Baltic Journal of Economic Studies

“IT HAS TO START AT THE TOP”: LEADERSHIP, PSYCHOLOGICAL SAFETY, AND ADAPTIVE CULTURE CHANGE IN A LARGE INFRASTRUCTURE ORGANISATION

2026-11-02T09:29:23+00:00

Transforming the culture of large infrastructure organisations is a strategic challenge because effective coordination, safety and performance depend on how people share information, handle disagreement and collaborate across functional boundaries. However, organisations often treat culture change as a planned implementation project. Less is known, though, about how leaders and specialists make culture visible, credible and usable in everyday work. This study examines the experiences of leaders and specialists during a large-scale culture transformation at Isavia, the operator of Keflavík Airport in Iceland. It also explores what this case reveals about leadership, psychological safety, and the limitations of linear change management models. The present study employs an interpretive qualitative single-case design, demonstrating a phenomenological sensitivity to participants' lived experiences. The empirical material consists of nine semi-structured interviews with senior leaders, middle managers, human resources specialists (HR), and project managers, contextualised by Organizational Culture Inventory measurements from 2021, 2023, and 2025. The findings show that senior leaders made the transformation credible by modelling vulnerability, engaging in personal development, and demonstrating cultural ideals through their behaviour. The Organizational Culture Inventory was used not only as a diagnostic tool, but also to provide a shared behavioural language that helped employees discuss defensive patterns without personalising conflict. Psychological safety enables more constructive disagreement, reduces silo thinking and strengthens cross-functional collaboration. The study also identified middle managers as a weak link when top-level commitment was not reflected in everyday routines, expectations and conversations. The study contributes to organisational culture and change management literature by conceptualising large-scale cultural transformation as an adaptive learning process that is supported by cultural measurement, legitimised through visible leadership behaviour and enabled by psychological safety. The case study's practical value lies in demonstrating that organisations should anchor culture transformation in everyday leadership practices, a shared behavioural language and middle management accountability, rather than treating it as a linear change project or an isolated HR initiative. By linking culture transformation to coordination, waste reduction and operational resilience, the case study has relevance for business management and infrastructure studies beyond the specific Icelandic context.

NEXUS BETWEEN STOCK MARKET DEVELOPMENT AND FOREIGN CAPITAL FLOWS: THE MODERATING ROLE OF LIQUIDITY

2026-11-02T09:29:22+00:00

This paper examines the relationship between stock market development and foreign capital flows in nineteen emerging market economies, paying particular attention to the impact of market liquidity. In an era of heightened globalisation, emerging markets are becoming increasingly dependent on well-functioning stock markets to attract foreign capital. However, the mechanisms through which stock market development influences foreign capital inflows are not well understood. The present study aims to address this gap by explicitly incorporating liquidity as a key moderating factor in the nexus between stock market development and foreign capital flows. The present study employs secondary financial data spanning the period from 2005 to 2023 for a panel of selected emerging market economies. The analysis employs the General Method of Moments (GMM), Panel Autoregressive Distributed Lag (ARDL) and ECM modelling techniques. The results show that liquidity has a positive moderating effect on the relationship between stock market development and FDI, whereas illiquidity has the opposite effect. However, liquidity has no moderating effect on the relationship between stock market development and FPI. These results imply that policies that enhance liquidity in emerging markets are essential. Furthermore, a long-term relationship was found between liquidity and FDI, suggesting that improvements in stock market liquidity are likely to have a lasting impact on FDI.

FUEL PRICE INFLATION AND CONSUMER CONFIDENCE IN THE EURO AREA: EVIDENCE OF LAGGED, ASYMMETRIC AND REGIME-DEPENDENT TRANSMISSION

