Public Sector in the Transformation Economy of Ukraine: Macroeconomic Analysis
Abstract: The purpose of the article is to study the conditions and prospects for the development of the state sector of the Ukrainian economy and to determine the functions and tasks of state-owned enterprises in a transformational economy. The information base of the empirical research is the data of the official website of the Ministry of Economic Development, Trade and Agriculture of Ukraine for 2014-2020. The methodological and methodical sources lie in the provisions of the economic code, the Classifier of institu… Show more
Search citation statements
Paper Sections
Citation Types
Year Published
Publication Types
Relationship
Authors
Journals
Cited by 5 publications
References 14 publications
In recent years, many European studies have focused on municipal companies’ problems, particularly their efficiency in terms of public importance and quality of services provided and return on capital. These issues are directly related to the current series of topical issues of the expediency of public property and issues of reasonable choice between public property and privatization. In our opinion, one of the criteria for the expediency of a business entity being in public ownership is the efficiency of its activities, in particular financial efficiency. This paper aims to clarify the local authority approach to determining the efficiency of municipal-owned enterprises in the capital of Ukraine.In the research, the dynamic and distribution of budget funds between the municipal-owned enterprises of Kyiv were studied, and the dynamics of their return on assets were analyzed. In the course of the research financial statements data of the 128 municipal enterprises were collected and analyzed. It is established that the largest recipients of budget funds are municipal construction companies, while municipal public transport companies receive insufficient funding to cover their needs. The four-year distribution of return on assets was also studied, and its miserable level was stated. With the hypothesis testing regarding the impact of budget financing on the municipal-owned enterprises' efficiency, it is established that the availability and level of budget financing of investments and the presence of budget funds in the revenues of municipal-owned enterprises do not have a significant impact on their profitability.
In recent years, many European studies have focused on municipal companies’ problems, particularly their efficiency in terms of public importance and quality of services provided and return on capital. These issues are directly related to the current series of topical issues of the expediency of public property and issues of reasonable choice between public property and privatization. In our opinion, one of the criteria for the expediency of a business entity being in public ownership is the efficiency of its activities, in particular financial efficiency. This paper aims to clarify the local authority approach to determining the efficiency of municipal-owned enterprises in the capital of Ukraine.In the research, the dynamic and distribution of budget funds between the municipal-owned enterprises of Kyiv were studied, and the dynamics of their return on assets were analyzed. In the course of the research financial statements data of the 128 municipal enterprises were collected and analyzed. It is established that the largest recipients of budget funds are municipal construction companies, while municipal public transport companies receive insufficient funding to cover their needs. The four-year distribution of return on assets was also studied, and its miserable level was stated. With the hypothesis testing regarding the impact of budget financing on the municipal-owned enterprises' efficiency, it is established that the availability and level of budget financing of investments and the presence of budget funds in the revenues of municipal-owned enterprises do not have a significant impact on their profitability.
The paper aims to analyze the Ukrainians income structure, to study of the ratio of real, nominal wages and the consumer prices index; to draw a scatter diagram, which makes it possible to make assumptions about a logarithmic nature of the relationship between indicators of average annual wages and GDP growth per capita by countries; to study the correlation between average annual rates GDP growth per capita and wages based on correlation-regression analysis; to determine the ways to improve the well-being in modern conditions. The living standard of the population is one of the main socio-economic categories that not only characterizes the material well-being of a person, but determines the overall result of the country's economy for a certain period as well. Satisfaction of needs has always been a vital condition of people's life. Material well-being with the income as focal point is a key factor in the population living standard analysis. All people work for the sake of obtaining an income that satisfies their needs, and, under favorable conditions – enjoy saving some income, investing in assets, being engaged in charity. The amount of income is often insufficient to meet the most important human needs. Currently, the majority of Ukrainians live below the poverty line, and the skilled workforce has emigrated abroad. Therefore, there arises the need for state regulation of wages, for reducing the disparity in income between the rich and the poor, for searching other sources of income for the population. The issue of the formation of incomes has been studied by many outstanding scientists, but the issue of formation of the population income as one of the factors of the population well-being has not lost its relevance and needs further study and research. The income of the population is one of the population welfare factors determining the level of their life activity. Periodicals, scientific papers, Internet sources, statistical information, scientific