Baltic Journal of Economic Studies

IMPACT OF CONSUMER BEHAVIOUR FACTORS ON SUSTAINABLE ONLINE PURCHASING DECISIONS

Olga Iurasova — 2026-04-10

The present study explores the growing importance of aligning sustainable sales strategies with consumer purchasing behaviour in the digital marketplace. The objective of the research is to examine consumer behaviour in the context of online shopping, with a view to identifying how sustainability-related and behavioural factors influence purchasing decisions across diverse customer groups. A research gap has been identified in relation to sustainable sales and consumers' purchasing behaviour. The research focuses on consumer behaviour in online shopping. The goal of this study is to explore how different factors impact purchasing decisions in the context of a company’s sustainable development. Methodology. The application of K-Means clustering and regression analysis in this study offers valuable insights into the responses of distinct consumer segments to social, economic, and environmental drivers. This supports companies in achieving sustainable growth. The results obtained demonstrate the variation in consumer behaviour across the various customer groups (i.e., browsers, cart abandoners, buyers, premium shoppers) and illustrate the significance of each factor for each created cluster. The findings of this study indicate that representatives of the Browsers cluster were primarily influenced by social media engagement (+0.42) and advertising interaction (+0.36). Customers in the Cart Abandoners cluster showed discount sensitivity (0.51) and shipping preferences (-0.44). For the Buyers cluster, important factors are brand loyalty (+0.58), customer loyalty programmes (+0.46) and product ratings (+0.31). Premium shoppers have a high income and education level, and value time spent on product research. Practical implications. The study demonstrates that distinct behavioural patterns have a significant impact on the outcomes of consumption. The findings of the research project have the potential to contribute to the development of sustainable online purchasing as a significant component of sustainable development. Value/Originality. The present study draws on consumer behaviour theory in order to investigate the factors that shape online purchasing. It thereby offers original insights into consumer behaviour in the context of sustainable online purchasing decisions, thus contributing to a deeper understanding of how sustainability considerations influence digital consumption patterns.

TRENDS AND DETERMINANTS OF PRIVATE SECTOR PARTICIPATION IN INFRASTRUCTURE DELIVERY IN NIGERIA’S PPI PROJECTS

Samuel Kojo Aidoo — 2026-04-10

This paper examines trends and factors that have influenced private-sector investment in infrastructure projects in Nigeria between 1990 and 2023. Despite growing interest in public–private partnerships (PPPs), private investment remains uneven across sectors such as transport, energy, information and communication technology (ICT), and municipal solid waste. Using project-level data from the World Bank's Private Participation in Infrastructure (PPI) database, the paper applies Ordinary Least Squares (OLS) and Quantile Regressions (QRs) to estimate the reasons behind the current investment level. The results suggest that ICT projects are not receiving significant investment, particularly on a small or medium scale, indicating sector-specific or constrained risks. Conversely, foreign sponsors are associated with higher investment values, though this only becomes apparent in large projects. Quantile regression further highlights the heterogeneous effects across the investment distribution. There are no consistent effects on multilateral support or on the type of project, such as Greenfield projects. These findings emphasise the necessity of targeted policy measures to encourage private investment in the ICT sector, which has historically experienced lower investment levels, and the requirement for more nuanced infrastructure planning approaches that consider project size diversity. The use of bootstrapped quantile regressions also helped to ensure robustness despite the small sample size of the projects. This research will be useful for policymakers, investors, and development financial institutions interested in investing in infrastructure in Nigeria.

ECONOMIC AND LEGAL ASPECTS OF PESTICIDE USE IN UKRAINE IN THE CONTEXT OF EU REQUIREMENTS

Olena Hafurova — 2026-04-10

Current global trends towards greening agricultural production, increased attention to the implementation of eco-friendly practices, and reducing the negative impact of the agricultural sector on the environment pose new challenges for Ukraine. Along with overcoming the consequences of the war, Ukrainian farmers must respond to international requirements for environmentally friendly agricultural practices. This is, first and foremost, a prerequisite for participation in international trade in agricultural products, competitiveness on world markets, compliance with European integration requirements, and the restoration of the agricultural sector in accordance with the principles of sustainable development. Accordingly, one of the important issues is to achieve a reasonable balance between the need to reduce the use of chemicals in production processes, replace hazardous pesticides and agrochemicals with safer alternatives, and the need to reduce production costs. In view of the above, research into the economic and legal aspects of pesticide use in Ukraine in the context of EU requirements is particularly relevant, which is the purpose of this scientific article. The use of such scientific methods as philosophical (dialectical), general scientific (formal-logical and analytical) and special legal (comparative-legal and formal-legal) methods contributed to the solution of the research tasks. The statistical method of data processing and analysis was also used in the work. The study found that the absence of a ban on the use of neonicotinoid insecticides, which are particularly harmful to pollinating insects, in Ukrainian legislation is leading to an increase in their use, which is inconsistent with the position of the European Union, where such use is prohibited. At the same time, attention is focused on the economic risks for small agricultural producers in cases where a similar ban is imposed. It is noted that, given the difficult economic situation caused by the full-scale war, compliance with the requirements established by the EU in this area is practically impossible. It has been established that, despite significant risks to the environment and human health, Ukrainian legislation allows the use of pesticides by aerial spraying. The main shortcomings of the prospective legislation prohibiting this method of pesticide application and its non-compliance with EU legislation requirements have been identified (in particular, the establishment of an exhaustive list of cases for obtaining permits for aerial spraying of pesticides; reduction of the notification period for the start of such work). An economic and legal assessment of the prospects for using unmanned aerial vehicles to apply plant protection products in Ukraine and the EU has been carried out. The conclusions reached may form the basis for further economic and legal research in the field of plant protection product management.

MONOPOLIZATION OF THE INFORMATION MARKET BY DIGITAL PLATFORMS: LEGAL AND ECONOMIC IMPLICATIONS FOR MEDIA PLURALISM

Andrii Borovyk — 2026-04-10

This article examines the legal and economic implications of the monopolization of the information market by digital platforms for the protection of media pluralism. In the contemporary digital environment, global technology companies increasingly act as key intermediaries between producers of informational content, audiences, and advertisers. This transformation of the media market is accompanied by the concentration of advertising revenues, the strengthening of algorithmic control over the distribution of information, and the emergence of new forms of economic dependence of journalism on platform infrastructures. The purpose of this article is to provide a comprehensive analysis of the impact of the economic dominance of digital platforms on media pluralism and to identify legal mechanisms capable of ensuring the balanced development of media systems in the context of digital transformation. The research employs an interdisciplinary approach that combines methods of legal analysis, media economics, and contemporary media studies. The study explores theoretical approaches to understanding media pluralism as a key prerequisite for a democratic information environment. Particular attention is paid to the transformation of classical concepts of pluralism in the context of the platformization of media, characterized by the growing role of digital platforms in shaping information flows and redistributing advertising resources. The article analyses the economic mechanisms of platform markets, including the two-sided model of interaction between audiences and advertisers, which contributes to the concentration of market power in the hands of the largest technology companies. A separate part of the study focuses on the analysis of algorithmic governance of information flows and its impact on the accessibility of journalistic content. It is demonstrated that algorithmic systems of recommendation and moderation effectively perform a gatekeeping function, determining the visibility of media content within the digital environment. The article also examines contemporary legal mechanisms for regulating the activities of digital platforms. In particular, it analyses the regulatory framework of the European Union, including the Digital Services Act, the Digital Markets Act, and the European Media Freedom Act, which collectively shape a new model for regulating the digital information space. The prospects for adapting these approaches within the national legislation of Ukraine are also considered. The study concludes that safeguarding media pluralism in the context of the growing dominance of digital platforms requires a comprehensive approach that combines instruments of competition law, media regulation, and economic support for journalism. An important direction for further development lies in the harmonization of national policies with European standards for regulating digital platforms and in the creation of sustainable economic models for the functioning of media systems.

ARMED AGGRESSION AND SANCTIONS POLICY IN THE GLOBAL SECURITY SYSTEM: LEGAL FRAMEWORKS, ECONOMIC IMPLICATIONS, AND DETERRENCE MECHANISMS

Oksana Voloshchuk — 2026-04-10

The article examines the key dimensions of contemporary global security in the context of armed aggression, focusing on the economic, legal, informational, and cyber components of hybrid influence. The study's pertinence is rooted in the escalating prevalence of novel conflicts and their progressively intricate and multifaceted ramifications on the international system, encompassing disruptions to global trade, financial stability, and governance structures. The objective of the research is to ascertain the structural patterns that underpin deterrence mechanisms based on economic sanctions, international legal instruments, and crisis management strategies, thereby providing a comprehensive framework for understanding how states and international organisations can respond effectively to modern security challenges. The methodological framework utilised encompasses the structural-functional approach, comparative legal analysis, systematisation of economic effects, and modelling of potential implications for the victim state and the global market. The study demonstrates that sanctions reshape financial stability and market access for aggressor states, alter technological dynamics and investment behaviour, and can generate long-term systemic pressure. Concurrently, the research identifies concomitant side effects such as supply chain disruptions, price volatility, and heightened global economic uncertainty. The practical value of the study lies in its ability to provide comprehensive recommendations that are designed to enhance the effectiveness of sanction regimes, strengthen international coordination, mitigate risks for the victim state's economy, and integrate crisis management components into response mechanisms. In conclusion, the development of a multi-level, adaptive, and legally balanced deterrence system contributes to maintaining international security and protecting state sovereignty in the modern security environment.

