Vasyl Lagutin

  Alina Boiko

  Diana Shkuropadska


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.
Article views: 261 | PDF Downloads: 264



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


Beck, Т., & Laeven, L. (2005). Institution Building and Growth in Transition Economies. Policy research working papers. Washington: World Bank. Retrieved from: (accessed 06 March 2020).

Boiko, A., Shkuropadska, D., Hladka, Yu., and other (2019). Stiykistʹ ekonomiky: otsinyuvannya ta zabezpechennya [Resilience of the economy: assessment and ensuring]. Kyiv: KNUTE. (in Ukrainian)

Briguglio, L., Cordina, G., Farrugia, N., & Vela, S. (2009). Economic vulnerability and resilience concepts and measurements. Oxford Development Studies, vol. 37(3), pp. 229–247. doi:

Caldera, A., Rasmussen, M., & Rohn, О. (2015). OECD Economics Department Working Papers. Economic resilience: what role for policies? 1251, 1–46. doi:

Cameron, K., & Quinn, R. (2005). Diagnosing and changing organizational culture: Based on the competing values framework. San Francisco: Revised edition.

Coase, R. (1990). The Firm, the Market, and the Law. Chicago: University of Chicago Press.

Dutraive, V. (2009). Economic Development and Institutions. Anatomy of the New Institutional Economics' research program. OpenEdition Journals, 1–16. Retrieved from: (accessed 06 March 2020).

European Central Bank (2016). Towards more resilient economies: the role of well-functioning economic structures. Working Paper Series, 1984, 1–22. doi:

European Commission (2018). The resilience of EU Member States to the financial and economic crisis. Luxembourg: Publications Office of the European Union. doi:

Ferrini, L. (2012). The Importance of Institutions to Economic Development. E-International Relations. Retrieved from: (accessed 06 March 2020).

FM Global Resilience Index (2019). Research & Resources. FM Global. Retrieved from: (accessed 06 March 2020).

Geyets, V. (2005). Instytutsiyni peretvorennya i suspilʹnyy rozvytok [Institutional transformations and social development]. Ekonomika i proghnozuvannja, vol. 6, pp. 9–36. Retrieved from: (accessed 06 March 2020).

Guterres, А. (2018). Corruption is costing the global economy $3.6 trillion dollars every year. World Economic Forum. Retrieved from: (accessed 06 March 2020).

Hancke, B., & White, J. (2019). Institutional Roots of Economic Decline: Lessons from Italy. LSE, vol. 143, pp. 1–36. Retrieved from: (accessed 06 March 2020).

International Monetary Fund (2019). Building Resilience in Developing Countries Vulnerable to Large Natural Disasters, 19/020, 1–55. Retrieved from: (accessed 06 March 2020).

Kling, A. (2013). The Institutions-Intensive Economy. The Library of Economics and Liberty. Retrieved from: (accessed 06 March 2020).

Kotys, N. (2016). Otsinka instytutsiynoho zabezpechennya rozvytku sektoru domohospodarstv [The assessment of the institutional support of development of the household sector]. Ekonomichnyy visnyk Zaporizʹkoyi derzhavnoyi inzhenernoyi akademiyi, vol. 6(1), pp. 51–55. Retrieved from: (accessed 06 March 2020).

Kryuchkova, I. (2010). Ekonomika Ukrayiny: shokovi vplyvy ta shlyakh do stabilnoho rozvytku [Ukraine's economy: shock influences and a path to stable development]. Kyiv: Instytut ekonomiky ta prohnozuvannya NAN Ukrayiny. (in Ukrainian)

Law of Ukraine 2469-VIII (2018). On the Fundamentals of National Security of Ukraine. Retrieved from: (accessed 06 March 2020).

MacLeman, H., Miller, A., & Marty, L. (2017). Resilience systems analysis: Learning and recommendations report. Organisation for Economic Co-operation and Development. Retrieved from: (accessed 06 March 2020).

Mantsurov, I. (2011). Instytutsiyne planuvannya v systemi derzhavnoho rehulyuvannya ekonomiky [Institutional planning in the system of state regulation of the economy]. Kyiv: NDEI. (in Ukrainian)

Ministry of Finanse of Ukraine (2018). Valovyy vnutrishniy produkt Ukrayiny [Gross domestic product of Ukraine]. Retrieved from: (accessed 06 March 2020).

North, D., & Denzao, A. (1993). Shared mental models: ideologies and institutions. Munich: University Library of Munich.

OECD (2017). Economic resilience: Vulnerability indicators. Retrieved from: (accessed 06 March 2020).

OpenDataBot (2018). Z 2014 roku kilʹkistʹ reydersʹkykh zakhoplenʹ zrostaye shchoroku [Since 2014, the number of raiders has grown annually]. Retrieved from: (accessed 06 March 2020).

Property rights alliance (2018). International Property Rights Index. Retrieved from: (accessed 06 March 2020).

Protocol to the Convention for the Protection of Human Rights and Fundamental Freedoms 994_535 (1997). Retrieved from: (accessed 06 March 2020).

Shkuropadska, D. (2018). Zakhyst prav vlasnosti na pryrodni resursy yak orhanizatsiyno-pravova umova stiykosti ekonomiky [Protecting property rights for natural resources as an organizational and legal condition for economic resilience]. Aktualʹni pytannya ekonomichnykh nauk. Retrieved from: (accessed 06 March 2020).

State Service of Geology and Subsoil of Ukraine (2018). Retrieved from: (accessed 06 March 2020).

The Constitution of Ukraine 254к/96-ВР (1996). Retrieved from: (accessed 06 March 2020).

Transparency International Ukraine (2018). Corruption Perceptions Index. Retrieved from: (accessed 06 March 2020).

Ukrainian Helsinki Human Rights Union (2016). Pravo vlasnosti [Property right]. Retrieved from: (accessed 06 March 2020).

Vitola, A., & Schenfelde, M. (2015). The role of institutions in economic performance. Business: Theory and Practice, vol. 16(3), pp. 271–279. doi:

World Bank Open Data (2018). GCI 4.0: Life insurance premiums. Retrieved from: (accessed 06 March 2020).

World Bank Open Data (2018). GCI 4.0: Non-life insurance premiums. Retrieved from:,2018 (accessed 06 March 2020).