Elimination of distortions in the institutional structure of Ukraine's GDI

I. Kryuchkova

Economy and Forecasting, 2013, issue 4, 20-32

Abstract: The author proves, that in Ukraine, in recent years, due to the violation of macro-proportions in the sectoral structure of gross disposable income (GDI), a disinvestment model of economic development has emerged and consolidated, which lowered the competitiveness of the domestic producers leading to increased loss of their presence both on the foreign and on the domestic markets. Further retaining of the low level of GDI in the sector of non-financial corporations leads to the underfunding of the renewal of the fixed assets and threatens with this country's economic decay even in case of a revival of the international trade. At the same time, the article shows that the considerable decline of the GDI level in the sector of general state management is taking place due to the accumulation of the excesses in the rates of cumulative dynamics of the legally established social standards meant to match the increases in consumer prices, which expands the gap between the volumes of social contributions and social transfers with a corresponding impact on the increase in the sector's deficit.

Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:eip:journl:y:2013:i:4:p:20-32

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