COMPETITIVENESS OF UKRAINIAN AGRICULTURAL EXPORTS AND ENVIRONMENTAL EXTERNALITIES

Andrii Hadzalo — 2026-04-10

Agricultural exports plays a pivotal role in shaping Ukraine’s foreign trade specialization; however, the predominance of primary commodities intensifies challenges related to long-term competitiveness and environmental sustainability in conditions of European integration. The strengthening of environmental requirements within the EU Common Agricultural Policy necessitates a reassessment of the structural characteristics of Ukraine’s agricultural exports with explicit consideration of environmental externalities. The purpose of this study is to evaluate the competitive position of Ukraine’s agricultural sector using the revealed comparative advantage (RCA) index and the product complexity index (PCI), interpreting the results through the lens of economic externality theory. The object of the research is the structure of Ukraine’s agricultural exports, while the subject is the relationship between comparative advantages, product complexity, and environmental external effects. The methodological framework integrates international trade analysis tools with concepts from institutional and environmental economics. The empirical basis of the study is formed by international trade statistics for 2023. The research employs index analysis, comparative statistical methods, and theoretical interpretation of the obtained results. The findings indicate that Ukraine’s highest revealed comparative advantage (RCA) values are concentrated in product groups with low product complexity index (PCI) scores, reflecting the predominance of a resource-oriented model of export competitiveness. Although this model supports short-term export performance, it is associated with the accumulation of negative environmental externalities that remain largely non-internalized within the existing institutional framework. The scientific novelty of the study lies in the integrated application of RCA and PCI indicators in conjunction with externality theory to assess the sustainability of agricultural competitiveness in the context of Ukraine’s European integration. The practical significance of the results consists in substantiating policy recommendations aimed at developing financial and economic support mechanisms to stimulate higher value-added agricultural production and to mitigate the adverse effects of intensive natural resource use.

THE COMPREHENSIVE NATURE OF TAXATION RELATIONS

Oksana Hinda — 2026-04-10

Tax legal relations constitute a specific and highly structured category of social relations, characterised by the fact that they can only emerge in legal form. The complex social, economic, technological and geopolitical circumstances that influence modern taxation processes in Ukraine necessitate a thorough examination of their legal nature. This article explores the essence, structure and composition of the subjects of tax legal relations, focusing on the mechanisms through which taxes acquire their legal status. A tax obligation arises only once a tax has been legislatively established and properly introduced. This creates a clear distinction between the establishment of a tax (its definition within the Tax Code of Ukraine) and its introduction (when the taxpayer becomes legally bound to fulfil the corresponding obligations). The study emphasises that contemporary tax relations cannot be adequately understood without considering three key factors: the impact of the war with Russia on both taxpayers and the subjects of taxation; the rapid digitalisation of public administration, which increases transparency significantly and reduces the risk of corruption; and Ukraine’s steady progress towards European integration, which is shaping the modernisation of tax legislation. This text focuses on the structural components of tax legal relations, namely their object, subjects, and content. The article demonstrates the necessity of distinguishing between the object of taxation and the object of the legal relation, as well as between subjects of tax law (potential participants) and subjects of tax legal relations (actual participants). The inherent inequality between authoritative and obligated subjects is shown to be an objective feature of public-law relations. The research under discussion highlights the dynamic character of tax legal relations and the growing importance of their coherent legal regulation in ensuring the financial stability and institutional capacity of the Ukrainian state.

ORGANISATIONAL FORMS OF DEVELOPMENT OF INTERNATIONAL ECONOMIC CO-OPERATION OF MACHINE-BUILDING ENTERPRISES

Alla Dunska — 2026-04-10

The purpose of the article is to develop a scheme for the operation of an export-oriented cluster of machine-building enterprises based on innovative development. The scheme includes specific, practical recommendations for the involvement of scientific and educational institutions, as well as various satellite enterprises, according to the development needs of different groups of enterprises. Methodology. This study builds on previous research concerning export-oriented development, innovation-driven growth, and foreign economic strategies. Scientific research on existing approaches to understanding various integration structures and the legislative acts that regulate them revealed the main differences among these structures. One important difference is the focus on various programs within the framework of the country's innovation policy and support for different types of projects. This research also identified the advantages and disadvantages of these projects for various enterprises in Ukraine's machine-building industry. The main content of the proposed methodology is the justification of a scheme for a cluster structure of interactions between machine-building enterprises. Results. The proposal entails the establishment of a system of clusters of machine-building enterprises, predicated on the principles of innovative activity. This system will involve research institutions and vocational education institutions. The formation of this system will allow for the strengthening of the value-added chain in terms of increasing labour productivity and attracting more qualified employees. It will also allow for the attraction of innovations that are needed "here and now", while using fewer financial resources. In accordance with the principles of management and the stages of formation proposed by the authors, a scheme has been formed for the functioning of an export-oriented cluster of machine-building enterprises based on innovative development. This scheme includes not only the core of the cluster—the main enterprises that manufacture machine-building products and the scientific institutions that ensure the innovativeness of the development vector—but also various satellite enterprises, financial institutions, and internal consumers of products and services. These entities operate under the given conditions of market development, influenced by state and regional authorities, as well as factors of the external environment of the domestic and international markets. Practical implications. Practical recommendations have been developed for forming a system of export-oriented clusters with an innovation bias for the studied groups of enterprises. This is reflected in the general scheme of cluster functioning and interaction among the various entities proposed to be involved in organizing and managing the cluster. This is in accordance with the proposed principles and the concept of interaction between the studied enterprises forming the basis of the cluster and the relevant scientific and educational institutions. The goal is to activate innovative activities and increase labour efficiency. Value / Originality. The methodological approach developed for the formation of a system of export-oriented clusters serves as the foundation for management decisions and the formulation of export strategies for machine-building enterprises within the context of developing an export-oriented model of the economy.

ENSURING THE ECONOMIC SECURITY OF UKRAINE AS A COMPONENT OF THE CUSTOMS COMPETENCES OF A CUSTOMS AUTHORITY OFFICIAL

Tamara Latkovska — 2026-04-10

The article addresses the issue of whether ensuring the economic security of Ukraine should be considered the responsibility of a customs authority official. The purpose of this study is to analyse the current state of the competences of a customs authority official. To this end, the following three steps are proposed: a) the praxeological dimension is to be identified; b) the subject-content dimension is to be distinguished and analysed; c) the ensuring of the economic security of Ukraine is to be substantiated as one of the key competences of a customs authority official. The methodology of the study incorporates a variety of approaches, including general and special methods of scientific cognition, the method of systems analysis, the dialectical method, formallogical methods, and the structural-functional method, in addition to a range of empirical methods. The results obtained from this study support the advancement of the thesis that the concept of "customs competences", in contrast to the concept of 'competence of customs authorities' (which has legal significance), is an applied concept and represents a set of specific characteristics (knowledge, skills, abilities, motives, and values). The exhaustive list of these characteristics is provided by customs legislation. It is clear that defining the notion of "customs competences' in terms of 'professional competence" is a breach of legal drafting techniques, given that the latter is substantially broader and more comprehensive in terms of content and essence. The State Customs Service of Ukraine is proposing the adoption of the following: a) training programmes for customs authority officials with a focus on ensuring economic security; and b) advanced training programmes aimed at updating knowledge related to ensuring economic security.