and methodical literature make the information base of the research. A scatter diagram of population incomes distribution in the world's countries by average annual growth rates wages and GDP per capita, correlation-regression model dependencies between average annual growth rates of GDP per capita and salary is used as one of the research methods. The economic-mathematical, calculation-constructive and correlation-regression methods were used in the study was well. Incomes of the population are the main source of satisfying their needs for consumer goods and services, and the level of population life quality is measured in quantity and quality of goods that they can purchase with their incomes. the quality of housing conditions and medical services depend on the income level. Wages make the main source of Ukrainian population income. In 2020, it made 62,3% in the total income structure of the population of Ukraine. In 2020, the nominal salary of the population amounted to 110,4% compared to the previous year, and real wages, made 107,4% taking into account the price factor. That is, the average rate of nominal wage growth is 13,4 percent ahead of the average real wages growth rates which indicates deterioration of the material situation of the population, inflationary processes in economy leading to wage depreciation and purchasing capability decline. The average salary in Ukraine in 2021 was UAH 14,577. Compared to 2020, it increased by 40% (UAH 10,340). The highest level of the average monthly salary in 2021 was in the industrial developed regions (Kyiv - UAH 21,347, Donetsk oblast - UAH 15,480, Kyiv oblast - UAH 15,152, Zaporizhzhia oblast - UAH 14,510 and Dnipropetrovsk oblast – 14,479 UAH. The lowest level is observed in the Volyn oblast (UAH 11,735), Kirovohrad oblast (UAH 11,658), Ternopil oblast (UAH 11,455) and Chernivtsi oblast (UAH 11,326). This differentiation of wages is predetermined by the specifics of these regions and the structure of their economic development. The indicator of the wages share in GDP was 46.2% in 2021 (to be compared with the average in the EU, salaries make up 50% of GDP). This is a good indicator for Ukraine, but the size of the GDP is low. In 2021, GDP of Ukraine made only 2.7% of the analogue for the USA, 12,1 – for Germany, 17,3% - for Great Britain and 41,4% for Poland that indicates the poverty of our country. Income growth during the studied period by almost exceeds the level of inflation by 27,9-31,4% and indicates an increase in well-being population. However, according to the IMF data regarding the rating of GDP volumes per capita in 2019, Ukraine ranked last among the world countries. During 2020-2021, Ukraine ranked 101st among the 199 world countries. The scatter diagram makes it possible to assume the presence of a logarithmic nature of the relation between the average annual wages growth and GDP per capita by country. Ukraine, Iceland, Estonia, Latvia, Lithuania, Hungary and Poland are among the countries with high GDP and wages growth rates. A low GDP and wages growth rate is observed in Australia, the Netherlands, Greece and Belgium. The correlation-regression model of the dependence between the average annual GDP growth rates per capita and wages confirms that the size of GDP per capita affects the average annual wages and this dependence must be high. Unfair distribution of national income in the country, tax evasion, and a high level of the shadow economy can be the reasons for the lack of a high correlation between the change in GDP per capita and wages in Ukraine. Ukraine is among the countries with the lowest average wages compared to developed countries. Therefore, Ukrainians have to go abroad in search of more acceptable conditions and wages. In addition, the part of the population that has remained living in the country is paid "under the table", they work in unfavorable conditions and are socially unprotected. Therefore, in order to improve the level of welfare of the population, the state should set the minimum wage corresponding to the level of the real living wage; to legalize the payment of wages; to provide benefits and subsidies to the poor and low-income segment of the population with examining their living standard; attract investments and innovations in production processes that will result in wage growth; reduce and simplify the level of taxation, which affects the reduction of the shadow sector of the economy; restrain the level of inflation; create conditions for the development of small and medium-sized businesses which will further create new jobs; reduce the corruption level, etc
The article examines and substantiates the development of marketing strategies of agricultural sector enterprises on the grain markets of Ukraine and the People's Republic of China. In the grain economy of Ukraine, there is an increase in production volumes from 70.06 million tons in 2018 to 84 million tons in 2021, and this gave it the opportunity to become one of the powerful producers and exporters of grain crops in the world grain market. This was facilitated by: improvement of grain cultivation technologies, grain processing, drying and fumigation systems, creation of modern micro-irrigation systems, implementation of integrated plant protection and nutrition systems in response to climate change, constant improvement of elevator capacities, improvement of the grain storage system. The Chinese market is interesting for Ukrainian exporters. It is the most promising, both from the point of view of economic potential, and from the possibility of increasing the volume of domestic grain supply. After all, the People's Republic of China is a billion-dollar consumer market, taking into account world trade statistics, the main trading partner of many developed countries. This country is among the top ten economies in the world, ranks third in terms of absolute growth and is among the top five importers of domestic agricultural products. The issue of the development of the marketing