2026-11-02T09:29:22+00:00

The sharp increase in energy prices following the COVID-19 pandemic, the war in Ukraine, and subsequent geopolitical tensions in the Middle East has reignited interest in the relationship between fuel prices and household expectations. While previous studies have focused primarily on international crude oil prices, considerably less attention has been given to retail fuel price inflation and its effect on consumer confidence. This study uses monthly data covering the period from January 2018 to June 2026 to investigate the dynamic relationship between annual fuel price inflation, as measured by the Harmonised Index of Consumer Prices (HICP), and the Consumer Confidence Indicator (CCI) in the euro area. The empirical analysis employs correlation analysis, ordinary least squares regression, and the Chow structural break test to examine the timing and stability of the transmission mechanism. The results indicate an optimal transmission lag of nine months, suggesting that changes in fuel price inflation are gradually reflected in household expectations. Regression analysis revealed a statistically significant inverse relationship between fuel price inflation and the consumer confidence indicator. Furthermore, the estimated effect was significantly stronger during the inflation build-up phase preceding the fuel price peak in April 2022 than during the subsequent unwinding period. The Chow test confirms the presence of a statistically significant structural break, showing that the transmission mechanism depends on the regime rather than remaining constant over time. These findings contribute to existing literature by providing new evidence based on retail fuel prices. They identify the optimal transmission lag and demonstrate the asymmetric response of consumer confidence across the different phases of the inflation cycle.

ORGANISATIONAL CHANGE MANAGEMENT AND IMPACT OF LEADERSHIP ON EMPLOYEE PERCEPTIONS

2026-11-02T09:29:22+00:00

In today's dynamic business environment, organisational change is a key management issue, without which it is impossible for organisations to maintain and develop their competitive position. This study focuses on the psychological and cultural factors that cause resistance to change, including cognitive, emotional, and behavioural aspects, which can hinder the success of change initiatives. During an organisational change, the head plays a decisive leadership role. Their strategic vision and ability to motivate employees and communicate the ongoing process transparently determine the effectiveness of the changes. A total of 520 representatives from 'LTD Batumis Tskal', 'LTD Kobuleti Tskal' and other similar entities participated in the aforementioned study. This number enables a generalisation of the study results to the research object. The paper analyses the reasons for and needs of implementing changes, the skills required of managers to manage changes, and the factors that lead to employee satisfaction in the change process. Hypotheses have been put forward to study these issues, and the verification and justification of these hypotheses reveal the necessary conclusions and recommendations for the effective management of organisational changes. Verifying the presented hypotheses enabled conclusions to be drawn about the factors that determine effective management of organisational changes, the role of managers, employee satisfaction and trust in changes. The study aimed to evaluate employees' attitudes towards organisational changes and to identify the factors influencing their trust in management, satisfaction with the organisation, and willingness to change supervisors. The study was conducted using a quantitative method. Data were collected via questionnaires designed to assess employee satisfaction and awareness, as well as the manager's change management skills. The data obtained were processed using the statistical software package SPSS. The study found that a manager's ability to manage change is the most influential factor in determining employee attitudes. High levels of satisfaction with the organisation significantly reduce the desire to change supervisors. Being aware of the results of changes increases both trust and overall satisfaction. Transparent communication from management simultaneously strengthens trust and loyalty. A lack of information and communication gaps increases employee resistance and dissatisfaction.

INTEGRATION OF GENERATIVE AI SKILLS IN JOB REQUIREMENTS: EVIDENCE FROM JOB ADVERTISEMENTS IN GEORGIA

2026-11-02T09:29:21+00:00

The rapid diffusion of generative artificial intelligence (GenAI) tools has created a demand for new skills in labour markets. However, research into how employers articulate GenAI competencies in job advertisements has focused almost exclusively on large, technologically advanced economies. This study examines how employers in Georgia, a small upper-middle-income transitional economy, indicate GenAI skill requirements in job advertisements, considering four dimensions: skill visibility, linguistic framing, organisational readiness and skill depth. Deductive content analysis was applied to 94 job advertisements collected in January 2026 from three major Georgian labour market platforms (LinkedIn, Jobs.ge and HR.ge). Each advertisement was coded using a structured 20-indicator codebook derived from established theoretical frameworks. The results show that employers articulate GenAI skills in two ways: by explicitly naming the tool, which is present in 38.3 per cent of advertisements, and by using implicit task language, which is present in 61.7 per cent of advertisements and constitutes the dominant form of signalling. Regardless of occupation or skill depth, employers frame GenAI requirements as mandatory in 81.9 per cent of advertisements, indicating the rapid institutionalisation of GenAI literacy as a baseline labour market expectation. Signals of organisational readiness remain weak: only 21.3 per cent of job advertisements acknowledge any organisational role in enabling AI adoption, while the remaining 78.7 per cent present GenAI competence purely as a prerequisite for candidates. Skill complexity is almost evenly divided between basic and advanced requirements, and occupation strongly predicts this division, creating a clear distinction between a technically advanced group and a large group adopting AI on a more general operational level. Signals of organisational readiness remain weak: only 21.3 per cent of job advertisements acknowledge any organisational role in enabling AI adoption, while the remaining 78.7 per cent present GenAI competence purely as a prerequisite for candidates. Skill complexity is almost evenly divided between basic and advanced requirements, and occupation strongly predicts this division, creating a clear distinction between a technically advanced group and a large group adopting AI on a more general operational level.