DETECTION OF ILLICIT CAPITAL THROUGH THE FORENSIC METHODOLOGY OF CRIMINAL CORRUPTION INVESTIGATION

Oleksii Makarenkov — 2026-04-10

The article examines the forensic methodology for identifying the capital derived from corruption-related crimes. It is noted that the essence of the methodology lies in a system of methods for recognizing reliable traces, collecting, examining, documenting, and preserving evidence of the existence of such assets in both the material and cybernetic spheres. It is established that the “methodology for identifying corruption assets” is defined through the algorithms of forensic experts and investigators with data regarding such assets, their owners, the mechanisms of their acquisition, storage, multiplication, and laundering, the results of which are transformed into evidence. This methodology intersects with the “methodology of investigating money laundering offences.” It is emphasized that the personality of the corrupt actor and his accomplices is characterized by social alienation. Corrupt actors maintain special relationships with financiers (bankers, investors, insurers, brokers) and businesspersons, as well as with accountants and programmers. Taken together, analysis of these connections enables investigators to determine the places, methods, scale, and composition of misappropriated public funds, the results of their laundering and multiplication, and to identify appropriate mechanisms for their seizure and return. It is underscored that the documentation of procedural actions is accompanied by protocols (interrogations, inspections, expert examinations, audio, photo, and video recordings, etc.), inventory lists, and other annexes to the protocols of thorough searches, expert reports, procedural documents, and other materials required under criminal procedure law. A certain part of the evidentiary base for identifying and/or recovering corruption assets consists of contracts, certificates of completed work, memoranda, reports, and other officially prepared documents drafted by specialists in all jurisdictions and fields where such assets are located. The study of these documents is necessary to overcome the obfuscation created by corrupt actors. It is determined that corruption assets in cyberspace require verification of cryptocurrency wallets and electronic addresses belonging to the corrupt actor. Assets located outside the national jurisdiction in which they were obtained have a relatively high probability of being identified and/or returned only in countries intolerant of illicit proceeds and largely free from internal corruption. The article concludes that the practical measures of criminal justice authorities to identify illicit proceeds in the form of digital currencies and to trace their laundering through such currencies depend on legislative norms regulating the activities of cryptocurrency exchanges, which act as intermediaries in transactions with these assets. Financial monitoring by exchanges of the legality of the sources of funds used by participants in transactions on electronic platforms, as well as the blocking of assets belonging to corrupt actors, terrorists, war sponsors, money launderers, and other criminals, is essential. To date, the primary model for implementing such regulation remains that of the United States. It is summarized that the labor intensity, complexity, and duration of criminal procedural actions aimed at identifying corruption assets, combined with uncertainty regarding the timing of their return, underscore the importance of recording corruption assets - with varying degrees of verification, composition, nominal value, location, stage of return, and corresponding procedural documents of justice authorities - in a specialized register or in new sections of existing anti-corruption registers.

THE PRINCIPLE OF COMPLEMENTARITY BETWEEN INTERNATIONAL AND DOMESTIC JURISDICTIONS IN THE PROSECUTION OF WAR CRIMES

Oleg Tatarov — 2026-04-10

The article reconstructs the legal architecture of complementarity under the Rome Statute and articulates the ICC’s admissibility tests: unwillingness (shielding, unwarranted delay, lack of independence/impartiality), inability (total or substantial collapse/ unavailability of the national system), gravity, and the “same person/same conduct” standard. Drawing on Ongwen, Ruto and the Libya decisions (Saif Al-Islam Gaddafi; Al-Senussi), it distils how the Court distinguishes declaratory reforms from genuine investigative and prosecutorial action, assesses the availability of the accused, and evaluates a state’s capacity to secure a fair trial. A comparative institutional section demonstrates models from Nuremberg/Tokyo (exclusive jurisdiction over “major war criminals”), through ICTY/ICTR (tribunal primacy over national courts), to hybrid tribunals (SCSL, ECCC, Kosovo SC), situating the ICC’s contemporary role as complementing—rather than replacing—domestic justice. Focusing on Ukraine’s wartime context, the paper identifies admissibility risks (in absentia trials, use of pre-trial statements, special evidentiary rules) and proposes safeguards that demonstrate the genuineness and capacity of domestic proceedings (comprehensive audio-video recording, effective defence and cross-examination, reasoned judgments and proportionality of sanctions). It develops a practical algorithm for delineating jurisdictions and distributing criminal proceedings among national courts, the ICC, and possible hybrid mechanisms, taking into account the preconditions and triggers of jurisdiction, the admissibility tests (Article 17 of the Rome Statute), the “same person/same conduct” standard, and the “gravity” criterion. A roadmap for positive (proactive) complementarity is offered for Ukraine—capacity-building, harmonised evidence standards, structured cooperation with the ICC Office of the Prosecutor, and duplication-minimising protocols. The contribution lies in integrating the ICC’s admissibility doctrine with wartime procedural realities, clarifying terminology (primacy vs. “parallelism”), and introducing operational metrics of genuineness/capacity for oversight. The practical significance consists in developing policy tools for the prosecution of war crimes that are compatible with complementarity and fair-trial guarantees.

DIAGNOSIS OF THE STATE OF INNOVATION SUPPORT FOR THE SUSTAINABLE DEVELOPMENT OF THE AGRICULTURAL SECTOR

Inna Tomashuk — 2026-04-10

The purpose of the study is to carry out a comprehensive diagnosis of the state of innovation support for the sustainable development of the agricultural sector in order to identify its level of formation, key trends, problematic aspects and constraining factors, as well as to substantiate directions for improving innovation development mechanisms in the context of ensuring economic efficiency, environmental balance and social resilience of the agricultural sphere. Methodology. The methodological framework of the study is based on a combination of general scientific and specialised research methods. Analysis and synthesis were employed for the conceptual examination of innovation support and sustainable development of the agricultural sector. The formation of theoretical propositions, conclusions and recommendations was carried out using the abstract-logical approach. The systems analysis method enabled the consideration of innovation support in the agricultural sector as a complex socio-economic system. The dynamics of innovation activity and the volume of financing for research and development were assessed using economic and statistical as well as index-based methods. SWOT and PEST analyses were applied to identify internal and external influencing factors. The generalisation and presentation of the research results were ensured through the use of graphical and tabular methods. Results. The results indicate that innovation support for the sustainable development of the agricultural sector in Ukraine has significant but insufficiently realised potential. It is revealed that the efficiency of agricultural production increases with the implementation of technological, digital and organisational innovations, the development of cooperation between enterprises, and the integration of science, education and business. Important factors include adaptation to climate change, the development of organic production, and the introduction of resource-saving technologies. At the same time, the agricultural sector faces problems of insufficient innovation financing, limited institutional support, a low level of innovation activity among enterprises, and regional development imbalances. Prospects for improvement include the development of public–private partnerships, modernisation of the technological base, improvement of infrastructure, support for organic production, and enhancement of product competitiveness in domestic and international markets. Practical implications. Diagnosing the state of innovation support for the sustainable development of the agricultural sector contributes to the formulation of well-grounded managerial decisions regarding the development of innovation activity at national and regional levels. Identifying the strengths and weaknesses of the innovation system enables the targeted implementation of technological and digital innovations, increasing agricultural productivity and resource-use efficiency. An increase in the competitiveness of agricultural enterprises in domestic and foreign markets is expected due to the greening of production, improved product quality and compliance with international standards. An important practical outcome is also the strengthening of state support for innovation, the development of innovation infrastructure, and the creation of favourable conditions for the implementation of green and digital solutions in the agricultural sector. Value/originality. The study provides a comprehensive understanding of the state and development trends of innovation support in the agricultural sector under conditions of environmental and socio-economic transformations, which is essential for shaping evidence-based national and regional agricultural policies. It emphasises the role of technological and digital innovations, human capital development, and interaction between science, education and agribusiness, creating prerequisites for enhancing production efficiency, environmental safety and the long-term competitiveness of the agricultural sector.

THE NORDIC MODEL OF SUSTAINABLE VALUE CREATION: ESG, PUBLIC-PRIVATE COLLABORATION, AND MARKET PERFORMANCE ON THE PATH TO CARBON NEUTRALITY

Olga Tsapko-Piddubna — 2026-04-10

Nordic economies rank among the global leaders in sustainability and climate policy, yet the extent to which corporate ESG (environmental, social, and governance) performance and carbon efficiency translate into market value remains insufficiently understood. This paper analyses how large, listed firms in Denmark, Finland, Norway, Sweden, and Iceland create sustainable value under mature disclosure frameworks and dense public–private collaboration. The study investigates the relationship between ESG scores, carbon efficiency indicators, and financial characteristics for 82 firms observed between 2021 and 2024. Cross-sectional and pooled Pearson correlations, complemented by two-sample t-tests, link revenues per tonne of CO₂, EVIC (enterprise value including cash) per tonne of CO₂, GHG emissions intensity, and the presence of carbon reduction targets to market capitalisation, assets, leverage, profitability, and capital expenditures. The results show that conventional ESG scores have no meaningful association with firm value or profitability, whereas carbon efficiency indicators exhibit strong and consistent financial linkages. EVIC per tonne of CO₂ is highly correlated with market capitalisation, assets, and especially total debt (r ≈ 0.90), indicating that the most carbon-efficient firms are also the largest and most capital-intensive. Revenues per tonne of CO₂ show moderate but significant correlations with these size variables (r ≈ 0.54–0.55). Firms with carbon reduction targets display nearly four times higher market capitalisation and substantially greater EBITDA and CAPEX, confirming that climate commitments are concentrated among financially stronger companies. Cluster analysis reinforces these patterns: seven independent NbClust criteria identify two clusters, with nearly all firms grouped into a single dominant cluster—evidence of a highly homogeneous regional sustainability–financial structure. Only a small set of outliers diverge meaningfully from this Nordic profile. Sectoral asymmetries remain pronounced: financial, technology, and consumer-oriented firms translate sustainability performance into valuation gains far more effectively than industrial and resource-intensive sectors, where technological and operational constraints limit near-term improvements. Overall, the findings indicate that sustainable value creation in the Nordic region is driven primarily by carbon efficiency, firm scale, and institutional capacity, underscoring the importance of targeted industrial policies and innovation programmes in helping heavy industries close the carbon efficiency gap.

