Strategies for economic development: the Ukrainian case
Keywords:
economic strategy, economic ideology, strategic principle, processing industry, postwar economy, economic development.
Abstract
The article studies the peculiarities of economic strategies of developed countries of the world and carries out a comparative analysis of the strategic goals of Ukraine and Poland. Based on correlation and graphical analysis, it is proved that the basis of economic growth of Poland, which had actually the same starting conditions as Ukraine after the collapse of the USSR, is the economic ideology, which provides for the development, stimulation, and support of the processing industry. In particular, the study showed that it is the deindustrialization of the Ukrainian economy and the reduction of processing industry products in the structure of Ukrainian exports leads to a slowdown in the growth rate of absolute GDP and GDP per capita, in Poland, there are cardinally opposite trends. The formation of economic strategies within the framework of the ideology of stimulation of the processing industry adapts macroeconomic policy to meet such goals by increasing capital expenditures, implementation of state-targeted development programs, debt financing. Besides, an important strategic principle of Ukraine's economic strategies should be the principle of increasing capital expenditures of the state budget, at the expense of deficit and debt financing of target programs of the economic market.
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References
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Buriak, Ie. (2019). The regional development in the conditions of social and economic consolidation. The causality of the development of municipalities and regions from the point of view of integration processes, tax policy and tourism, 1. vol. (p. 67-77). https://vsers.cz/wp-content/uploads/2019/10/Sbornik_2019.pdf
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Driessen, A. G. (2019). Deficits, debt, and the economy: An introduction. In Congressional Research Service, US Congress (Vol. 44383). Retrieved from https://www.everycrsreport.com/files/20190415_R44383_a49a437b644e3304d7b51d7b6d60008b0f1ed2f8.pdf
Feldkircher, M., Huber, F., & Pfarrhofer, M. (2020). Measuring the effectiveness of US monetary policy during the COVID-19 recession. In arXiv [econ.EM]. http://arxiv.org/abs/2007.15419
Gadomski, W. (2017). Polish strategies of economic development [Polskie strategie rozwoju gospodarczego]. Obserwator finansowy. Retrieved from https://www.obserwatorfinansowy.pl/tematyka/makroekonomia/polskie-strategie-rozwoju-gospodarczego/
Kibik, O., Taran-Lala, O., Saienko, V., Metil, T., Umanets, T., & Maksymchuk, I. (2022). Strategic vectors for enterprise development in the context of the digitalization of the economy. Postmodern Openings, 13(2), 384–395. https://doi.org/10.18662/po/13.2/460
Kołodko, G. W. (2019). Determinants and long-term implications of the strategy for Poland. Gospodarka Narodowa, 298(2), 65–93. https://doi.org/10.33119/gn/108606
Kyiv School of Economics (2022, May 25). Direct damage caused to Ukraine’s infrastructure during the war has reached over $105.5 billion. Retrieved from https://kse.ua/about-the-school/news/direct-damage-caused-to-ukraine-s-infrastructure-during-the-war-has-reached-over-105-5-billion/
Liu, J. (2021). Three Types of Economic Strategies in Japanese History. In E3S Web of Conferences (Vol. 233, p. 01157). EDP Sciences. https://doi.org/10.1051/e3sconf/202123301157
National Bank of Ukraine (2022). External sector statistics. Retrieved from https://bank.gov.ua/ua/statistic/sector-external
Popelo, O., Garafonova, O., Tulchynska, S., Derhaliuk, M., & Berezovskyi, D. (2021). Functions of public management of the regional development in the conditions of digital transformation of economy. Amazonia Investiga, 10(43), 49-58. https://doi.org/10.34069/AI/2021.43.07.5
Porter, M.E. (2011) HBR’s 10 Must Reads on Strategy. Harvard Business School Publishing. Retrieved from: https://www.scribd.com/read/353493971/HBR-s-10-Must-Reads-on-Strategy-including-featured-article-What-Is-Strategy-by-Michael-E-Porter
Song, G. (2018). China’s economic strategy in Asia. Asian Education and Development Studies, 8(1), 2-13. https://www.emerald.com/insight/content/doi/10.1108/AEDS-08-2017-0083/full/html
State Statistics Service of Ukraine. (2022) International economic activity and balance of payments Retrieved from http://www.ukrstat.gov.ua
The Heritage Foundation (2022). Index of economic freedom. Retrieved from https://www.heritage.org/index/visualize
The Price of the State (2022). Budget of Ukraine. Retrieved from http://old.cost.ua/en/budget/expenditure/
Trifonova, S., & Kolev, S. (2021). Impact of the Fed’s unconventional monetary policy on the us financial market. Eurasian Journal of Economics and Finance, 9(3), 145–158. https://doi.org/10.15604/ejef.2021.09.03.001
The Word Bank. (2022) World Development Indicators Retrieved from https://databank.worldbank.org/indicator/BN.KLT.DINV.CD/1ff4a498/Popular-Indicators/
Verkhovna Rada of Ukraine. (2004). Strategy of economic and social development of Ukraine for 2004-2015 «Through European integration». Retrieved from https://zakon.rada.gov.ua/laws/show/493%D0%B0/2004
Yaomin, H. (2020). China's economic growth path. Odesa: Helvetica Publishing House. https://www.yakaboo.ua/ua/shljah-ekonomichnogo-zrostannja-kitaju.html#media_popup_fragment
Zolkover, A., Kaplina, А., Loboda, O., Kyrychenko, N., & Chopko, N. (2021). Features of the influence of human capital on economic development: The case of Ukraine. Journal of Eastern European and Central Asian Research, 8(3), 425–437. Doi: 10.15549/jeecar.v8i3.763
Published
2022-10-10
How to Cite
Okhrimenko, O., Chynchyk, A., Dergach, A., Bannikova, K., & Nesterenko, O. (2022). Strategies for economic development: the Ukrainian case. Amazonia Investiga, 11(55), 234-248. https://doi.org/10.34069/AI/2022.55.07.25
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