THE IMPACT OF DIGITAL BANKING AND ARTIFICIAL INTELLIGENCE ON PRIVATE BANKING IN SWITZERLAND: ARE CHANGES AHEAD?

2026-11-02T09:29:21+00:00

Subject of Research. This study focuses on the digital banking landscape and the integration of artificial intelligence (AI) in private banking and wealth management in Switzerland. More specifically, it examines how technological innovations – ranging from process automation and generative AI to advanced data analytics – alter the operational dynamics, customer relations, and structural competitiveness of Swiss private banks in the context of shifting client expectations and rigorous regulatory environments. Methodology. The research employs a qualitative analytical research design that uses triangulation of secondary evidence. It systematically integrates and cross-checks academic literature on digital finance, fintech adoption and robo-advisory trust, alongside empirical data, regulatory frameworks and market insights from reputable Swiss and international organisations. The primary data sources analysed were supervisory guides from the Swiss Financial Market Supervisory Authority (FINMA), reports from the Swiss Bankers Association, digital maturity benchmarks from Deloitte Switzerland and private banking market profitability assessments from KPMG and PwC Switzerland. Purpose. The main objective of this paper is to provide a comprehensive assessment of the impact of digital transformation and the deployment of AI on the traditional Swiss private banking model. By analysing seven key dimensions – technological progress, customer expectations, process optimization, data analytics, risk and security, regulation/compliance, and market trajectories – the study aims to clarify the economic mechanisms driving digital adaptation, identify the structural barriers preventing rapid technology adoption, and evaluate the strategic options available to Swiss banks facing intense global competition and margin compression. Findings and Conclusion. The study reveals a significant discrepancy between Switzerland's position as a global leader in asset management, with CHF 9.3 trillion under management, and its digital banking maturity score of 39 out of 60. Although private banking clients continue to establish relationships based on traditional factors such as reputation, trust and personal referrals, they are also demanding friction-free digital execution, personalised dashboards and virtual investment simulations. AI has been proven to have high economic value when acting as a productivity layer centred around advisors, optimising processes such as client onboarding, document extraction, compliance screening and portfolio monitoring. However, it is not as effective when acting as an autonomous replacement for human relationship managers. Ultimately, the integration of digital banking and AI is causing a clear market polarisation. Large-scale institutions are successfully absorbing the substantial fixed costs associated with technology, data governance and regulatory compliance under the frameworks of FINMA and the European Union (such as DORA and the EU AI Act). Conversely, smaller Swiss private banks are under severe pressure to increase their profitability and consolidate, unless they adopt highly focused niche advisory models. The paper therefore concludes that urgent regulatory attention and strategic repositioning are necessary to preserve the overall image and international attractiveness of the Swiss private banking ecosystem.