AI-DRIVEN BUSINESS INNOVATIONS AS A TOOL FOR ECONOMIC STABILITY AND DEVELOPMENT OF UKRAINE

Oleksandr Cherep — 2026-04-10

This article examines the economic efficiency of AI-driven business innovations in combatting disinformation, which are key to ensuring Ukraine’s economic stability during wartime and post-war recovery. The study focuses on the implementation of AI in systems designed to counter information threats, while examining the economic costs and effectiveness of using intelligent technologies for information security, digital resilience, and business development. The analysis shows that disinformation poses significant risks to the state and business sector, influencing investment decisions, undermining business competitiveness and causing market instability. The study aims to analyse the role of artificial intelligence-based business innovations in ensuring Ukraine’s economic stability, assess their potential for innovation in post-war recovery processes, and identify key areas for developing AI technologies in a business context. The research tasks include assessing the impact of disinformation on businesses and the economy, substantiating the use of AI as an innovative tool for minimising information risks, developing an algorithm for evaluating the performance of AI systems (RAI – Real AI Impact), analysing the economic feasibility of AI investments using the benefit-cost ratio model, determining the potential of AI to drive business innovation, and identifying areas for the development of intelligent business technologies. The study emphasises that the use of AI strengthens not only information security, but also creates new business models, innovative services and digital products that provide Ukrainian enterprises with a competitive advantage. It proposes an algorithm for assessing the performance of AI systems based on the RAI indicator, as well as a model for justifying AI investments economically. This enables both businesses and public institutions to evaluate the benefits resulting from reduced disinformation risks. The modelling results show that potential economic losses from disinformation can be reduced by 81% with an AI system accuracy of 90%. A BCR value exceeding 1 indicates the economic viability of implementing AI as an innovative business solution. The study's scientific novelty lies in its combination of technological and economic approaches to evaluate the role of AI as a business innovation that enhances information resilience and supports enterprises' digital transformation. Its practical significance lies in its potential to inform the development of innovative business strategies, the creation of digital products, and the enhancement of business competitiveness, while optimising resources and supporting strategic planning under constraints. The proposed approaches will strengthen Ukraine’s economic stability and accelerate its post-war recovery by developing innovative, AI-based business solutions.

SELF-REGULATORY ORGANISATIONS AS MARKET REGULATORS WITH DELEGATED POWERS: COMPARATIVE ANALYSIS OF THE LEGISLATIVE FRAMEWORK

Mykhailo Shevchenko — 2026-04-10

The purpose of this article is to identify exemplary and suboptimal approaches of certain countries to determination of the scope of public powers delegated to self-regulatory organisations as well as of means designed for ensuring efficient execution of these delegated powers in accordance with the norms of administrative law. Relying on comparative and systematic review methods, as well as on techniques of text analysis, the main legal contours of the model of self-regulation regulation of economic activities in particular areas (securities market, advertising and anti-money laundering), established by the legislation of certain countries (Germany, Ontario, the United Kingdom, the USA and Switzerland), are outlined. The authors conclude that self-regulatory organizations may be entrusted with the following delegated powers: (1) to register business entities or issue them permits, including after verifying their compliance with the eligibility criteria stipulated by regulatory legal acts (United Kingdom, USA, Switzerland); (2) to develop binding rules (standards) for the respective type of economic activity (USA, United Kingdom, Ontario, Switzerland); (3) to submit mandatory requests for the provision of information that is necessary for a self-regulatory organization to perform its functions (Lithuania); (4) impose liability measures on business entities that are members of a self-regulatory organization (United Kingdom, USA, Switzerland). Government control (supervision) over activities of self-regulatory organizations is carried out through: (a) approval/approval by regulatory authorities of the constituent documents of self-regulatory organizations, rules and standards for the activities of self-regulatory organizations, initiation of amendments to them, independent decision-making on this matter after consultation with the self-regulatory organization; (b) participation in meetings of executive bodies and disciplinary bodies of the self-regulatory organization on issues of its exercise of its delegated powers; (c) review by regulatory authorities of regulatory acts of self-regulatory organizations and/or their decisions on imposition of liability measures on business entities; (d) sanctioning self-regulatory organizations for violations of legislative requirements (including in connection with the systematic failure to ensure complianc by their members) or due to their failure to meet the performance indicators of their activities.

INTERNATIONAL LEGAL FRAMEWORK FOR SOIL PROTECTION: NORMATIVE GAPS AND ECONOMIC IMPLICATIONS

Liudmyla Golovko — 2026-05-04

Protecting soils from degradation is a significant area of research in international environmental law. Almost all states face soil degradation problems and are striving to solve them at a national level. The quality of soils is decreasing worldwide, which affects states' ability to ensure food security and protect biodiversity. The different approaches adopted by various states to this problem result in insufficient legal regulation of soil protection at a national level. It is therefore imperative that effective international legal regulation of soil protection and international co-operation in this sphere be established. The purpose of this article is twofold: firstly, to analyse the international legal regulation of soil protection, and secondly, to identify existing problems and propose solutions. An analysis was conducted of statistical data pertaining to the deterioration of soils, in addition to the economic consequences thereof. Methodology. General theoretical methods were mainly used when writing the article. The sufficiency of international legal regulation of the protection of soils from deterioration was assessed using analysis and synthesis, theoretical generalisation and systematic interpretation. Results. The article examined the content of the UN Convention to Combat Desertification, the FAO's Voluntary Guidelines for Sustainable Soil Management and national strategies aimed at combating desertification and protecting soils, identifying their shortcomings. Practical implications. Drawing on doctrinal principles and the provisions of current international law, the authors have identified the main challenges facing the international legal framework for the protection of soils against degradation and have proposed possible solutions. Value/Originality. It has been determined that a significant step in enhancing the international legal regulation of soil protection is the adoption of international standards for climate-resilient agricultural practices and soil protection.

ECONOMIC SECURITY OF THE INDIVIDUAL AS A COMPONENT OF THE FIFTH GENERATION HUMAN RIGHTS CONCEPT

Ivan Shved — 2026-05-04

The contemporary world is characterised by an escalation in military conflicts and political and economic instability, which have a substantial impact on the economic security of the individual. The ongoing war in Ukraine and the escalation in Israel, in conjunction with the crises in Venezuela, Africa and Southeast Asia, illustrate how military actions, political upheavals and economic sanctions can compromise the stability of a nation's economy, impacting the employment prospects of its population and, consequently, access to fundamental services. In such conditions, economic security becomes an issue not only on a national scale, but also acquires a global and human rights dimension. Within the conceptual framework of fifth-generation human rights, economic security emerges as a pivotal element that integrates material living conditions with emergent collective and digital rights. Consequently, its provision becomes a prerequisite for the realisation of dignity, opportunities and the sustainable development of the individual, particularly in contexts characterised by military threats, conflicts and technological transformations. It is evident that human economic security is not merely a component of national security; rather, it constitutes the foundation of the modern human rights system. Consequently, the study of economic security as a component of the fifth-generation human rights concept has increased in relevance. The purpose of the present study is twofold: firstly, to provide a robust theoretical foundation for the notion of economic security as a fundamental component of the fifth-generation human rights concept; and secondly, to offer a comprehensive analysis of its current status within the contemporary human rights and security paradigms. The research methodology under scrutiny comprises a range of approaches, including the dialectical method, the system-structural method, the comparative law method, and the analysis and synthesis method. The study concluded that economic security constitutes an integral component of the fifth-generation human rights concept. The transformation of the legal and socio-economic dimensions of human security in conditions of modern conflicts and crises was analysed on the theoretical basis of definitions and mechanisms for ensuring economic security. By combining the five generations of human rights with the concepts of human and economic security, it can be concluded that economic security encompasses more than just income and employment protection. It also includes access to resources and the sustainability of life systems, as well as the digital and collective dimensions of rights that are characteristic of the fifth generation. The mechanisms of destruction of individual economic security, as exemplified by wars and conflicts (e.g., loss of livelihoods, high inflation, disruption of supply chains, destruction of infrastructure and digital threats), are analysed. General directions for integrating economic security guarantees into international legal and national mechanisms for the protection of fifth generation rights are then proposed.

