Baltic Journal of Economic Studies

THE INFLUENCE OF SUSTAINABLE PRACTICES IN THE HOSPITALITY INDUSTRY ON CONSUMER DECISION-MAKING

Julija Mironova, Inguna Zusevica, Zaiga Oborenko — Thu, 13 Mar 2025 00:00:00 +0000

Sustainability has become an integral part of business strategies, influencing both operational decisions and customer choices. As people become more aware of environmental and social issues, many are looking for hospitality services that align with their values. But how much do sustainability efforts actually influence customers' choices of where to stay? This study explores this question by analysing whether sustainable practices in the hospitality industry influence consumer preferences. In order to comprehend the aforementioned correlation, the authors of this study conducted a survey with the objective of acquiring insights into customer attitudes towards sustainability in the hospitality industry. The survey encompassed pivotal domains such as eco-friendly initiatives, energy efficiency, waste reduction, ethical sourcing, and corporate social responsibility (CSR). Utilising the statistical software SPSS, the authors employed descriptive statistics and Kruskal-Wallis non-parametric tests to examine whether hotel sustainability practices have a greater impact on the decision-making process of customers with higher education compared to those with lower education levels. The findings of the study demonstrate that sustainability is a significant consideration for customers. Individuals are more inclined to select hotels that demonstrate a commitment to meaningful sustainability initiatives. Moreover, the data indicates that consumers with a higher educational background place a greater value on sustainability when making their decisions. This research underscores the mounting significance of sustainability as a competitive advantage in the hospitality sector. Companies that integrate strong and transparent sustainability practices not only help the planet, but also attract a more loyal and conscious customer base. These findings provide valuable guidance for hospitality managers and policymakers, emphasising the need for sustainability initiatives that are both impactful and well communicated.

STATE AND PRIVATE DIGITAL PLATFORMS: HOW CAN THE NEXT TECHNOLOGICAL BREAKTHROUGH BE ACHIEVED?

Jurijs Baltgailis, Anastasiia Simakhova, Stanislavs Buka — Thu, 13 Mar 2025 00:00:00 +0000

The article is devoted to the analysis of the possibilities of new technologies to become the basis of the next world cycle and to create trends in labour productivity, which many countries of the world are facing. The subject of the study is new technologies and their impact on economic development. The purpose of the article is to highlight the economic trends of new technologies, which will become the basis for the rise of the next world economic cycle and create trends of increasing labour productivity, with the decline of which most countries of the world have been confronted. The article employs a range of analytical and synthetic methods, as well as systematic and comparative data analysis. The information base of the article comprises scientific articles, monographs and open statistical data from internet resources. The article provides an analysis of trends in the development of digital currencies. The article examines indicators of labour productivity, inflation rate, GDP growth rate, public debt. The research has shown that for the last 20 years there has been no stable sustainable growth of labour productivity, GDP growth has slowed down, which in recent years has practically not grown, the most developed countries are increasing public debt, as the stagnation of labour productivity does not allow to make projected budgets and pay old debts. This suggests that further economic growth requires a new wave of technological progress, which can be ensured by an excess of "cheap money". Debt is growing and serves as an additional emission of money that is hastily thrown into the economy, as in Japan and the US, for example, but it is not taken into account that this is very expensive money because the interest on the bonds issued has to be repaid, which places an additional burden on the budgets. In conclusion, with rising public debt and stagnating GDP growth, it will be difficult for the state to cope with the influence of big data, and managers of such companies can have a noticeable influence on the political system of any country. This suggests that further economic growth requires a new wave of technological progress, which can be ensured by an excess of "cheap money".

SMALL STEPS, BIG IMPACT: NAVIGATING SOCIAL RESPONSIBILITY WITH A SOCIAL INNOVATION FOCUS IN SMES

Kjartan Sigurdsson, Hjördís Sigursteinsdóttir, Helga Kristjánsdóttir — Thu, 13 Mar 2025 00:00:00 +0000

This study explores the characteristics that influence the adoption of social responsibility by small and medium-sized enterprises (SMEs) and its potential link to social innovation. The present study employs a qualitative multi-case study methodology in order to explore SME perspectives on social responsibility and stakeholder influence. This exploration is conducted through the medium of semi-structured interviews with ten SME representatives. In-depth analysis within and across cases reveals clear patterns. The findings highlight the availability of resources as a significant barrier to integrating social responsibility into SME business operations. The willingness to embrace social responsibility is primarily shaped by the personal beliefs of SME managers, highlighting the key role of intrinsic motivation in upholding ethical standards. The owner-managed capital structure of SMEs facilitates independent decision-making with regard to social responsibility investments. Furthermore, this study highlights an evolutionary process: Initially value-driven SMEs gradually prioritise the integration of social responsibility as they mature over business cycles. Interestingly, employees emerge as the key innovators driving societal progress, and their well-being is a key incentive for active engagement in social responsibility. Moreover, the influence of employees, customers and the community on social responsibility decisions exceeds that of shareholders and investors. While certain stakeholders have significant influence over SMEs' commitment to social responsibility, these companies often fail to recognise the strategic benefits of such integration. Bridging this awareness gap could be achieved through the active involvement of stakeholders and the strategic recruitment of professionals with expertise in sustainable management. This study lays the groundwork for future research, encouraging the investigation of the relationship between resource endowments and SME engagement in socially responsible activities, and exploring stakeholder motivations that drive participation in socially responsible endeavours.