A CONCEPTUAL MODEL OF ADAPTIVE MECHANISMS IN INNOVATION-ORIENTED AGRICULTURAL ENTREPRENEURSHIP

2026-11-06T09:06:04+00:00

The war in Ukraine has presented the agricultural sector with an unprecedented combination of risks, including the loss of production assets, climate volatility, supply chain disruption and institutional instability. In such circumstances, traditional models of entrepreneurial resilience, which are primarily designed for peacetime or isolated natural or economic shocks, lose their adaptive capacity. Meanwhile, there is virtually no comprehensive theoretical synthesis of the mechanisms by which agribusiness adapts to multiple simultaneous threats. This article aims to substantiate a conceptual model of adaptive management mechanisms for innovative agribusiness by integrating the theories of dynamic capabilities and adaptive management with institutional economics. The subject of this study is the processes through which agro-industrial enterprises adapt to conditions of institutional instability and armed conflict. The study is based on the systematic organisation and critical analysis of scientific literature on dynamic capabilities theory, classical adaptive management, and institutional economics. It also draws on a synthesis of empirical studies on agribusiness adaptability under various types of shock. As a result, a four-level conceptual model has been developed. This model sequentially combines an exogenous shock in the form of armed conflict with a reinterpreted triad of dynamic capabilities—sensing, seizing and transforming—for wartime conditions. It also incorporates an institutional moderator and the final outcome of 'bounce forward' adaptive resilience. The practical value of the model lies in its potential use as an analytical tool for assessing the preparedness of agricultural enterprises for multiple crises, developing state policy to support the agricultural sector during wartime and the post-war period, and for formulating enterprise management strategies that take into account the quality of the institutional environment.

AN LLM-BASED FRAMEWORK FOR AUTOMATED RECOGNITION AND STRUCTURING OF CONSTRUCTION COST ESTIMATES

2026-11-02T09:29:20+00:00

The construction industry continues to encounter considerable inefficiencies associated with the manual interpretation and processing of heterogeneous cost estimation documentation, which is characterised by a paucity of background data. The present study puts forward a Large Language Model (LLM)-based framework for the automated recognition, semantic structuring, and enrichment of construction cost estimates originating from unstandardised Excel spreadsheets. The proposed framework uses a combination of domain-specific data annotation, machine learning-assisted document understanding and semantic similarity retrieval to convert semi-structured procurement and estimation documents into standardised, machine-readable datasets. A large corpus of historical construction estimates was collected, organised and manually labelled to create a training dataset for the LLM-based recognition pipeline. An API-oriented architecture automatically parses, classifies and converts uploaded spreadsheets into structured entities, including estimate positions, quantities, units, unit costs and total costs. The framework also incorporates a semantic similarity matching mechanism that compares newly uploaded estimates with historical priced estimates stored in the reference database. Consequently, the system can automatically suggest historically relevant unit prices and related CO₂ indicators for similar construction positions. Experimental validation has demonstrated that the proposed framework achieves a semantic position-matching accuracy of over 85%, enabling the automatic completion of 50–70% of newly uploaded estimates. Furthermore, the solution reduces the effort required for manual estimation by around 70% compared to traditional workflows. The findings suggest that using LLM-assisted recognition and historical knowledge retrieval can substantially improve the productivity, consistency and sustainability of construction cost management and procurement processes.

REFRAMING HOST-COUNTRY ATTRACTIVENESS FOR FOREIGN DIRECT INVESTMENT IN POST-TRANSITION EUROPE: EVIDENCE FROM THE VISEGRAD FOUR COUNTRIES

2026-11-02T09:29:20+00:00

Geopolitical fragmentation, sustainability transitions and digital transformation are increasingly shaping foreign direct investment (FDI). These shifts are not only altering the volume and structure of investment flows, but also the governance frameworks through which states position themselves within global production networks. This article presents a multidimensional framework for analysing host-country attractiveness for FDI in post-transition Europe. Moving beyond traditional economic factors, the framework considers institutional quality, regional integration, geopolitical alignment, environmental, social and governance (ESG) factors, digital infrastructure and sociopolitical legitimacy. The article applies this framework to the Visegrad Four to demonstrate how countries with similar transition legacies and EU membership have diverged in their developmental trajectories and strategic positioning. The analysis reveals the various configurations of institutional credibility, geopolitical alignment and innovation capacity that influence the scale, structure and long-term sustainability of inward foreign direct investment (FDI). By situating FDI attractiveness within broader debates on economic governance and global fragmentation, the article sheds light on how states navigate the trade-offs between integration, sovereignty and development, with implications that extend beyond post-transition Europe.