NAVIGATING EXTERNAL SHOCKS: THE ROLE OF IFRS COMPLIANCE IN UKRAINIAN COMPANIES DURING WAR

Ruslana Kuzina — 2026-05-04

The objective of this study is to examine the profitability and resilience of Ukrainian firms that adopt International Financial Reporting Standards (IFRS) in a context of war-induced uncertainty. The present study focuses on the role of governance mechanisms, particularly the quality of audits and operational continuity, in determining financial outcomes at the firm level. Methodology. A difference-in-differences (DiD) approach is employed, utilising firm-level data and two regression models: a baseline model capturing treatment and time effects, and a triple interaction model incorporating audit quality and operational resilience. The financial data are sourced from ORBIS, and the exposure to regional conflict is determined using humanitarian reports. Results. The baseline regression analysis demonstrates that external shocks, such as exposure to war, do not affect profitability uniformly. However, the triple interaction model posits that firms with high audit quality, which are often audited by Big-4 firms, encounter heightened financial strain during periods of conflict due to more stringent compliance requirements. Concurrently, the investigation revealed that operational continuity significantly enhanced profitability, thereby demonstrating that resilience capacity is a pivotal differentiator during crises. Practical implications. The findings emphasise the necessity for Ukrainian firms and regulators to achieve a balance between transparency and flexibility in their governance practices. In order to ensure the maintenance of economic functionality in high-risk settings, it is imperative that support for operational resilience is prioritised. These insights can be used by international donors and policymakers to tailor financial support mechanisms and reporting requirements in war-affected economies. Value/Originality. This paper is among the first to quantify the combined effects of governance quality and resilience on firm profitability during wartime using International Financial Reporting Standards (IFRS)-compliant data. This study makes a significant contribution to the expanding corpus of literature addressing financial reporting, audit assurance and corporate survival in contexts of fragile geopolitics. It is recommended that future research explore additional dimensions, such as innovation capacity and the regulatory environment, with a view to deepening the understanding of firms' adaptation strategies during crises.

THE ENERGY CRISIS AS A FACTOR IN THE TRANSFORMATION OF ECONOMIC SECURITY IN MODERN UKRAINE

Vladyslav Pustovar — 2026-05-04

In the context of full-scale war, the energy crisis has become one of the key factors in the transformation of Ukraine's economic security, directly affecting macroeconomic and social stability and the state's institutional capacity. The destruction of energy infrastructure, systemic supply disruptions and rising energy costs have created complex risks that extend beyond the energy sector and have become systemic. Therefore, this study is relevant because it aims to understand the energy crisis as a structural factor of economic security rather than a temporary shock. This article aims to provide a comprehensive political and economic analysis of the impact of the energy crisis on economic security transformation in modern Ukraine. The study focuses on the structural, macroeconomic, socio-economic and institutional-political consequences of energy instability in times of war and prolonged uncertainty. The study's methodology is based on political-economic, systemic and structural-functional approaches, enabling economic and energy security to be considered interrelated elements of national security. Methods of analysis and synthesis, comparison, generalisation and logical modelling were employed to trace the relationship between energy constraints, macroeconomic dynamics and changes in economic behaviour patterns. The study found that the energy crisis reduces economic security by decreasing production volumes, increasing inflationary pressure and the budget deficit, and worsening conditions for human capital reproduction. The mass transition of businesses and households to autonomous energy sources, such as generators, ensured minimal operational stability of the economy. However, it also created long-term risks of economic fragmentation and the consolidation of a crisis-based development model. Thus, the energy crisis is viewed as a catalyst for change in state economic policy, institutional priorities and economic behaviour models. The results obtained have practical value in that they can be used to develop strategies to enhance Ukraine's economic security. This can be achieved by strengthening the institutional management of the energy sector, combining anti-crisis and long-term measures, and transitioning to a sustainable model of economic development in conditions of prolonged instability.

LEGAL AND ECONOMIC COMPONENTS OF PROTECTION OF REAL ESTATE OF EDUCATIONAL INSTITUTIONS AT THE REGIONAL LEVEL IN CONDITIONS OF MARTIAL LAW

Yuriy Pylypenko — 2026-05-04

The article elucidates the status and prospects of protecting real estate of educational institutions at the regional level under martial law. The article provides a comprehensive definition of the legal mechanisms for establishing a system for protecting the real estate of educational institutions at the regional level under martial law. It also elucidates the fundamental principles and components of the economic aspect of establishing such a system. Furthermore, it explores avenues for enhancing the administration and financing of educational institutions at the regional level under martial law. The legal mechanisms for protecting real estate of educational institutions under martial law are based on the norms of civil defence, safety of the educational environment and management of communal property; the key ones are: 1) taking a set of security measures (safe educational environment project); 2) providing real estate of educational institutions with a system of protective structures (shelters) in accordance with the requirements of the Code of Civil Protection of Ukraine; 3) management of municipal property through rational use, lease or re-profiling of property (including non-working institutions) in accordance with the decisions of local councils and executive committees; 4) recording damage to premises and territory of educational institutions for future compensation (drawing up inspection reports); 5) attracting extra-budgetary funds for the restoration of damaged buildings and infrastructure of educational institutions, which is regulated by special orders; 6) proper organisation of communication between the administration of the educational institution and local self-government bodies regarding ensuring the safety of educational institutions (Article 80 of the Law of Ukraine "On Education"). The economic component of protecting the property of educational institutions is highlighted, which constitutes a system of financial and economic measures aimed at preventing losses, modernising the infrastructure and optimising costs for maintaining municipal property of educational institutions; its main components are given: 1) cost optimisation (budgeting) – formation of the expenditure part of local budgets for operational financing of security units (security, video surveillance systems, fire safety); 2) property management – rational use, inventory, rental or transfer of unused premises by educational institutions to obtain additional revenues directed to the protection of facilities; 3) investment component – attraction of extrabudgetary funds, grants, assistance from local producers and volunteers to arrange safe conditions (shelter, fences); 4) legal and economic protection – creation of legal foundations for responsible storage of property on the balance sheet of institutions (operational management law); 5) financial sustainability – property insurance and implementation of energy-efficient technologies, which reduces maintenance costs. At the regional level, these measures are implemented by local governments through programmes for sustainable development and ensuring a safe educational space. It has been established that improving education administration at the regional level during the war hinges on digitalisation (the Automated Information Complex of Educational Management, or AICOM), optimising the network of institutions, increasing financial autonomy, and introducing specialised secondary education (12 years). The key areas are security (shelter), adapting to blended learning, and attracting international grants for restoration. Promising areas for improving the administration of the protection of the infrastructure of educational institutions at the regional level in wartime conditions: 1) digitalisation of management – active use of the AICOM analytical module to monitor the real situation in institutions; 2) restructuring of the network – creation of a capable network of lyceums that provide specialised secondary education (grades 10-12) in accordance with the requirements of the New Ukrainian School (NUS); 3) management of displaced HEIs – monitoring of activities and effective optimisation of the network of displaced higher education institutions; 4) security environment - priority arrangement of shelters for full-fledged continuous education and creation of a safe educational space. It is substantiated that promising areas for improving the financing of the system of protecting the infrastructure of educational institutions at the regional level in conditions of martial law are: 1) financial autonomy – expansion of the rights of higher education institutions to independently dispose of funds; 2) grant activities – attraction of extrabudgetary funds and international assistance to restore destroyed infrastructure; 3) flexible budgeting – reorientation of expenditures to ensure distance and blended learning (technical equipment); 4) monitoring of effectiveness – implementation of criteria for assessing the development of education, developed, for example, by the Decentralisation for the Development of Democratic Education (DECIDE) project for the effective use of the community budget. It is proven that the main challenges remain the reduction of expenditures and the need to modernise infrastructure in conditions of military operations.