FINANCIAL ABUSE OF PUBLIC OFFICIALS: CHARACTERISTICS AND PROBLEMS OF LIABILITY

Yuliia Abakumova, Oleksandr Prasov, Olha Symonenko — Thu, 13 Mar 2025 00:00:00 +0000

The purpose of the article is to study the issues of characterisation and liability for financial abuse of public officials under the laws of Ukraine and other countries, with a view to eliminating the existing gaps in legislation. The results of the study are based on the analysis of the development of the regulatory framework for liability of officials of various levels for financial abuse, including for misappropriation of property through abuse of office in Ukraine, some European countries and other states. The article describes the concept and characteristics of an official. The present article conducts an analysis of the principles of activity that pertain to officials. The investigation encompasses the conceptualisation and typology of official abuse within the financial sphere perpetrated by officials. The article provides a comprehensive overview of the procedural framework and the principles of liability that govern officials' actions in such contexts. The authors analyse foreign experience in combating corruption, in particular in the USA, France and the UK. The article analyses the legal framework that regulates the issue of liability for criminal acts related to financial abuse of public officials. Proposals are made to take into account foreign experience in the process of combating corruption. The paper substantiates the need for a systematic and comprehensive approach to combating such a negative phenomenon as corruption. The types of criminal offences committed by public officials are systematised and classified under Ukrainian criminal law. Value/Оriginality. Financial misuse by public officials is a manifestation of corruption. The indicators of the Corruption Perceptions Index can be improved through a systemic public policy aimed at counteracting this negative phenomenon. The article provides proposals for taking into account and applying foreign experience in combating financial abuse of public officials and corruption. In particular, it is noted that in order to increase the effectiveness of combating corruption criminal offences in Ukraine, it is considered appropriate to: 1) to create an extensive system of public supervision over the activities of the state apparatus and the process of investigation of such criminal acts; 2) to introduce a mechanism of "unclear procedure for approval of assets" in the process of investigation of criminal offences related to obtaining unlawful benefits, which effectively reveals the unlawfulness of the source and manner of origin of an official's property.

HISTORICAL DEVELOPMENT OF THE CONSTRUCTION INDUSTRY AND ITS IMPACT ON THE ECONOMIC SECURITY OF THE STATE

Volodymyr Buha, Natalia Blazhivska, Olha Kovalova — Thu, 13 Mar 2025 00:00:00 +0000

The purpose of the article is to analyse the historical development of the construction industry and its impact on the economic security of the state. Methodology. The article uses general scientific methods of formal logic (analysis, synthesis, deduction, induction, analogy, abstraction and modelling) and a special method (historical and legal) to reveal the historical development of the construction industry and its impact on the economic security of the state. Results. The genesis of the formation and development of legal regulation of the construction industry in Ukraine was formed under the complex influence of numerous political, social and systemic legal factors and covers separate periods of development: I (IX – early XIV centuries) – the period of existence of Kyivan Rus and feudal fragmentation in the Ukrainian lands, codification of construction legislation and workshop organisation of construction, but almost all construction activities were of a "defensive" nature; II (XIV – XVI centuries) – the period when Ukrainian lands were under the rule of the Grand Duchy of Lithuania and the Kingdom of Poland – the beginning of development planning, taking into account the successful use of territories, ensuring the proper functioning of military and administrative facilities, as well as fire safety; III (XVI – XVIIІ centuries) - the existence of the Cossack-Hetman state – legal regulation and management of construction was limited to purely technical works aimed at strengthening the defence capability of the Zaporozhian Army, therefore it was of exclusively strategic importance; IV (late 18th – early 20th century) – the period when Ukrainian lands were under the rule of the Austrian (Austro-Hungarian) and Russian Empires – the creation of the first specialised agencies authorised to issue permits for certain types of economic activity and to supervise and control construction; V (early twentieth century – 1991) – the period when Ukraine was part of the USSR – a gradual transition to industrial construction methods; consolidation of construction organisations; improvement of design and estimate documentation; growth in labour productivity, quality of work and the formation of the first trade unions at construction enterprises and associations; subsequently, the unification of functions between the main participants in construction – the customer and the contractor – led to a reduction in the contractor's liability; adoption of the first consolidated regulatory act – the Code of Ukraine on Administrative Offences – aimed at regulating administrative and legal relations in the construction sector; Period VI (from 24 August 1991 to the present) – the period of modern Ukraine – consists of two stages 1) in terms of regulatory development, it was marked by the active development of the national legislative framework, and in terms of functionality – by a total reduction in demand for construction products, inflation, which led to a decrease in working capital, imperfect depreciation policy and massive fraud in the housing market; 2) definition of national standards and rules for construction, emergence of new norms in the sectoral legislation and establishment of various sanctions for their violation, formation of the institutional system of the construction industry with subsequent winding up, reorganisation, etc. Practical implications. When studying the current problems of administrative and legal support in the construction sector and starting to develop a mechanism for the prevention of administrative offences, it should be borne in mind that its regulatory, technical, organisational and managerial effectiveness depends on the state of economic security in the country as a whole.