MULTIPLICATIVE NATURE OF CONTEMPORARY FOOD CRISES: GEOECONOMIC CONFRONTATION AND THE WEAPONISATION OF MARITIME CHOKEPOINTS

2026-11-02T09:29:20+00:00

The paper aims to substantiate the multiplicative nature of contemporary food crises and demonstrate that the weaponisation of maritime chokepoints is the main way this occurs. Departing from the prevailing analytical convention, which examines each global food shock as a discrete episode with its own trigger, transmission channel and policy response, the study argues that the crises of the 2020s are generated multiplicatively. Instead, it argues that the crises of the 2020s are generated multiplicatively; the drivers of food insecurity not only add up, but also reinforce one another through cross-effects, the magnitude of which is determined by the concentration of export supply and the number of logistical bottlenecks simultaneously exposed to military risk. Methodology. The research combines systemic and structural-functional analysis, a comparative case study of three episodes of corridor disruption and a periodisation of global food mega-shocks from 2007 to 2026. It also includes a statistical analysis of the FAO Food Price Index and its commodity sub-indices, as well as the formalisation of driver interaction through additive and multiplicative specifications, complemented by a chokepoint exposure index proposed by the author. The empirical base comprises the Global Report on Food Crises 2026, the World Economic Forum Global Risks Report 2026, publications of FAO, the World Bank, IFPRI, WFP, OECD and CSIS, peer-reviewed literature on food weaponization and wartime grain logistics, and documentary evidence on the July 2026 suspension of shipping in the Ukrainian Black Sea corridor. Results. In all three episodes, the decisive mechanism of trade rupture was not the physical impossibility of passage, but rather the repricing of risk. For example, war-risk insurance premiums in the Black Sea increased fivefold in July 2026, while transit through the Strait of Hormuz decreased by over 70 per cent in the same year. The study identifies the depletion of both reserve capacities of the global fertiliser market, as the 2022 shock disabled the Black Sea capacity and the 2026 shock disabled the Gulf capacity that had previously absorbed it. The wheat rally in July 2026 above 7 USD per bushel, which was a three-year high, was driven by attacks on Ukrainian port infrastructure, fertiliser scarcity, and heat stress in key production regions. This is interpreted as direct empirical confirmation of the generation of multiple crises. Practical implications. As trade disruption occurs through financial rather than physical channels, instruments such as war-risk insurance and state guarantees for shipowners acquire the status of food policy tools. These should be complemented by keeping trade open, targeted transfers instead of universal price subsidies, regional fertiliser reserves and preventive financing calibrated to agricultural calendars. Value / Originality. The paper formally distinguishes between additive and multiplicative crisis generation. It introduces the concepts of dual logistical risk and exhaustion of the world fertiliser market's reserve contours. It also provides the first systematic analysis of the complete suspension of shipping in the Black Sea corridor in July 2026, comparing it with the Hormuz precedent.

CRYPTOASSETS, MONEY LAUNDERING AND CRIMINAL LIABILITY: ECONOMIC AND LEGAL CHALLENGES OF THE DIGITAL FINANCIAL SYSTEM

2026-11-02T09:29:19+00:00

The present article provides a comprehensive economic and legal analysis of the use of cryptoassets in mechanisms for the legalisation (laundering) of proceeds of crime. In addition, it examines the specific features of criminal-law responses to such practices within the digital financial system. The study's relevance is determined by the rapid expansion of the global cryptoasset market, the growth in the volume of illicit cryptocurrency transactions, and the increasing use of stablecoins, P2P and OTC channels, cryptocurrency mixers, and other technologies in schemes designed to transfer and conceal criminal proceeds. It is also determined by the need to adapt national financial monitoring and criminal justice systems to the technological transformation of financial relations. The purpose of the study is fourfold: to identify the economic mechanisms through which cryptoassets are used for money laundering; to assess the applicability of Article 209 of the Criminal Code of Ukraine to digital forms of economic value; to pinpoint the primary challenges of criminal law qualification and evidentiary assessment; and to provide recommendations for enhancing the national economic and legal mechanisms for combating illicit financial flows in the digital environment. The study establishes that, while cryptoassets do not alter the economic essence of money laundering, they do significantly transform the architecture of the financial trail. This is achieved by increasing transactional complexity, fragmenting financial flows, enabling the repeated conversion of digital value and combining decentralised and traditional financial infrastructures. It is argued that the current wording of Article 209 of the Criminal Code of Ukraine is sufficiently technology-neutral to encompass transactions involving cryptoassets. However, the main challenges lie in establishing the link between a digital asset and a predicate criminal offence, identifying the beneficial or actual controller of the asset, proving that the individual is aware of its criminal origin, and ensuring effective procedural control over virtual assets. The study also shows that the FATF's standards and the European Union's regulatory framework provide the conceptual basis for integrating crypto assets into the wider system of risk-based AML/CFT regulation. The study's scientific novelty lies in substantiating an integrated model of economic and legal counteraction to money laundering involving cryptoassets. This model incorporates technology-neutral criminal law, specialised criminal procedural mechanisms for dealing with digital assets, risk-based financial monitoring, blockchain analytics and international co-operation. The findings have the potential to improve law enforcement practice under Article 209 of the Criminal Code of Ukraine by developing procedures for the detection, seizure, custody, valuation and confiscation of cryptoassets. They could also strengthen the analytical capacity of financial intelligence and criminal justice authorities and harmonise national regulation with FATF standards and European Union law.

