FAILURES OF THE UKRAINIAN ECONOMY AND USING THE EXPERIENCE OF THE EUROPEAN INTEGRATION OF NEIGHBOURING COUNTRIES TO OVERCOME THEM

Volodymyr Boreiko () and Olha Mitchuk ()
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Volodymyr Boreiko: Academician Stepan Demianchuk International University of Economics and Humanities, Ukraine
Olha Mitchuk: Academician Stepan Demianchuk International University of Economics and Humanities, Ukraine

Baltic Journal of Economic Studies, 2018, vol. 4, issue 4

Abstract: Introduction. The most important task of every state is ensuring of citizens’ welfare continuous growth. For centuries, the most famous economists of the world devoted their researches to this issue; they have substantiated the theoretical aspects and have given the practical recommendations for the effective management of national economies. However, using these recommendations, one should be aware that during the last two centuries in the organization and operation of complex economic systems, which are national economies, the significant changes associated with globalization and monopolization of markets, and strengthening the role of the state took place. Purpose of the study. In the article, the reasons that led to the deepening of the gap between Ukraine and mature economies over the last twenty-five years are researched, and it was proposed to use the experience of the European integration of neighbouring countries to overcome them. Results. It is substantiated that the cause of periodic recession of the Ukrainian economy in the nineties of the XX and early XXI century is neglecting of changes that have occurred in the laws of complex economic systems development in the XX century, the loss of state control over social and economic processes in the country, insufficient financing of scientific researches, and implementation of new technologies. It is shown the discrepancy in actions of the National Bank of Ukraine, the Ukrainian government and demands of the national economy for loans. Conclusion. In order to eliminate these causes and providing dynamic development of Ukraine, it is suggested to use the experience of the European integration of neighbouring countries, to create a favourable legal and tax climate to attract foreign and domestic investment, strengthen law enforcement activities for the unshadowing of the national economy, provide structural transformation of cost-inefficient and unprofitable industries, improve the system of taxation entities and persons incomes, ensure equitable distribution of incomes in the country. It is recommended to increase spending on state funding for science and innovation, and implement a set of measures in order to make loans available to local manufacturers and consumers.

Keywords: Ukrainian economy; recession; European integration; tax burden; innovation; credit resources (search for similar items in EconPapers)
JEL-codes: E12 E52 O32 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:bal:journl:2256-0742:2018:4:4:8

DOI: 10.30525/2256-0742/2018-4-4-50-55

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