PROSPECTS FOR THE DEVELOPMENT OF THE ORGANIC MARKET IN UKRAINE IN THE CONTEXT OF THE EUROPEAN GREEN DEAL

Іnna Honcharuk, Roman Lohosha, Dina Tokarchuk — Thu, 13 Mar 2025 00:00:00 +0000

The successful process of Ukraine's European integration is contingent on the rapid development of a new market segment: namely, organic products. This is regarded as a means of increasing the competitiveness of Ukraine's agricultural sector. Concurrently, the production of organic products assumes particular relevance when the state is expected to create conditions for the export of organic agricultural products to the EU. The article is aimed at studying the problems and prospects for the development of the organic market in Ukraine in the context of the European Green Deal. The methodological approach combines a comprehensive review of scientific literature, analysis of industry reports and case studies to assess the development of the organic market in Ukraine. According to the results of the study, Ukraine, following global trends, is gradually focusing on the development of various green sectors of the agri-food system, in particular, the production of organic agricultural products. The development of the organic market is based on organic farming. The area of land under organic farming in countries around the world is gradually increasing in parallel with the introduction of the latest technologies (sensor networks, control of soil moisture, soil temperature, CO2 levels, etc.). At the same time, the number of organic producers is growing both in Ukraine and around the world. Organic products are becoming increasingly attractive to both European and national consumers. In Ukraine, the organic segment of the market is actively developing, as evidenced by the positive dynamics of the agricultural sector. However, a significant share of organic production is carried out uncertified, often without proper regulation. This makes it difficult to monitor this sector, which is mostly composed of farms and private households. Over time, the integration of such farms into the monitoring network will become necessary in the process of formalising the organic market, as the lack of certification limits prices and economic returns. Despite the challenges, including a full-scale war, Ukraine has preserved its organic sector, diversified production and attracted new players to the organic market. Reaffirming its focus on European integration, Ukraine has identified the strategic adaptation of its national organic legislation to EU norms as a key priority. For Ukraine, as an EU partner country, the European Green Deal creates additional opportunities for the development of the organic market. In addition, the European Union supports farmers who implement organic practices through subsidy and financing programmes, which can be an incentive for Ukrainian organic producers. The study found that the domestic market for organic products requires the creation of a modern infrastructure. At the same time, the domestic market of Ukraine remains under the influence of unregulated pricing mechanisms, which leads to overpricing and lack of stable demand for organic products. Further research in this area should focus on the peculiarities of the formation and development of the organic market in Ukraine, in particular from the perspective of small businesses in the context of European integration.

QUALIFICATION GAP IN THE UKRAINIAN LABOUR MARKET IN THE CONTEXT OF WAR: REGIONAL ASPECT

Lidiia Horoshkovа, Viktoriia Sydorenko, Oleksandr Grytsan — Thu, 13 Mar 2025 00:00:00 +0000

The aim of the article is to assess the impact of the war on the state of regional labour markets and the qualification gap for professions requiring higher education. Methodology. In the course of the research, the author used general scientific (analysis and synthesis, induction and deduction, analytical grouping) and special (abstraction, modelling, benchmarking studies, etc.) methods of studying economic phenomena and processes. Results. A study was carried out on the labour market situation among individuals with higher education across the following professional groups: executives and managers; and professionals and specialists in six Ukrainian oblasts (Dnipropetrovsk, Zaporizhzhia, Kyiv, Odesa, Kharkiv, and Khmelnytskyi) and the city of Kyiv, with regard to the existence of a qualification gap. Given that employers' requests primarily shape the job market, the situation for groups of professions requiring higher education was studied, and the availability of the relevant unemployed was compared over time. The qualification gap was determined based on the following considerations. If an employer publishes a need for a specialist in a particular profession (qualification), then if there are unemployed people in the same profession, it means that they do not meet the employer's needs. If they did, then there would be no unemployed. The author proposes a methodology for quantifying the level of the qualification gap, analysing it in dynamics and for any region (regardless of the number of labour force and size) based on the determination of the gap coefficient. It was used to make a comparative assessment of the existence, level and dynamics of changes in the qualification gap for 6 oblasts of Ukraine and the city of Kyiv for specialists with higher education. Possible causes of the qualification gap are identified and analysed. Practical significance. The results have practical implications and can be used to develop measures to overcome the qualification gap in the labour market for people with higher education in times of war and with due regard for the needs of the country's post-war recovery. Relevance/Originality. The novelty of the study is that it proposes a methodology for quantifying the level of the qualification gap, which allows for comparative assessments, regardless of the quantitative characteristics of the labour force and jobs (size) in the region. This made it possible to analyse the situation with the qualification gap in each of the analysed regions and the city of Kyiv, to compare them by this indicator and to identify possible causes of the phenomenon and the impact of migration processes. The analysis showed that there is a potential to overcome the qualification gap both during the war and at the stage of post-war reconstruction of the country.