strategy of agricultural enterprises was studied by prominent domestic and foreign scientists, including: A. Oliynyk, Yu. Turgelya, Yu. Sokolovska, O. Yerankin, R. Logosha, T. Marusei T., N. Murtazina and others. The formation of marketing strategies for increasing the competitiveness of enterprises was studied by: L. Balabanova, V. Gerasimchuk, O. Zozulyova, Yu. Ivanova, O. Kanishchenko, V. Kardash, N. Kudenko, A. Starostina, O. Tyshchenko and others. J. Bisena, R. Kumar, J. Beckman, J. Sheth, J. Zabel investigated the issues of agricultural marketing, electronic agricultural market, and state participation in ensuring the sustainable development of agricultural production. The main methods and information base of the research are: materials of periodicals, works of scientists, Internet sources, statistical information (FAOSTAT, Worldbank), obtaining information through an expert interview (in online format, using modern means of video communication), sample research respondents (30 real interviews, including 12 interviews from Ukraine and 18 from China), scientific and methodical literature. The research also used econometric and economic-statistical research methods (score method, SWOT analysis method, visualization methods, including the method of graphical data interpretation). All calculations provided in this study were carried out using Microsoft Excel spreadsheet software. The use of this software significantly increases the possibilities of practical application of the proposed strategies, since a significant number of farms do not have the opportunity to attract a full-time marketer and purchase specialized software, while the Microsoft Excel spreadsheet is one of the most widespread tools for processing tabular information. The purpose of the study is to study the peculiarities of the formation of the marketing strategy of agricultural sector enterprises on the grain markets of Ukraine and the People's Republic of China. Achieving this goal is possible through the consistent solution of scientific tasks: to systematize the experience of previous research through the analysis of theoretical sources; develop a methodological research design; determine information bases, choose appropriate tools; to carry out an approbation study on the example of enterprises in the agrarian sector of the grain market of the People's Republic of China and Ukraine; to develop basic variants of the marketing strategy of agricultural enterprises in the studied markets. Recently, the global economy has seen an increase in trade between countries, which increases business profitability and satisfies consumer needs for necessary goods and services. After all, international trade contributes to the economic development of countries, expands their opportunities to create and place added value on a much larger foreign market thanks to joining global supply chains. The grain economy of Ukraine is a strategic and most effective branch of the national economy. Grain and its processing products are always liquid and form the basis of the country's food security, which greatly increases the importance of effective marketing strategies of producers during the threat of a global food disaster. The Chinese market is interesting for Ukrainian exporters. It is the most promising, both from the point of view of economic potential, and from the possibility of increasing the volume of domestic grain supply. China is a billion-dollar consumer market. The achievement of marketing strategies of agricultural sector enterprises on the grain markets of Ukraine and the People's Republic of China took place through the development and implementation of a complex multi-stage research project that combined quantitative and qualitative approaches. On the basis of econometric and economic-statistical research methods, mathematical models of the dynamics of grain production in Ukraine and the People's Republic of China were developed, while the approximation reliability values for each series indicate a very high correspondence of the obtained models. Taking into account the impact of a strong negative factor, which is not reflected in statistical data, on the agriculture of Ukraine, in order to take into account the latest challenges of the external environment, a differentiated SWOT analysis was conducted using the expert interview method to assess the main threats and opportunities, strengths and weaknesses of the grain industry of Ukraine. The results of the analysis showed that the following strategies should be recognized as the most acceptable strategies in modern Ukrainian realities according to the results of the analysis: a strategy of cooperation, which will allow to more effectively solve those problems that are in the area of influence of the enterprise; a cost minimization strategy or a survival strategy, the purpose of which is to preserve the existing production potential until more favorable business conditions; geographic strategy diversification based on the territorial transfer of grain production to safer central and western regions; however, the latter strategy is impossible for farms without an additional state program to diversify the grain industry. According to the results of the survey of experts of the grain market of the PRC, it was established that the outbreak of the COVID-19 pandemic in November-December 2022 did not have a significant impact on the economy of the grain market, therefore, the marketing strategy of balanced development and the strategy of intelligent marketing should be considered the most promising for agricultural enterprises of the PRC involves obtaining additional benefits through the implementation of modern digital innovations
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
Contact Info
customersupport@researchsolutions.com
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Product
Resources
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Copyright © 2025 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.