ECONOMIC SYSTEMS IN THE CONTEXT OF DIGITALISATION AND AI: THEORETICAL AND LEGAL MODELLING

Yana Tytska — 2026-05-04

The present article examines four interrelated elements of the economy: namely, markets, labour, production, and distribution. These elements thus function as principles and laws. This approach is predicated on the premise that laws exert their influence on the economy from within rather than as extrinsic forces. The permitting of data and algorithms, the financial implications of compliance, the risk of legal action, and the equitable distribution of the benefits of digital transformation are all challenging within regulatory frameworks. It is therefore incumbent upon regulatory bodies to ensure that all individuals have access to data, support platform markets, and that artificial intelligence redistributes wealth among the owners of capital, data and labour. An additional chapter is devoted to an examination of the legal systems of Ukraine and the EU. The European Union has established standards for the digital economy and has fully embraced artificial intelligence. The scope of these regulations encompasses platform usage, digital goods liability, data protection (GDPR), and artificial intelligence (AI). However, the majority of the laws adopted in Ukraine are based on extant structures and systems. The cultural and procedural differences between Europe and Ukraine are of particular relevance to business and legal matters. These factors pertain to regulatory stability, the cost of innovation, data accessibility, the balance of market power, and guarantees for consumers and employees. It is recommended that the development of comprehensive rules for the digital economy be pursued, with these rules being adapted to suit the requirements of national institutions and with inspiration being drawn from European models. Moreover, the analysis indicates that the proliferation of digital technologies necessitates a recalibration of the equilibrium between legal certainty and technological innovation. In the absence of explicit legislation pertaining to the utilisation of digital data and artificial intelligence, the economic potential of these technologies may remain unexplored, whilst concomitantly resulting in increased market concentration, inequality, and the risk of personal information being misused. It is imperative that future research endeavours concentrate on conducting empirical assessments of the economic ramifications of artificial intelligence. This is particularly salient in the context of enhancing productivity, restructuring the labour market, and ensuring equitable income distribution. The subject of the present study is the transformation of modern economic systems as a result of digitalisation and the introduction of artificial intelligence, as well as the legal mechanisms that regulate these processes. Methodology. The study was conducted using standard scientific methods. A comparative approach was employed to analyse and synthesise various theoretical perspectives on the study of digitalisation and artificial intelligence within economic systems. In the context of technological transformation, this analysis identified key structural elements of the digital economy, including the market, labour relations, productivity dynamics and income distribution. Through this process of synthesis, a theoretical and legal model of the economic system was developed, combining economic mechanisms with the regulatory parameters that govern the use of digital platforms, algorithms, and data. Using inductive and deductive methods, the main patterns of interaction between legal regulation and technological development were identified. General decisions were also made about how legal frameworks govern the digital economy. Furthermore, a comparative approach was employed to analyse regulatory strategies for the digital economy and artificial intelligence governance in the EU and Ukraine. This allowed the study to highlight significant institutional differences between these legal systems and evaluate their potential influence on economic growth and innovation. This article aims to examine the impact of digitalisation and artificial intelligence on changes to the economic system, and to develop a theoretical and legal model that explains the interaction between technological development, economic processes, and regulatory frameworks. The study seeks to understand the influence of laws governing the use of data, algorithms, digital platforms and artificial intelligence on labour relations, productivity dynamics, income distribution and market functioning. It also examines regulatory approaches to the digital economy and artificial intelligence in the European Union and Ukraine, identifying institutional differences and assessing their impact on innovation and economic development. The results of the study show that the rise of digital technologies and artificial intelligence will dramatically improve the way existing economic systems function. Digitalisation is making data and algorithmic systems increasingly important economic resources, thereby changing the way markets operate, how labour is organised, how productivity is measured and how income is distributed. Conclusion. A study of the transformation of economic systems in the context of digitalisation and artificial intelligence has revealed that technological innovations, monetary policy and legislative measures are having an increasingly significant impact on the performance of modern economies. The proposed theoretical and legal model considers law to be an integral part of the economic system that influences income distribution, labour relations, market structure and productivity dynamics. This distinguishes it from traditional approaches. It can explain how data, artificial intelligence, digital platforms and competition laws shape the institutional conditions for developing the digital economy. A comparison of the Ukrainian and EU legal and regulatory frameworks revealed significant differences in their respective regulatory and institutional development patterns. The European Union has already established a comprehensive legal and regulatory framework for the digital economy and artificial intelligence. This includes special legislation governing data management, the platform economy, labour conditions and product liability in the digital environment. The existing Ukrainian legislation on personal data protection, electronic communications, competition policy, cybersecurity and digital sector incentives essentially forms the legal basis for the developing digital economy. However, there are some institutional gaps in the governance of digital technologies due to the absence of a unified regulatory system designed specifically for artificial intelligence. This study's practical significance lies in broadening the theoretical basis of the digital economy and artificial intelligence from economic and legal standpoints. The results of this comparative analysis and the proposed conceptual model could inform the development of more effective regulatory policies to ensure balanced interaction between technological innovation, economic growth and the protection of socioeconomic rights in the context of rapid digital transformation.

PROFILES OF EUROPEAN UNION COUNTRIES IN THE FIELD OF DIGITAL AND KNOWLEDGE-BASED ECONOMIES

Maryna Tatar — 2026-05-04

This article aims to create country profiles for European Union Member States, based on indicators that capture digital access and usage, business digitalisation and e-commerce, as well as human capital and innovation capacity. The empirical results reveal significant differences between countries in the adoption of e-commerce. Northern and Western European countries have a high proportion of enterprise turnover generated through e-commerce and a high proportion of firms that receive online orders. In contrast, several Southern and Eastern European economies have markedly lower levels. The distribution of human resources in science and technology is marked by significant disparities, with pronounced concentrations observed in knowledge-intensive economies such as Luxembourg, Sweden, Ireland, and the Netherlands, and persistently lower shares evident in several Eastern and Southern European countries. These disparities are closely aligned with differences in innovation capacity, as reflected by research and development expenditure. The analysis confirms a pronounced North–West versus South–East divide in R&D intensity, with only a limited group of countries consistently exceeding the 3% of GDP benchmark. Despite the fact that domestic internet access is almost universal throughout the EU, the intensity of digital usage by individuals varies considerably, thereby highlighting a persistent digital usage gap. This finding indicates that access alone is inadequate to ensure effective participation in the digital economy. The conducted cluster analysis identifies three distinct digital and knowledge economy profiles, ranging from highly digitalised and innovation-driven economies to countries with weaker digital engagement and limited innovation capacity. The findings emphasise that digital transformation in the EU is influenced not only by infrastructure availability but also by human capital, innovation systems, and the effective use of digital technologies. The findings of this study carry significant ramifications for the digital and cohesion policies of the European Union, underscoring the necessity for targeted strategies that address inherent disparities and foster inclusive digital and knowledge-based growth.

FROM MARKET INTEGRATION TO LAW ENFORCEMENT INTEGRATION: THE ECONOMIC FOUNDATIONS OF EUROPEAN POLICE CO-OPERATION

Hashmatulla Behruz — 2026-05-04

The article analyses the development of police co-operation in Europe as a structural response to the intensification of economic integration within the European Union. It argues that the creation of the internal market—characterised by the removal of internal borders, the liberalisation of capital and goods, regulatory harmonisation and digitalisation—not only increased efficiency and reduced transaction costs for legitimate economic participants, but also produced enforcement externalities and collective action dilemmas in the area of transnational crime. The growth in cross-border financial flows and mobility was driven by economic interdependence. This created opportunities for regulatory arbitrage, money laundering, fraud and cyber-enabled economic crime. Consequently, internal security gradually became embedded within the Union’s economic governance framework. Drawing on concepts from European integration, particularly liberal intergovernmentalism, the article demonstrates how exposure to economic risks at different levels affected countries' desire to utilise collective enforcement mechanisms. The transition from the TREVI Group's informal coordination to the establishment of Europol was a logical response by Member States to the increasing costs of independently enforcing laws in an increasingly integrated market. Europol's expanding remit, which now encompasses financial crime, counterfeiting, cybercrime and fraud, highlights the importance of countries collaborating to ensure a fair market, maintain financial stability and promote fair competition. The establishment of specialised organisations such as the European Cybercrime Centre demonstrates that law enforcement is adapting to the digital transformation of the European economy. The article concludes that police co-operation has become essential to the EU’s economic resilience and strategic autonomy.

LOCAL SELF-GOVERNMENT IN UKRAINE AND THE EU: ECONOMIC CO-OPERATION

Oleg Gurynenko — 2026-05-04

This article provides a comprehensive economic analysis of the co-operation between the local governments of Ukraine and the Member States of the European Union between 2014 and 2023. The study aims to identify the institutional, financial and regulatory mechanisms of interaction at regional level (i.e., within Ukrainian regions) and to assess their impact on the financial autonomy of territorial communities. The theoretical basis lies in the concepts of fiscal decentralisation, the principle of subsidiarity, and institutional economics. The methodology combines an institutional approach with econometric modelling and comparative legal analysis. The empirical base includes data on local budget revenues, the volume of EU international technical assistance and the participation of regions in cross-border co-operation programmes, as well as macroeconomic indicators for the period 2014–2023. A separate comparative analysis was carried out using Poland as a case study, as it has undergone a similar stage of local government reform. The modelling results confirm the statistically significant positive impact of participation in EU programmes and financial support instruments on the growth of Ukrainian regions' own revenues. It has been proven that economic and legal co-operation contributes to institutional convergence with European standards, as well as strengthening the financial independence of local governments. The proposal is for an integrated model of economic interaction between Ukrainian and EU regions.

ENHANCING DURBAN’S BUSINESS TOURISM THROUGH STRATEGIC BRAND ORIENTATION AND STAKEHOLDER COLLABORATION

Charmaine Chelsea Kujinga — 2026-05-04

Durban has faced criticism for its underperformance in global business tourism, largely due to fragmented stakeholder collaboration, weak destination management, and inconsistent brand orientation. This study aims to enhance Durban’s business tourism by proposing a strategically aligned, LED-driven branding approach that fosters stakeholder cooperation and shared opportunities. A descriptive research design was adopted, with data collected via a census of all event suppliers registered with the Durban KwaZulu-Natal Convention Bureau (DKCB). A 32-item close-ended questionnaire captured primary data, while secondary data informed the literature review. Findings reveal key themes that require attention in Durban’s destination marketing: consistent and quality knowledge building, cooperative stakeholder strategies, supportive government policy, and equitable stakeholder participation. Despite policy awareness, many respondents do not experience tangible benefits, citing poor implementation and lack of inclusivity. Most event suppliers operate independently, prioritising competition over collaboration, and report minimal engagement in the city’s marketing strategy. The study recommends that brand orientation must clearly define Durban’s brand identity, foster inclusive participation, and empower the DKCB as the brand custodian. Stakeholders must be guided on how to align their operations with the city's brand strategy, ensuring coherence, engagement, and global competitiveness.