DIGITAL TECHNOLOGIES IN ADVANCING THE GREEN ECONOMY OPPORTUNITIES FOR GLOBAL BUSINESS AND FINANCIAL STABILITY

Oksana Desyatnyuk, Olena Ptashchenko — Thu, 13 Mar 2025 00:00:00 +0000

The development of the green economy has gained popularity due to the alarming increase in the consumption of natural resources, which has prompted the international community to create a new paradigm of economic activity in line with the sustainable development strategy. An equally important issue was the rapid development of digitalisation and its implementation in all areas of activity. The study therefore focused on the impact of digitalisation on the development of the green economy. The purpose of the study was to identify the positive and negative aspects of the impact of information technologies on the achievement of the principles of the green economy. The research methodology included methods of analysis, synthesis, systematisation, logical comparison and generalisation of results. Based on the analysis of the literature, it was found that there is no clear difference between the concepts of green economy and sustainable development. The primary objectives of sustainable development, as outlined in the Decree of the President of Ukraine, were subjected to thorough analysis. Furthermore, the key challenges hindering the attainment of these objectives, largely attributable to the ongoing war, were meticulously identified. The following conclusions were drawn: among the problems in achieving sustainable development goals, social, economic, political, environmental and organisational problems were identified. These included the growing economic crisis, the danger to people's lives, the destruction of infrastructure, the increase in unemployment, the number of internally displaced persons, the damage to the environment, education and entrepreneurship caused by active hostilities, the occupation of territories and rocket attacks. An investigation was conducted into the means of digitalisation that could be utilised to overcome the aforementioned issues. The following areas were examined: digital marketing, the development of online platforms for the purpose of searching for specialists and partners, educational, social and medical programmes, robotic demining of territories, applications for predicting energy efficiency and environmental friendliness of enterprises, and others. In addition, the negative aspects of the impact of information technologies on achieving sustainable development goals were identified. These include the growth of cybercrime, the security of personal data and financial transactions, the increase in the use of energy resources, and the growth of electronic waste. A proposal was made to improve the formula for determining the green economy development coefficient by determining the coefficients of digitalization productivity, the use of natural resources, and energy efficiency.

PREREQUISITES FOR SECURING BUSINESS ACTIVITIES IN THE CONDITIONS OF GLOBAL ECONOMIC TURBULENCE

Iryna Dubinska, Oleksandr Irtyshchev, Hryhorii Cherkaskyi — Thu, 13 Mar 2025 00:00:00 +0000

The subject of research is entrepreneurial activity in conditions of global economic turbulence. Methodology. In the course of the study, the following economic research methods were used: content analysis method (when processing scientific sources and reviewing the thematic literature), abstract-logical method (when substantiating the key principles and criteria of entrepreneurial activity in the context of global economic turbulence), statistical observations and economic and statistical calculations (when analysing the indicators of entrepreneurial activity in the context of global economic turbulence), abstract-logical method (when substantiating the conclusions of the study). The objective of the research is to analyse the prerequisites for the development of entrepreneurial activity in conditions of global economic turbulence. Conclusion. A thorough analysis of the prevailing signs of global turbulence was conducted, which revealed a characterisation marked by unpredictability and irregularity. These phenomena manifested themselves within socio-economic systems amid conditions of economic crises (pandemics and military operations). It is emphasised that the processes associated with military operations in Ukraine exhibit a turbulent and cyclical nature, necessitating constant re-evaluation of organisational and management mechanisms that facilitate entrepreneurial activity. It has been determined that contemporary global turbulence engenders not only challenges for the functioning of socio-economic systems and entrepreneurship, but also concomitant drivers of development in conditions of uncertainty and unpredictability. It is emphasised that global turbulence, in conjunction with the challenges it engenders, can form the necessary prerequisites for new and innovative development in the sphere of conducting business activities. The analysis of the development of entrepreneurial activity in conditions of global economic turbulence demonstrated that the dynamics of structural shares of gross added value for the years 2010-2022 evidenced the growing importance of wholesale and retail trade, as well as the repair of motor vehicles and motorcycles in the structure of the formation of the gross added value of Ukraine, which increased by 18.17% during the aforementioned period. It is determined that there have been structural shifts in the formation of gross value added due to an increase in the share of the type of economic activity "wholesale and retail trade; repair of motor vehicles and motorcycles" and a decrease in the share of agriculture, forestry and fisheries, industry, construction, trade, transport, temporary accommodation and catering. The analysis demonstrated that in 2022, the largest specific weight in the structure of the formation of the gross added value of Ukraine was occupied by the following sectors: wholesale and retail trade; repair of motor vehicles and motorcycles (34.47%), industry (30.36%), transport, warehousing, postal and courier activities (7.70%), and agriculture, forestry and fishing (7.65%).