THE TRANSFORMATION OF THE RELATIONSHIP BETWEEN ECONOMIC WELFARE AND CRIME UNDER THE IMPACT OF WAR: A LEGAL AND ECONOMETRIC ANALYSIS OF PANEL DATA FROM UKRAINIAN REGIONS BEFORE AND DURING THE FULL-SCALE INVASION

2026-11-02T09:29:19+00:00

The full-scale Russian invasion of Ukraine has fundamentally altered the region's socioeconomic conditions, demographic structures and crime patterns, creating new challenges in authors’ understanding of the relationship between economic welfare and crime. While traditional economic theory assumes that improved economic conditions reduce criminal activity by increasing the opportunity cost of offending, wartime conditions can substantially modify these relationships through forced displacement, regional heterogeneity, and institutional disruption. This study examines how the relationship between economic welfare and crime rates in Ukrainian regions changed during the full-scale war, and whether this relationship varies according to regional exposure to military conflict. The study uses a balanced panel dataset covering 25 Ukrainian regions (24 oblasts and the city of Kyiv) from 2018 to 2025. Economic welfare is operationalised using average monthly wages, while crime rates are measured as the number of registered criminal offences per 100,000 people in a given region. The analysis incorporates the proportion of internally displaced persons (IDPs) and distance from the active front line as indicators of the demographic and spatial effects of war. The empirical strategy is based on two-way fixed-effects panel regression models with Driscoll–Kraay standard errors. These were selected following diagnostic testing for cross-sectional dependence, autocorrelation, multicollinearity and model specification. Robustness analyses include alternative functional forms, subsample estimation, sensitivity tests and Granger causality analysis. The results show that the relationship between economic welfare and crime changed significantly following the full-scale invasion. There is no statistically significant direct association between average wages and regional crime rates. However, the interaction between wages and the wartime period is significant, suggesting that war has altered the underlying relationship. The strongest finding is the positive correlation between the proportion of internally displaced people and crime rates, which remains consistent across different models and robustness checks. Furthermore, the impact of economic welfare varies according to regional exposure to war, confirming pronounced spatial heterogeneity. Further analyses indicate that the observed relationships are nonlinear and that registered crime does not provide statistically significant predictive information for macroeconomic forecasting. The present study makes a significant contribution to the extant literature by providing one of the first panel-data assessments of the interaction between economic welfare, forced displacement, wartime spatial heterogeneity, and regional crime in Ukraine. From a methodological perspective, the study highlights the importance of diagnostic-based model selection, demographic controls and spatial measures of war exposure. The findings support the development of evidence-based regional public safety policies and post-war recovery plans.

