INSTITUTIONAL CONDITIONS FOR ENSURING RESILIENCE OF NATIONAL ECONOMY: ON THE EXAMPLE OF UKRAINE

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  Vasyl Lagutin

  Alina Boiko

  Diana Shkuropadska

Abstract

The national economies are closely interconnected in a globalized world. Shock impacts spread across the globe from one economy to another instantly. In the same time, national economies are characterized by different levels of resilience and respond differently to shock effects. From a theoretical and practical point of view, there is an important task to study the institutional conditions for ensuring the resilience of the national economy to existing and potential shocks. The purpose of this research is to substantiate and characterize the institutional conditions for ensuring the resilience of the economy on the example of the Ukraine’s economy. The theoretical and methodological basis of the research is the scientific works and reports on the methodology of evaluation and determination of mechanisms and conditions for ensuring the resilience of the economy. Common scientific methods are used: theoretical generalization, analysis and synthesis, comparative analysis, system method, and criterion approach. Results. The research describes institutional conditions that strengthen internal reserves (including financial, material, food) and increase the adaptive potential of the economy to shocks. Adaptation of the economy depends on the effective and rational management of the country's resource potential. Resource potential is an internal immunity of the economy and increases its level of resilience at all stages of development. The country's resource potential is characterized by available resources and consists of such basic types of potentials as economic, natural, labor, social, financial. In the process of resource management the government should take into account the basic institutional conditions for ensuring resilience of the economy, which are aimed at improving the state's ability to protect property rights, increasing the financial capacity of the insurance market, anti-corruption and economic potential of the country, and institutional capacity of public authorities. Practical implications. Institutional conditions for ensuring the resilience of the economy are able to reduce the vulnerability of the economic system to shock influences, to facilitate their effective counteraction and to prompt economic recovery after their onset. The development of institutional conditions depends on effective government policies and mechanisms to counteract shock influences. Originality. The study focuses on the role of the government in the implementation of institutional conditions. In order to improve certain institutional conditions, government policy instruments have been proposed, the application of which will contribute to the effective development of the entire system of institutional ensuring resilience of the economy.

How to Cite

Lagutin, V., Boiko, A., & Shkuropadska, D. (2020). INSTITUTIONAL CONDITIONS FOR ENSURING RESILIENCE OF NATIONAL ECONOMY: ON THE EXAMPLE OF UKRAINE. Baltic Journal of Economic Studies, 6(3), 76-86. https://doi.org/10.30525/2256-0742/2020-6-3-76-86
Article views: 48 | PDF Downloads: 31

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Keywords

resilience of the economy, institutional conditions, ensuring resilience, shock influences, economic growth

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