Oleksii Lyulyov

The problem of instability of industries, clusters and states influences the countries’ economies. Unavoidable changes became an attribute of the strategic planning at every level. As a result, an effective tool is needed to evaluate stability at different levels in such a way that will make it possible to manage the changes. In this paper the concept of Macroeconomic Stabilization Pentagon (MSP) was analyzed for its applicability for the EU countries of low-an-middle-income economies including Ukraine. The data analysis brought new understanding of the assessment of the public policies’ effectiveness. The model has proven its efficiency not just in the sphere of public administration, but also for the micro level management. The authors proposed the Microeconomic Stabilization Pentagon to be implemented in the research at the level of enterprises

According to reports data of the International Institute of Management Development (IMD) and World Economic Forum (WEF), contries’ competitiveness tendencies were defined: rate of global competitiveness index remains lower than the rate, achieved before the global financial and economic crisis, non-linear distribution of benefits from economic growth between EU countries, Ukrainian rating falling by macroeconomic stability by 21 points in 2017 in comparison with 2018. It is not unexpected that realization of countries’ policy concerning their competitiveness growth requires some cost. Thus, author supposes that it is important to study key aspects of state finance, which can have great impact on the international competitiveness and solve the country’s macroeconomic stability problem. This paper shows results of author’s own research, carried out using methodic tools of scientists Ahvaz Shahid Chamran University, Ahvaz, Iran Abdolmajid Ahangari and Aziz Arman. It is based on evaluation of instability time rows of four economic variables of inflation (TINF), the ratio of budget deficit on growth domestic product (GDP) (TBD), foreign debt on GDP (TFD) and exchange rate deviation from the previous period (TRO) and calculation of macroeconomic instability index on their base MII_tn. Research showed that all variables of macroeconomic instability index MII_tn have a positive correlation; therefore, subindex of inflation rate instability and subindex of exchange rate to the previous period have the largest impact on the macroeconomic instability index MII_tn .

The main objective of this research is to study the role and impact of fiscal decentralization on the macroeconomic stability of the country. The paper analyzes and systematizes approaches to the definition of ‘macroeconomic stability’ concept. The key factors that impact macroeconomic stability are identified. In the framework of this research, the authors identify fiscal decentralization as one of the factors affecting macroeconomic stability. To determine the strength and statistical significance of the above mentioned relationship, the authors suggest presenting macroeconomic stability as a functional dependency between macroeconomic stability and the level of fiscal decentralization, which is described by the following variables: the growth rate of money supply, investment and openness of the economy, fiscal decentralization. In this case, it is suggested to determine the level of fiscal decentralization in three directions: expenditure decentralization, revenue decentralization and expenditure decentralization simultaneously.

The main task of the article is to assess the development process of the macroeconomic stabilization in Ukraine during 1997–2016. The work shows the results of author’s own research, carried out using the method of tools given by director of Finance Institute in Warsaw, Professor of Economics Kolodko. This method is based on the assessment of five key macroeconomic indices: GDP rate growth, unemployment rate, inflation rate, state budget balance to GDP, balance of current turnovers to GDP. The results of calculations show that macroeconomic stability level, which is higher than 0.5 was demonstrated by the country only during 1999–2007, and during this period general internal and external stability is kept. Based on the macroeconomic predictions of GDP rate growth, unemployment rate, approved by the Cabinet of Ministers of Ukraine and on the data extrapolation of consumer price index, state budget balance, current account balance, Ukraine’s MSP profile for 2018–2020 was constructed.

The paper deals with analysis of the mechanism of macroeconomic imbalance estimation and achieving the convergence of national economy. With this purpose the authors summarized the main approaches to define the macroeconomic imbalance. In addition, the main indicators which influence macroeconomic imbalance are allocated. On the basis of obtained results, the authors offer to employ the macroeconomic imbalance procedure which is used in EU countries for investigation. In order to achieve this external, internal and employment indicators in EU were analyzed by authors. Besides, with the purpose to indicate Ukrainian place comparing with EU, in particular with Visegrad Countries, the main indicators of MIP for Ukraine were calculated by the authors. According to the results, the authors made conclusion that the Ukrainian economy can be characterized as not stable (as in Bulgaria, Hungary and the Slovak Republic). Moreover, the authors allocated for the future research the necessity to understand the power of countries impact to each other with the purpose to achieve and save the convergence of national economy.

