FEATURES OF SOCIO-ECONOMIC DEVELOPMENT OF THE BALTIC STATES AND UKRAINE

Abstract

It is proved that ensuring stable economic growth is now an important task for the governments of all countries. The purpose of the study is to compare socio-economic conditions of the Baltic states and Ukraine in the period of 2006–2016. The subject of the study is peculiarities of social development identified as a result of the analysis of the main components – real GDP, general government spending, and minimum wages. Methodology. It is based on views of recognized Western economists, as well as works of scholars from the Baltic countries and Ukraine. The main method of research is systemic, which allows analysing complex open unbalanced socio-economic systems. In the process of research, such methods also used – comparison, historical, analysis and synthesis, correlation and regression. The views of scholars on the processes of social development are generalized, the dynamics of real GDP are compared, and the correlation-regression analysis of the influence of general government spending and minimum wages on real GDP is performed. In the course of the study, some features of this development are identified by indicators of real GDP, general government spending, minimum wages, and also individual countries. Results. It is proved that peculiarities of socio-economic development of the Baltic countries and Ukraine are an important basis for ensuring the dynamics of this development; they allow forming strategic and current vectors of the development of economies of these countries and, therefore, are socially significant theoretical content. The GDP rates of all countries for the period of 2010–2016 were lower than those that were in 2006–2008, and in relation to Ukraine, these rates were significantly lower for the period of 2006–2016, which confirms the presence of significant social problems. The dynamics of real GDP per person demonstrated the weakness of the financial system of Ukraine to counteract negative factors, where this figure is less than in the Baltic states roughly three times. The indicator of General Government Spending, % of GDP, showed that after the financial crisis, any of the countries failed to reach the pre-crisis level, and this indicator in the Baltic states for 2010–2016 ranged from 35% to 40%, and in Ukraine – from 32% up to 35%. According to the index of minimum wages, it is determined that in the Baltic States it increased more than three times during the analysed period, and in Ukraine it decreased, which was caused both by the global financial crisis and the depreciation of the domestic currency for the period of 2014–2016 more than three times. Practical implications. Ukraine, in order to increase GDP, is recommended to implement measures of the strategic direction, in particular: to summarize documents of strategic content; form a new strategy of social development for up to 20 years; develop appropriate development programs in view of industry and region; provide priority to an innovation vector of development with a focus on universal values. Value/originality. The revealed features of the socio-economic development of the Baltic countries and Ukraine reflect their national specificity and will contribute to a better understanding of the essence of these processes.