater treatment plants, and companies that use water in their production processes) to assess the level of the transformation toward the CE at a microeconomic level. An important aspect of future application and usage of the proposed set of CE economic indicators is the collection and processing of data needed for their reporting. The proposed set of CE economic indicators refers to information that are reported by the companies to prove its revenues, costs and investment outlays, and are collected by companies anyway. The proposed set of economic CE indicators is flexible, allowing the adaptation of indicators and areas of interest to maintain effectiveness throughout the transition period from linear to the CE model.