CYBER RISK MANAGEMENT IN THE BUSINESS STRATEGIES OF HEALTHCARE INSTITUTIONS AND COMPLIANCE WITH DIGITAL PATIENTS' RIGHTS: EU EXPERIENCE AND PROPOSALS FOR UKRAINE IN WARTIME

Oleh Zaiarnyi — Thu, 13 Mar 2025 00:00:00 +0000

The article examines the issues of cyber risk management in the business strategies of healthcare institutions operating in the European Union, in order to ensure the digital protection of patients and reduce potential negative economic losses. The relevance of the study stems from the rapid development of digital technologies in the healthcare sector and the increasing incidence of cyber threats that compromise the confidentiality of patient data, disrupt the operations of healthcare institutions and pose significant economic risks. The purpose of the article is to study the existing approaches to cyber risk management in the business strategies of healthcare institutions in order to reduce economic losses and ensure compliance with patients' digital rights, and on this basis to formulate proposals for improving the legislation of Ukraine and medical practice, taking into account the challenges of war. The research methods employed encompass the dialectical method, analysis and synthesis techniques to examine the interrelationships between cyber threats and patients' digital rights, statistical analysis to evaluate the prevalence of cyber threats within the European Union, modelling to formulate recommendations, and a comparative legal approach to identify common and distinct approaches in the European Union and Ukrainian legislation concerning the regulation of cyber security in healthcare facilities. The study's primary findings indicate that the most prevalent cyber threats within the digital healthcare sector encompass phishing attacks, malware, disruptions to artificial intelligence algorithms, and insider threats. The European Union has adopted contemporary methodologies in the realm of cyber security, underpinned by the principles of secure design of information systems and data protection in accordance with the rule of secure processing. At the same time, as proved in the article, it is necessary to improve the legislation of Ukraine, in particular by introducing provisions on the processing of medical data in accordance with the principles of the GDPR, strengthening the influence of international ISO standards on the business strategies of healthcare institutions for managing cyber risks and overcoming the consequences of their manifestation. A number of recommendations for Ukraine are proposed, namely ensuring cyber hygiene of medical personnel, integrating data encryption and cyber incident response plans, using artificial intelligence technologies to monitor risks, and adapting European experience to Ukrainian realities. The conclusions emphasise the necessity of implementing the most effective European practices in the realm of cyber risk management within the business strategy of medical institutions in Ukraine. This approach is expected to enhance the level of cyber security, mitigate the risks of violating patients' digital rights, and ensure the economic sustainability of healthcare facilities in the context of the ongoing war against Ukraine.

STRATEGIC GOALS AND QUALITATIVE PROGRESS INDICATORS OF THE PROCESS OF NEO-INDUSTRIALISATION OF THE MANUFACTURING INDUSTRY IN UKRAINE

Olha Ilyash, Nataliia Semenchenko, Andrii Sachenko — Thu, 13 Mar 2025 00:00:00 +0000

Research subject. The article describes a system of strategic objectives and quality metrics associated with the development of neo-industrialisation processes in the manufacturing industry of Ukraine. The article shows that the implementation of the strategic and operational goals of the state policy requires the implementation of a set of measures, the main of which is the determination of the priority areas of the state policy in terms of innovative development and the creation of a "core" of new industries, which are prioritized in the development of high-tech entrepreneurship and increased export potential of the processing industry of Ukraine. Methodology. The scientific research is derived from a systematic approach to the analysis of the entire landscape of neo-industrialisation, which includes the survey of the current state of the industries, the establishment of metrics and methodological tools for the implementation of the development policy of the manufacturing industry. The proposed approach is derived from a combination of economic data analysis, expert opinion and forecasting. Purpose. The aim of the study is to formalise the methods and to justify the steps necessary for the implementation of a neo-industrial strategy that focuses on the technological modernisation of the manufacturing industry, increasing the competitiveness of the national economy and its technological integration into global processes. Conclusion of the study. The article develops the primary objectives of operational importance associated with the achievement of strategic goals in the manufacturing industry, namely the modernisation of infrastructure, the digitalisation of the economy and the creation of conditions for the integration of high-tech innovations into production processes. The article presents the formation and practice of calculation of the regional index of quality progress of the process of neo-industrialisation of the processing industry with the structure and the algorithm of its formation. It is proved that the structure of the index should be formed by indicators consisting of institutional, structural and functional components of processes of neo-industrial modernisation of regional industrial and economic complexes. The article presents the development of tools for the analysis of the effectiveness of state and local economic policy measures, visualisation and analysis of planned and actual values of key indicators of neo-industrialisation. The authors propose a strategic approach to the interaction between the state, business and scientific institutions in order to ensure a symbiotic effect for the neo-industrial development of the manufacturing industry.

