THE ECONOMIC SECURITY OF ENTERPRISES IN THE LUHANSK REGION IN CONDITIONS OF POST-CONFLICT TRANSFORMATION

Yuriy Pogorelov, Yevhen Ivchenko

Abstract


The purpose of the paper is to research and present economic security of enterprises in Luhansk region (eastern part of Ukraine) and perspective of future threats for such enterprises in conditions of post-conflict transformation in the East of Ukraine. Methodology. The survey is based on a comparison of official statistic data on state and regional level (Luhansk region, Ukraine) for last 4 years (2013–2016) that cover a period of post-conflict transformation in the East of Ukraine, identifying with method of scenario analysis and expert method the main threats to enterprises of Luhansk region and their effects. Results of the survey showed that economic post-conflict transformation in the East of Ukraine has a great negative effect both on the national economy of Ukraine and its economic security. At the macrolevel, such economic post-conflict transformation caused a significant decrease of export and import operations, salaries, enterprises personnel, and quantity of economic agents that have any economic activity in Luhansk region. Last 2 years, some positive changes are identified. But they do not have a trend character. At the microlevel, such economic post-conflict transformation is characterized by decreasing production and capital investments. Post-conflict transformation in the East of Ukraine caused to emerging specific threats for enterprises in Luhansk region. Such threats are identified and described. Practical implications. Identifying economic trends in Luhansk region as the results of post-conflict transformation in the East of Ukraine is useful both for improving state regulation and support for the economy. Ukrainian enterprises using information about identified threats are able to become ready to neutralize such most critical threats to prepare for them or to avoid them to diminish their impact on enterprises activity. Value/originality. Described dynamics of economic indicators of Luhansk region during last 4 years comprehensively show the depth of negative changes of economic security of enterprises in the Luhansk region in conditions of post-conflict transformation in the East of Ukraine. Identified threats that emerged in conditions of post-conflict transformation in the East of Ukraine are specified and described.

Keywords


enterprise, post-conflict transformation, economic security, threat.

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DOI: http://dx.doi.org/10.30525/2256-0742/2017-3-5-358-366

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