The main goal of the article is to analyze the role and influence of economic freedom on macroeconomic stability. For this purpose, the authors used the integrated index of economic freedom, calculated by the Heritage Foundation and Democracy Index. It is noted that this index indicator was calculated by the experts from the World Bank using the index of voice and accountability. In the paper, the authors used the multinational panel dataset for 11 countries of the EU for the purpose of checking the correlation between economic freedom, democracy and macroeconomic stability. It should be highlighted that the abovementioned 11 countries are related by the fluctuation of economic growth during the transformation process (1996–2016) from communist party to the democracy and political pluralism. In addition, the authors proposed to add the indicators of political stability and trade openness, which allowed to take into account implementation of flexible macroeconomic instruments, including monetary policy, which towards increasing the economic growth, employment and financial development of the countries. The findings are directed received using the regression equation with fixed and random effects showed the high level of correspondence of the model used with the original observations. Despite the chosen approach to estimate the macroeconomic stability, the findings showed that there is a positive and statistically significant impact of economic freedom and democracy on macroeconomic stability.

The paper deals with analysis of the preconditions of alternative energy market development in Ukraine. In this case study, the authors analyzed the EU experience. The results of analysis showed that the leader of the EU countries in renewable energy has already achieved the target (20%), which had been indicated. In addition, the findings showed that the share of renewable energy in gross final energy consumption has been increasing from year to year. The authors allocate that, according to the Ukrainian potential, biogas is the most perspective one among alternative resources. Moreover, results of analysis showed that Ukraine has the huge potential of agricultural sector. In this direction, the authors allocated the main types of the agricultural activities, which have the highest potential of biogas production: sugar factories, corn silage and poultry farms. The authors underlined that biogas spreading is restrained by the stereotypes that green investments are not attractive for investors. In order to analyze the economic efficiency of investments to the biogas installation, the authors calculated the profit from the biogas installation for poultry farm. The authors made two scenarios for calculation. The first – the whole volume of energy, which was generated from the biogas unit, will be sold with feed-in tariff. The second – the farm covers its own needs in electricity, the rest will be sold with feed-in tariff. The findings showed that the first scenario is more attractive. Moreover, the farm could receive higher profit if it installed the biogas in 2016, not in 2017. In addition, based on the EU experience and features of farm functioning, the authors approved that the biogas installation has not only the economic effect (profit and additional profit) for company, but also ecological and social effects for rural area, where this farm was located.

The paper deals with the analysis of methodology of Environmental Performance Index. The authors analyzed and systematized the main existing integrated indices, which were used for evaluation of environmental, social and economic situation in the countries. The authors allocated the environmental performance index as a basis for analyzing the environmental policy of the country. In this direction, the authors analysed the main features, structure and indicators of environmental performance index. The authors allocated the world-leader countries with huge level of CO2 emissions. According to the results, the authors aproved that these countries should improve their environmental policy. Accordingly, they occupied less position in environmental performance index. For the purpose to analyze the relation between ecological, social and economic welfare, the authors analyzed score of sustainable development goal index, social progress index and gross domestic product per capita. The comparison analysis of findings showed that countries with good position on environmental performance index have the strong position on sustainable development goal index and social progress index. The authors suggested that Ukraine should orient to the EU countries with purpose to improve the environmental policy.

Rapid economic reforms and proper GDP growth in China has affected the regional development of Chinese provinces. This study aims to estimate the degree of economic and environmental disparities within Chinese provinces for developing policy recommendations of regional transformation. The reduced log-linear specification of endogenous growth model is used for the estimation of convergence rates within Chinese provinces. The empirical results prove that an increase of 1% in GDP per capita basic year reduces the economic growth rate by 0.1% in the reference year. Thus, the ratio of the average per capita income in the wealthiest group to poorest provinces accounted for the factor 9.6 in 1995 and factor 4.1 in the year 2015, which means a reduction of disproportionate development. Environmental convergence trends were also found and less polluted provinces eventually increase emissions at higher rates than the initially polluted ones. With the pass of time, all provinces do move to the same steady state in environmental parameters. The speed of the economic and environmental convergence in China provinces is rather slow, and the economic growth was achieved by great sacrifices of an environment, since all provinces are striving to the same steady state in terms of pollution increase. The industrialized regions due to the presence of significant financial resources should pay more attention to the protection of the environment using all the available economic potential. At the same time, both initially poor provinces and rich have to develop more profoundly agriculture, tourism, recreation, and other environmentally friendly industries to improve economic performance.