DIGITAL ECOSYSTEMS AS A DRIVER OF BUSINESS LANDSCAPE TRANSFORMATION IN THE MODERN ECONOMY

Ganna Kolomiyets, Vladуslav Korol, Dmуtro Bilіanskiy — Thu, 13 Mar 2025 00:00:00 +0000

The article defines the features of the ecosystem business model, reveals the importance and role of digital ecosystems in the evolution of the digital economy and sustainable development. The relevance of the study is due to the deployment of exponential technologies (artificial intelligence, the Internet of Things, cloud computing, etc.), which have caused and enabled the formation of digital ecosystems and will contribute to their spread. The purpose of the article is to define the essential features of digital ecosystems as a modern form of business and their role in transforming the business landscape in line with the current challenges of the digital economy. The methodology for studying business ecosystems is based on the key theoretical concepts that formed the basis for their formation, namely: the theory of complex systems, the theory of firm behaviour in quasi-competitive markets, and the theory of competitive co-operation. The methodological basis for the study of the ecosystem business model includes the theory of e-network economy, which focuses on horizontal relationships and spillover effects, and platform theory, which considers the interaction of participants in the process of creating common value. Results. It has been determined that business ecosystems contribute to the creation of a higher level of shared value than participants can obtain individually. The experience of the world's leading international companies shows that their strengthening and growth is driven by the use of an ecosystem model built on digital platforms, services and solutions. Global leaders of the digital economy (Apple, Amazon, Google, etc.) are examples of large digital ecosystems based on the integration of products, services, platforms and partnerships, which ensures their sustainability and ability to adapt to changes. The presence of communities of software developers, service providers, venture capitalists, startups and other participants in ecosystems is important for creating innovations and maintaining competitiveness in the long term. It has been proven that the implementation of ethical and environmental practices is a means of reducing risks and improving the reputation and viability of companies in the current environment. Business ecosystems can mitigate the negative effects of technological growth. Practical implications. It is proved that digital ecosystems play a key role in the development of the circular economy, which is a tool for achieving ESG. The authors identify the imperative directions of influence of digital ecosystems on the expansion of the circular economy. Value/Originality. The following has been further developed: the theory of business models through the definition of the essential features of digital ecosystems; the role of business ecosystems in improving the ESG criterion. Future research could be aimed at studying the institutional support for the development of business ecosystems at the international and national levels.

ECONOMIC GROWTH UNDER THE INFLUENCE OF TECHNICAL AND TECHNOLOGICAL CHANGES OF INDUSTRY 5.0

Kateryna Kraus, Nataliia Kraus, Yuliia Radzikhovska — Thu, 13 Mar 2025 00:00:00 +0000

The purpose of the scientific research is to graphically present and scientifically analyse economic growth under the influence of digital production factors as a result of technical progress, technological improvement and the use of Industry 5.0 tools. The оbject of the scientific research is the ranking of data by world country according to various indices and sub-indices of the "Global Innovation Index 2023: Innovation in the face of uncertainty" of the World Intellectual Property Organisation (WIPO), Geneva, which reflect innovative and scientific and technological activities. They allow for a qualitative comparative analysis of countries and regions in terms of their technological activity and the identification of factors of leadership or lagging. WIPO's analytical materials provide a picture of the current state of innovation and digitisation, allowing for targeted and methodologically substantiated research. Methodology. The study employs a range of methodologies, including a graphical approach to analyse the impact of digital production factors on the production capability curve and economic growth in the country. Additionally, it examines the shift in the position of the production function curve under the influence of technical progress and technological advancement towards Industry 5.0. The comparative method helped to present the evaluation indicators of the Global Innovation Index in terms of country groups by income level. The methods of analysis, synthesis, induction and deduction are used in the presentation of the factors influencing the effectiveness of digital entrepreneurship. The method of concretisation found its manifestation in the development of the author's proposals in the part of finding the driving forces of innovative and digital development of the economy. Results. The paper reveals clear changes and adjustments in the partial priority of using economic growth factors, which are the drivers of economic progress in the 20th–21st centuries. It was possible to present a graphical interpretation of the production possibilities curve and economic growth under the influence of digital production factors; to analyse changes in the position of the production function curve under the influence of technical progress and technological improvement on the path to the formation of Industry 5.0. The Global Innovation Index 2023 is analysed in order to provide an overview of the rankings of countries according to income level in terms of income and sales from intellectual property, high-tech imports and exports. The authors present their vision of the content of the work of the owner of a digital enterprise, and indicate the role that this owner plays. Practical implications. A comprehensive review of the extant literature revealed that the factors conducive to economic growth encompass the expansion of human capital quantity and quality; technological progress, technological quality and digital entrepreneurship; the formation of financial capital and an increase in the volume of its offers; and the augmentation of natural resources quantity and quality. Thus, the drivers of the formation of Industry 5.0 based on digital entrepreneurship, formed under the influence of technical and technological changes, are hyperintelligence, hyperknowledge, hyperinformation and hypercommunication, updated under the influence of economic growth factors. Value/Оriginality. The VII technical and technological system is predicated on creative intelligence. The objective of implementing new technologies and technological enhancement is to facilitate the digitalisation of entrepreneurship and the establishment of a novel virtual reality conducive to expeditious and efficient business operations. Consequently, utilising a dialectical, systematic and graphic approach, the impact of technical and technological progress on the transformations in Industry 5.0 was investigated. This investigation determined the prospective reserve of innovation and digitalisation of entrepreneurship, with a view to achieving economic growth.