ECONOMIC SUSTAINABILITY AND GOOD GOVERNANCE: THE ROLE OF PARLIAMENTARISM AND CONSTITUTIONAL RESPONSIBILITY IN UKRAINE’S EU INTEGRATION

Nataliia Omelchenko — 2026-05-04

Good governance and economic sustainability are fundamental prerequisites for Ukraine’s successful integration into the European Union. In the context of martial law and accelerated Europeanisation, the effectiveness of parliamentary institutions and constitutional accountability mechanisms is crucial for ensuring long-term economic resilience and protecting constitutional freedoms. This article examines how parliamentarism and constitutional responsibility influence good governance and economic sustainability in Ukraine’s EU accession process. Drawing on the doctrinal concept of constitutional freedom as the axiological foundation of Ukrainian constitutionalism, the study analyses the interaction between parliamentary institutions, constitutional accountability mechanisms and economic governance. The research employs doctrinal analysis, an institutional approach, a comparative legal method and an examination of EU enlargement policy documents. Despite notable legislative reforms aimed at increasing transparency and public participation, the findings demonstrate that martial law has resulted in the centralisation of executive power and a significant weakening of parliamentary oversight. This has given rise to a hybrid institutional model in which formal alignment with EU standards coexists with reduced constitutional accountability and fewer safeguards for constitutional freedoms. These imbalances in the institutional landscape increase policy uncertainty, reduce investor confidence and threaten long-term economic sustainability. The article argues that constitutional responsibility should be understood as both a set of sanctions and a value-based instrument for safeguarding constitutional freedom and ensuring credible democratic governance. Reducing governance risks and building sustainable economic institutions requires strengthening parliamentary accountability and aligning constitutional responsibility mechanisms with EU standards. The study provides practical recommendations for enhancing institutional resilience during wartime and the subsequent reconstruction period. It emphasises that Ukraine can only achieve the protection of constitutional freedom and the economic sustainability required for full European integration by embedding constitutional responsibility as a living and enforceable value.

ECONOMIC EFFICIENCY OF PUBLIC AUTHORITY AS THE BASIS OF LEGITIMACY AND INSTITUTIONAL TRUST IN WARTIME

Liliya Yakovleva — 2026-05-04

One dimension of the Russo–Ukrainian war is the confrontation between authoritarianism and democracy in economic matters. Ukraine is currently engaged in a dynamic process of establishing the democratic legitimacy of public authority. This legitimacy requires public authorities to be economically efficient. This means that public authorities in Ukraine must ensure institutional stability and deliver effective governance. The legitimacy of public authority is a significant factor in achieving victory in wartime. The Russo–Ukrainian war is a convincing example of how resource mobilisation in wartime can only be achieved through societal unity and trust-based relations between the government and its citizens. Institutional trust arises from economic efficiency. War creates a situation that requires the stability of public institutions, as well as the ability to demonstrate economic effectiveness, mobilise resources, maintain public trust and ensure effective strategic management. Theoretical models of legitimacy, both classical and contemporary, need to be reconsidered in light of the specific economic processes that occur during wartime. Political democracy must be complemented by economic democracy. In wartime, the legitimacy of public authority is based on trust in key institutions such as the president, the government and parliament. While the government may resort to restricting certain democratic procedures in wartime (such as media censorship, banning threatening political parties and suspending elections), this should not undermine the fundamental principles of democracy and the rule of law. This article aims to determine the legitimacy of public authority under wartime conditions by examining the relationship between institutional trust and government economic performance. The focus of this paper is to define the economic efficiency of public authorities as the basis for their legitimacy and the trust placed in them during wartime. In the months following the outbreak of the Russo–Ukrainian war, public trust in most government institutions increased. This was driven by a recognition of the need for national unity in the face of an external threat. However, the level of trust in state institutions has declined over time compared to the first year of the war. While trust in many institutions remains higher than before the war, high levels of trust are primarily reserved for those directly responsible for the country’s defence, such as the Armed Forces of Ukraine, the National Guard, the State Border Guard Service and the Security Service of Ukraine. Trust in the President is higher than before the war, which is linked to his role as Supreme Commander-in-Chief. Trust in volunteer organisations and civil society, as well as in the banking system, has also increased since the war. Sociological studies consistently reveal an imbalance in institutional trust: the highest levels are found in the defence and security sector (the Armed Forces of Ukraine, the State Emergency Service, and volunteer organisations and defence formations), while political institutions of representation and governance (political parties, parliament, the government, the bureaucracy and the judiciary) are subject to chronic distrust. Between 2025 and early 2026, Ukrainian society will prioritise the state's economic effectiveness over electoral legitimacy.

PROTECTION OF THE RIGHTS AND LEGAL INTERESTS OF DEMOGRAPHICALLY VULNERABLE POPULATION GROUPS: ADMINISTRATIVE AND LEGAL DIMENSION OF ECONOMIC DEVELOPMENT AND POST-WAR RECONSTRUCTION OF UKRAINE

Oleksandr Krupytskyi — 2026-05-04

The article examines the protection of the rights and legal interests of demographically vulnerable population groups through the prism of their impact on the economic development and post-war reconstruction of Ukraine. It is substantiated that demographic vulnerability has not only a socio-legal, but also a distinct economic meaning, as it is associated with a decrease in the level of employment, increasing poverty, increasing the burden of dependency, narrowing the tax base and increasing spending on social support, healthcare and public services. It has been established that children, persons with disabilities, the elderly, internally displaced persons and other demographically vulnerable groups are an important element of human capital, on which the stability of the labor market, the restoration of productive resources and the economic capacity of the state depend. It has been proven that effective administrative and legal support for the rights of these groups should combine procedural accessibility, targeted economic support mechanisms, the development of inclusive services, employment stimulation and coordination of social policy with the needs of reconstruction. It is concluded that the protection of demographically vulnerable groups is a necessary prerequisite for preserving labor potential, reducing socio-economic losses and ensuring long-term post-war development of Ukraine. Research methods. The methodological basis of the study is dialectical, systemic-structural, formal-logical, comparative-legal methods, methods of analysis and synthesis, which allowed a comprehensive study of the financial and economic mechanisms for ensuring the stability of critical infrastructure in conditions of crisis transformations. The expected scientific result is to clarify the concept, content and features of ensuring the rights and legitimate interests of demographically vulnerable population groups: the administrative and legal dimension of economic development and post-war recovery of Ukraine. The purpose of the article is to study the issues of ensuring the rights and legitimate interests of demographically vulnerable population groups: the administrative and legal dimension of economic development and post-war recovery of Ukraine. Conclusions. The study found that demographically vulnerable groups should be considered as a separate legal and economic category, which is not identical to the general category of “vulnerable groups”, since its content is determined primarily by demographic characteristics and the life cycle of a person, and the legal consequence is the need for enhanced administrative and procedural guarantees of accessibility, priority, reasonable accommodation and proactive provision of services. The study shows that in the economic dimension, demographic vulnerability manifests itself through a decrease in labor potential, an increase in the dependency burden, increased social security costs and greater sensitivity to administrative barriers, and therefore it directly affects the quality of human capital, budgetary sustainability and the pace of economic recovery. It has been established that migration processes, poverty, population aging, security threats and institutional barriers increase the number and depth of demographic vulnerability, and prolonged martial law further worsens the situation due to increasing poverty, reducing the labor force and narrowing domestic demand. As a result, the tax base, investment potential and the state's ability to quickly recover after the war are weakened. Therefore, an effective solution to the problem under study is possible only if administrative and economic mechanisms of influence are combined: simplified and accessible procedures, interagency coordination, digital inclusion, free legal aid, as well as targeted social transfers, budget financing, employment programs, housing support and other long-term instruments that reduce the risk of poverty and social exclusion of demographically vulnerable groups. It is such a comprehensive model that should become the basis of state policy in the field of economic development and post-war recovery of Ukraine.

CREATIVE INDUSTRIES INNOVATION DIFFUSION NETWORKS. SYSTEMATIC LITERATURE ANALYSIS

Deimantė Krisiukėnienė — 2026-05-04

Research background: innovation is a key factor in determining the growth of the creative industries sector. However, it also highlights the importance of the creative industries to the broader innovation process within the wider economy. Synergies between the creative industries and companies in other sectors create conditions for the diffusion of new tech-nologies. Creative industries companies typically utilise a large, diverse network of relationships, facilitating easy access to new knowledge and faster assimilation. Purpose of the article: the purpose is to present a sys-tematic literature review of research papers on creative industries, innova-tion diffusion and network analysis, and to identify future research direc-tions. Methods: this paper presents the results of a systematic literature review of 54 articles on innovation diffusion networks within the creative industries, as indexed in the Web of Science database. Findings & Value: the study reveals that innovation diffusion within the creative industries has positive effects within the sector and across the broader economy. The review also reveals that qualitative and mixed-method approaches domi-nate the current research landscape, indicating a need for more robust quantitative modelling in future studies. Results from scientific research analysing the impact of innovation diffusion networks on the creative in-dustries sector have shown that existing networks significantly affect the social and economic environment of other industries, regions and the na-tional economy. Although the authors emphasise the importance of net-works for the diffusion of innovations in the creative industries sector, few empirical studies have focused on identifying these networks.