MIGRATION PROCESSES AND HUMAN CAPITAL MANAGEMENT IN THE CONTEXT OF UKRAINE’S POST-WAR ECONOMIC RECONSTRUCTION

2026-11-02T09:29:18+00:00

The subject of the study is to analyse key trends in global migration processes, including the opportunities available to Ukrainian refugees and their role within these processes. The study will also examine ways to preserve domestic human capital through the development of strategic directions for Ukraine's post-war economic recovery, specifically with regard to migration policy. The study's methodological framework is based on general scientific research methods. The analytical method made it possible to demonstrate the impact of migration on the size, state and quality of domestic human capital. Statistical methods and comparative analysis revealed the nature of migration processes in EU countries and showed how Ukrainian refugees are distributed unevenly across Europe, depending on various factors including minimum wage levels. The synthesis method facilitated the organisation of the research, determined the feasibility of developing a state migration policy strategy and helped to draw conclusions and suggest future research on this topic. The research results revealed the dynamics of migration processes and the influx of new labour into the European labour market. Meanwhile, Ukraine experienced a labour shortage as refugees sought safety during the full-scale war. This necessitates changes to Ukraine's existing migration policy, in order to reflect current realities and encourage Ukrainians to return home to participate in post-war reconstruction. This would be driven by positive shifts across multiple economic sectors, which highlights the practical value of this study. Practical implications. The study's practical significance lies in establishing a scientifically grounded framework for optimising state migration policy and developing effective human capital management strategies amidst global crises. By analysing the specific characteristics of Ukrainian refugees, viable mechanisms can be created to preserve the nation's intellectual and labour potential. This can transform the experience of forced migration into an opportunity to capitalise on new knowledge and skills. The findings of this study are of strategic importance for demographic modelling, labour market forecasting and leveraging the investment and intellectual potential of the diaspora. This is essential for comprehensive post-war reconstruction project planning and execution in Ukraine. Value/Originality. The study provides a comprehensive understanding of migration processes, their current state and development trends. It emphasises the role of migration in shaping human capital amidst contemporary global challenges, as well as the specific characteristics of the domestic labour market. These characteristics create the prerequisites for economic competitiveness, macro-security, a favourable investment climate and the formulation of a state migration policy strategy. This strategy is part of the strategic direction for Ukraine's post-war economic reconstruction.

THE REINTEGRATION OF WAR VETERANS AS A FACTOR IN THE SUSTAINABLE DEVELOPMENT OF RURAL AREAS: ECONOMIC AND LEGAL ASPECTS

2026-11-02T09:29:18+00:00

Given the rapid growth in the number of war veterans in Ukraine, the issue of their reintegration, support in setting up and running businesses, and socialisation is becoming particularly pressing. Given the processes of depopulation and the decline of the rural settlement network, encouraging war veterans to run businesses and live in rural areas could become a promising direction for state policy. The aim of this article is therefore to examine the current economic and legal aspects of the reintegration of war veterans as a factor in the sustainable development of rural areas, to highlight the key shortcomings of existing legislation and to analyse prospective legislation, with a view to formulating proposals for improving the regulation of the relevant legal relationships. The methodological framework of this study was based on the following research methods: philosophical (dialectical), general scientific (formal-logical, systems analysis, and statistical methods of data processing and analysis) and formal-legal methods. The study revealed that the current system of state support for veterans’ entrepreneurship does not take sufficient account of the specific nature of agricultural activity and the needs of veterans seeking to set up their own businesses in rural areas. It has been argued that access to land resources remains a key prerequisite for the establishment of agricultural enterprises; however, the restrictions imposed during the period of martial law on the transfer, free of charge, of state- and municipally-owned land effectively prevent the implementation of the relevant land guarantees for war veterans. This study analyses existing and prospective mechanisms for ensuring that war veterans have access to land, in particular legislative initiatives concerning the setting aside of land, financial compensation and preferential leases of agricultural land. It has been established that such alternative mechanisms require improvement in order to ensure equality for veterans and the practical accessibility of land resources. Particular attention has been paid to state programmes providing housing support for war veterans in rural areas. It has been argued that, due to insufficient funding, the ‘Own House’ programme does not ensure an adequate level of housing affordability, whilst the ‘eOselia’ programme does not include any special incentives for the purchase or construction of housing specifically in rural areas. It has been concluded that there is a need to move away from piecemeal support for individual categories of war veterans towards a comprehensive economic and legal policy for their reintegration into rural communities. Such a policy should combine access to land resources, support for the establishment and development of agricultural enterprises, financial incentives, vocational rehabilitation and special support mechanisms for obtaining or building housing. Implementing the proposed approach will not only help to ensure that the rights of war veterans are upheld more effectively, but will also contribute to the revitalisation of human capital, employment and entrepreneurial activity in rural areas, which is a key prerequisite for their sustainable development.