THE IMPACT OF CREATIVITY AS A FACTOR OF ECONOMIC DEVELOPMENT ON GDP GROWTH IN EU COUNTRIES

Robert Leščinskij, Olga Iurasova, Jolita Šliogerienė — Thu, 13 Mar 2025 00:00:00 +0000

This study examines the critical role of creativity in economic development and its significant impact on GDP growth within the European Union. Using Principal Component Analysis (PCA), the study evaluates and quantifies the impact of specific indicators of creative development on economic performance. Based on data collected from 28 EU countries and Switzerland, the analysis shows that regions characterised by a higher concentration of creative activity and innovation infrastructure tend to have higher GDP growth. The methodology involves a careful selection, standardisation and evaluation of key variables representing creative development, ensuring consistency in comparisons across countries. PCA allows complex datasets to be distilled into three principal components that together account for 78.33% of the total variance, providing a comprehensive view of the multidimensional nature of creative economic activity. The primary aim of this research is to explore how creativity can act as a driver of sustainable economic growth and to provide practical recommendations for policy makers seeking to maximise this potential. The findings highlight the important role of human capital, cultural vibrancy and the creative industries in fostering regional economic resilience and innovation. Among the factors examined, the number of R&D personnel per million inhabitants emerges as a critical determinant, with a strong positive correlation with GDP per capita. In addition, the share of employees in innovative firms and the presence of design-oriented firms were found to be key drivers of growth, highlighting the importance of fostering creativity and innovation across different sectors of the economy. The study concludes that supporting creative industries, increasing R&D investment and fostering an environment conducive to innovation are essential strategies for increasing GDP growth, even in resource-constrained regions. These findings highlight the need for strong institutional support and targeted policies to develop creative potential and stimulate economic progress. This research advances the understanding of the role of creativity in economic development by providing a structured framework for future analysis. The authors exhort policymakers to employ these insights to devise initiatives that harness creativity as a means to attain long-term economic resilience, innovation, and regional competitiveness in an evolving global economy. The present research prompts future investigation, with a particular focus on the direct impact of creative industries in specific sectors, such as technology or cultural industries, on economic growth and innovation.

ECONOMIC SECURITY OF THE STATE UNDER MARTIAL LAW

Volodymyr Mozharovskyi, Serhii Hodz, Oksana Kolesnyk — Thu, 13 Mar 2025 00:00:00 +0000

The experience of conducting operations (combat actions) during the repulsion of the large-scale armed aggression of the Russian Federation against Ukraine demonstrates the need to increase the combat potential and combat capability of the Armed Forces of Ukraine in order to acquire operational and combat capabilities sufficient to perform the tasks of state defence. The development and acquisition of these capabilities is contingent upon the military-economic potential of the state in question. This potential can be conceptualised as a combination of two distinct yet interrelated dimensions: the economic and military facets. Simultaneously, the preservation (protection) of the military and economic potential of the state largely depends on its Armed Forces, which, as a military formation, are responsible for the defence of Ukraine, protection of its sovereignty, territorial integrity and inviolability, according to the Constitution of Ukraine. This confirms the interconnection of the two components of national security (economic and military). At the same time, the military-economic security of the state should be considered as an integral result of the activities of the military-political leadership of the state, aimed at ensuring armed protection of its interests. The required level of operational (combat) capabilities of the Armed Forces of Ukraine is achieved through a significant set of measures, including measures of resource, primarily logistical, support of troops (forces). The level of logistical support of military formations largely depends on the military and economic potential of the state. However, in peacetime and wartime, the organisation of logistics support for troops (forces) has certain differences, and the main difference is the growing level of military threats to the military-economic potential of the state and the possibility of further escalation of these threats into a military conflict (armed aggression). Accordingly, the level of military threats to the economic security of the state is growing. In order to counteract armed aggression and preserve (protect) the military and economic potential of the state, Ukraine introduced the legal regime of martial law. Nevertheless, as of today, the functioning of relations and activities of the relevant institutions for ensuring the economic and military security of the state under the legal regime of martial law remain unregulated and not balanced within the legal framework. This requires the military and political leadership of the state to take the necessary measures to ensure the required level of military and economic security of the state. Consequently, military science (its branches) faces the need to address the existing problems of economic and military security of the state, in particular, to improve (bring into line) legislation in the field of national security and defence and to develop scientifically based recommendations for increasing the combat capability of the Armed Forces of Ukraine, achieving the required level of their operational and combat capabilities to perform the tasks of state defence. A significant gap in the modern theory of economic security of the state is the lack of a comprehensive approach to the study of the problems of functioning of military-economic security relations and the relevant institutions of the state that regulate them under martial law. The interrelation of economic and military security as components of the national security of the state is only partially traced in existing scientific approaches. The peculiarities of the economic security of the state under martial law (armed aggression) are also considered rather superficially. The dependence of the level of military-economic security of the state on the level of threats to its national security in the military sphere requires scientific substantiation. The purpose of the article is to present the views on the essence and features of economic security of the state under martial law.