ECONOMIC SECURITY OF ENTERPRISES: A BIBLIOMETRIC ANALYSIS

Maryna Kravchenko — 2026-05-04

This study examines the economic security of business entities by conducting a systematic bibliometric analysis of academic research indexed in the Scopus database. Due to digital transformation, growing technological dependence, market volatility and heightened exposure to economic and information-related risks, economic security at the enterprise level has become an increasingly important research topic. In this context, economic security is understood to encompass not only financial stability, but also broader organisational capabilities such as information protection, risk management, resilience, and innovation-driven adaptation. The study focuses on the body of academic research devoted to the economic security of business entities. This article aims to identify the intellectual structure of this research field and its dominant thematic areas and geographical patterns of scholarly contributions. It also seeks to determine underexplored research directions relevant to contemporary enterprise security challenges. To this end, a bibliometric research design was employed. The analysis is based on a final dataset of 87 publications from 2004 to 2025. Bibliometric techniques were employed via VOSviewer and the Bibliometrix (Biblioshiny) package to analyse co-citation networks, keyword co-occurrence and thematic clusters. The results reveal a multidimensional research landscape centred on information security, risk management, financial stability and technological innovation. The findings suggest an increasing focus on resilience-oriented and integrative security frameworks, reflecting a shift away from narrowly defined protective approaches towards more comprehensive organisational models of economic security. The analysis also reveals a geographically diverse research landscape, with notable scholarly contributions emerging from Eastern Europe, East Asia, and developed economies. These patterns reflect region-specific economic, institutional and security challenges that influence research priorities and methodological approaches. At the same time, however, the bibliometric evidence highlights persistent gaps relating to crisis resilience, the governance of information security, and the integration of emerging digital technologies at enterprise level. Based on the results obtained, the study concludes that research on the economic security of business entities is still fragmented and interdisciplinary, and requires stronger integration of strategic and technological perspectives. By providing a structured overview of existing literature, the study clarifies enterprise-level economic security research and suggests directions for future academic enquiry and managerial practice.

FEATURES OF TAXATION OF HIGH-TECH PRODUCTION OF DIGITAL BUSINESS

Kateryna Kraus — 2026-05-04

The purpose of the scientific research is to identify and argue the relationship between the quality and amount of taxation of digital products and services, and the development of digital businesses. It also aims to propose tax incentives for e-businesses. The focus of the scientific research is the digital competitiveness of countries in 2023, as well as the variables that influence it, such as GDP per capita, population size and the digital quality of life index. The research also examines the digital capabilities and innovative solutions that countries use to strengthen their competitive position in a globalised world. Methodology. Research using a graphical method to change the optimal production volume of a digital enterprise, alongside the methods of comparison, analysis and synthesis, made it possible to identify and explain the influence of tax principles and types of tax on digital products and services on the functioning of digital businesses in different countries worldwide (direct dependence). Results. The research revealed a significant correlation between the quality of digital service taxation and digital business development. Furthermore, the higher a country's knowledge and technological results, the faster its high-tech production scales. The impact of knowledge and robotics on the development of high-tech production is presented visually and explained. During the study of digital taxes, it was found that the order in which they are collected in many countries corresponds to the modern principles of taxation. Currently, institutionalisation of taxes on digital goods and services is underway, with tax rates ranging from 1 to 20%. Collection rules are periodically adjusted as the tax base expands. Practical implications. From a practical point of view, the publication's value lies in the author's recommendations for improving the quality of taxation for digital businesses and high-tech production. These recommendations will ensure the rapid filling of budgets in the future and contribute to sustainable economic growth. Value/Originality. The article reveals the issue of the digital capabilities of businesses and their management, and the ability of governments to make innovative economic decisions in order to strengthen their competitive position in the world in the context of globalisation. The article's contribution to theoretical scientific heritage lies in its study of taxes imposed on e-entrepreneurship and virtual businesses, assessing their impact on the level of digitalisation in the economy and production, as well as on budgetary revenues.

TRANSFORMATION OF THE DIGITAL TOURISM SYSTEM: FROM INTELLIGENT AGENTS TO AGENTIC AI

Hanna Mykhailichenko — 2026-05-04

The purpose of the paper is to examine the structural and functional transformation of the digital tourism ecosystem during the transition from traditional intelligent assistants, such as LLM-based chatbots, to a new paradigm of Agentic Artificial Intelligence. The subject of the present study is the qualitative transition from passive digital tools that rely on continuous human prompts to subjective systems characterised by autonomous planning, multi-agent coordination, and independent execution of complex service chains. The research methodology is based on a systems approach and organisational theory, using comparative analysis of artificial intelligence architectures to highlight the functional evolution of the industry. The methodological framework underpinning this study is predicated on the cyclical Action Research model, which encompasses planning, action, observation, and reflection. This model elucidates the iterative reasoning and self-repair capabilities of Agentic systems. Furthermore, the study employs the notion of multi-agent orchestration to model the interaction between specialised digital entities and proposes a conceptual model for assessing the socio-economic and ethical aspects of AI implementation, balancing human interests, environmental sustainability, economic profit and long-term development potential. The primary objective of this study is to provide a conceptual justification for the transition from auxiliary service tools to full-fledged digital management entities in tourism. The article provides a comprehensive overview of the conceptual features of Agentic AI, advances a functional model for its application in the tourism sector, and posits that these systems have the capacity to autonomously manage fragmented tourism services, including logistics, accommodation, and insurance, into a unified, personalised, and self-correcting service chain. The analysis determines that Agentic AI represents a fundamental change in the design of intelligent systems, going beyond the linear processing typical of traditional chatbots. The key conclusion is that Agentic AI serves as an integral element of the management subsystem, capable of implementing the full cycle of classic management functions, such as strategic planning, dynamic organisation through orchestration, and iterative control through feedback loops. The study concludes that Agentic Artificial Intelligence is defined not simply as a technological upgrade, but as a new paradigm of digital management integrated into the complex socio-economic processes of the global tourism industry, marking a transition from auxiliary service tools to autonomous digital workers.

ARTIFICIAL INTELLIGENCE IN WARTIME UKRAINE: BUSINESS ADOPTION, INVESTMENT INTENTIONS, AND LABOUR-MARKET EXPECTATIONS

Nadiia Pylypenko — 2026-05-04

This study examines the factors that determine whether firms adopt AI and are ready to invest, and explores labour-market and employment-related expectations in wartime Ukraine. Methodology. The study is based on original survey data collected in a frontline region of Ukraine during wartime. The sample comprises 300 respondents from various socio-economic backgrounds. The empirical analysis uses descriptive statistics, nonparametric tests and ordinal and binary logistic regression models. The study also presents an original composite AI-readiness index (ranging from 0 to 100) which assesses preparedness for AI adoption by integrating organisational, behavioural and investment-related dimensions. All statistical analyses were conducted using R statistical software. Results. The findings suggest that organisational readiness plays a key role in determining current AI adoption and firms’ willingness to invest in AI. Expected efficiency gains from AI greatly increase investment intentions, while prior AI adoption has a cumulative effect on further investment readiness. Furthermore, adaptive capacity is positively associated with more favourable perceptions of AI in wartime. The fear of losing one's job to AI is significantly higher among employees engaged in routine-intensive tasks, but this effect is significantly reduced by higher education, which confirms the moderating role of human capital. Perceived AI-driven efficiency gains vary considerably across social groups, with citizens being more optimistic than business representatives and workers. The proposed AI-readiness index reveals significant differences in AI readiness among firms of different sizes, sectors, and geographic scopes. Practical implications. The results are relevant to business decision-making and economic policy in wartime. The findings show that the adoption of artificial intelligence in business is primarily determined by organisational capacity, institutional support and adaptive capability rather than technological accessibility alone. For firms, this highlights the importance of taking a systemic approach to the use of artificial intelligence in strategic planning. In frontline regions, human capital policy—including digital education, reskilling and regional co-operation between enterprises and educational institutions—is particularly relevant, as it can support economic adaptation and mitigate employment-related risks. Value/Originality. This article makes a contribution to the body of research on the adoption of artificial intelligence and employment-related perceptions under wartime conditions. Unlike previous empirical studies, which were conducted in contexts of institutional stability and predictable market environments, this study examines decision-making related to artificial intelligence in a border region of Ukraine that is close to active hostilities. Here, economic expectations, investment behaviour and perceptions of employment risks are all shaped by ongoing security threats. The study's originality lies in its integration of firm-level determinants of artificial intelligence (AI) adoption with individual-level economic expectations and employment-related responses. By incorporating organisational readiness, investment intentions and labour-market perceptions into a single analytical framework, the article broadens the scope of existing AI adoption approaches by considering organisational, economic and socio-behavioural factors in a wartime context.