Economic affordability of food as a component of the economic security of Ukraine

Abstract

Economic security can be considered as an economic aspect of the life of an individual or household that provides the opportunity to achieve financial stability and improve living standards. In this context, understanding the impact of economic affordability of food on the economic security of the country is of great importance. The authors propose to use the indicator of economic affordability of food for in-depth analysis of the economic security of the country. Indicators that determine the level of economic affordability of food products in Ukraine for 2000–2018 are calculated. The regression analysis made it possible to establish a close relationship between the indicators of food expenditures and the level of GDP per capita, between the level of income and expenditure of food of decile groups. Correlation coefficients between the consumption of six basic foodstuffs and the level of per capita income in Ukraine are determined. The obtained indicators, which determine the economic affordability of food, allow us to conclude that there is a lack of economic protection at the level of individual low-income households. Overcoming economic instability and minimizing the possible consequences of the low level of economic affordability of food should become one of the main tasks of Ukraine’s economic security.

Проблеми Розвитку Економічної Безпеки В Україні: Виклики Та Можливості

“…Although per capita income increased by 2.7 times during this time period, these high figures did not change the trend in general: these calculations did not compensate for the rise in food prices, i.e. the trend towards the gradual impoverishment of the population was increasing (Mostenska et al, 2022).…”

“…During 2015-2021, a certain tendency was formed in the economic entities of the machine-building complex, which was the orientation on the use of imported equipment, significant dependence on imported technologies, and the corresponding projected foreign policy situation in the world (Ptaskhsenko et al, 2019). According to Ukrainian researchers, following this vector led to a noticeable uncertainty in the machine-building complex (Mostenska et al, 2022). Additional challenges include: ▪ unfavorable trends in the decline of economic security;…”

“…Environmental problems caused by war: deterioration of the living environment, drinking water, air, destruction of forests due to fires resulting from hostilities, pollution of rivers, etc. (Mostenska et al, 2022).…”

Evaluating the influencing factors of food imports within belt and road initiatives (BRI) countries: An economic threshold model approach

“…Likewise, when demand is less than supply, it will be converted to grain export or food reserves (Porkka et al, 2017). However, the level of economic development determines the structure of grain demand and when the level of economic development is low, the demand for traditional grain crops such as wheat, corn, soybean, and rice is large, and the total demand for grain imports is also large (Mostenska et al, 2022). With the continuous development of the economy, the adjustment of the food consumption structure has been accelerated, the consumption of rations of these grains has dropped significantly, and the consumption of non-staple food has increased significantly (Rush and Obolonkin, 2020).…”

Financial losses of Ukraine’s agricultural exports and ensuring food security during martial law

“…There is research on the concept "economic security" at the individual or household level, which affects the economic affordability of food and economic security of the country. A close relationship has been established between food consumption indicators and the country's macroeconomic indicators (Mostenska, et al, 2022).…”