IMPLEMENTATION OF AN UPDATED CRM SYSTEM IN THE ACTIVITIES OF A CONSTRUCTION ORGANISATION

Tetyana Oklander, Mykhailo Oklander, Oleh Shcherbyna — Thu, 13 Mar 2025 00:00:00 +0000

In the current unstable political and economic conditions in Ukraine, many construction organisations are experiencing a degree of inconsistency between internal departments, which creates communication difficulties. External communication with clients and business partners is also crucial for the effectiveness of the company. A CRM programme can improve the efficiency of these interactions, meeting the needs of both customers and employees and accelerating the achievement of strategic business goals. The aim of this work is to improve modern methods of implementing CRM systems, to determine their essence and to define their role in the operation of construction and production companies. The use of a modern digital system makes it possible to improve internal and external communication between the company's departments, improve co-operation with partners and potential customers, improve operational records, provide detailed customer analysis, promote strategic planning based on historical activity data, and much more. Together, these improvements strengthen the company's competitive position in the modern Ukrainian construction market. Methodology. This research focused on the development of a strategic action plan to improve the activities of a construction and manufacturing company during its transition to BAS. The main objective of this programme is to automate processes related to interactions with customers at different levels and orientations, and to improve internal communication between departments. The results of the research enabled the creation of a detailed strategic plan for the company's transition to an updated digital programme. Following a thorough preliminary analysis of economic viability, a systematic and staged transition to BAS was meticulously orchestrated. This transition encompasses analytical, accounting, and tax records, while concurrently enabling the parallel operation of the existing software. Significant emphasis was placed on enhancing synchronization and optimising the efficiency of the sales department's operations. Practical іmplications. The updated digital program's augmented capabilities facilitated the development and implementation of pivotal tasks for transitioning activities to BAS across various company departments. This ensured the streamlining of all business processes and enhanced the organisational structure of the construction enterprise. Particular emphasis was placed on configuring synchronization and improving the effectiveness of the sales department. Value/Originality. The use of modern management methods, including digital programmes with advanced technological capabilities, together with adjustments to the company's market policy, effective use of marketing tools and optimisation of all internal business processes, will improve partnerships and bring the company's operations to a fundamentally new level. The proposed changes to the internal business processes of the commercial department will enable sales automation, reduce time, improve the quality of customer service and increase the productivity of internal managers.

PUBLIC ADMINISTRATION OF SETTLEMENT INFRASTRUCTURE IN THE CONTEXT OF DECENTRALISATION: LEGAL FRAMEWORK AND ECONOMIC INSTRUMENTS FOR EFFICIENCY

Svitlana Osaulenko, Ihor Shumak, Zoia Ivantsova — Thu, 13 Mar 2025 00:00:00 +0000

The decentralisation of public administration in Ukraine plays a pivotal role in the development and management of settlement infrastructure. However, the war and financial constraints have significantly impeded the capacity of local authorities to effectively implement infrastructure projects. Ensuring sustainable infrastructure development necessitates a multifaceted approach encompassing legal, economic and human rights-based components. This study aims to analyse the legal foundations and economic instruments that influence the public administration of settlement infrastructure in Ukraine under decentralisation, with a particular emphasis on financial sustainability and international support mechanisms. The research is founded upon a thorough legal and economic analysis, incorporating a review of Ukrainian legislation and international standards, particularly those of the Council of Europe. The study explores the function of local self-government in the public administration of settlement infrastructure, the challenges posed by martial law, and the strategies employed to surmount financial limitations. The findings indicate that international financial assistance, municipal partnerships and cross-border co-operation have become essential to sustain settlement infrastructure projects. The study highlights that despite decentralisation reforms, financial dependence on external funding remains a major challenge. The findings of the study provide valuable insights for policymakers and practitioners by identifying effective economic strategies and legal mechanisms to enhance the resilience of Ukraine's settlement infrastructure. The key recommendations of the study are as follows: first, to strengthen international co-operation; second, to increase financial autonomy at the local level; and third, to integrate human rights-based approaches into infrastructure governance. The research contributes to the broader discourse on decentralisation and sustainable infrastructure management, and offers practical solutions for post-war reconstruction and long-term development in Ukraine.

INTERNATIONAL LEGAL CO-OPERATION IN COMBATING ECONOMIC CRIME

Olena Pasechnyk, Tetiana Fedorovа, Ruslan Biriukov — Thu, 13 Mar 2025 00:00:00 +0000

The subject of the present study is the conceptual, theoretical and methodological research of international legal co-operation in combatting economic crimes on the international, European and state level. Methodology. The research employs a range of general scientific methods, with hermeneutic methods being utilised for the development of the research's conceptual construct and the establishment of the meaning of the terms employed. The analysis and synthesis methods were employed to establish the qualitative parameters of international police co-operation in the prevention and combatting of economic crimes, as well as to determine the methodological principles on which such co-operation is based. The comparative method was used to establish the similarities and differences between legal acts on international, regional and domestic levels. The objective of the present article is twofold: firstly, to provide a comprehensive overview of the various approaches employed in the analysis of international co-operation in the prevention and combatting of economic crime; and secondly, to establish a contemporary theoretical basis for research into the modalities of international co-operation in the aforementioned field. The findings of the study have demonstrated that effective international co-operation of States and their law enforcement authorities in combatting and preventing economic crimes is only possible upon condition of the development of the corresponding legal and institutional framework. Such a framework is to be developed at the international, regional and global levels, which are to be harmonised to achieve a common goal of preventing economic crimes. Conclusion. It has been determined that the establishment of an effective international co-operation mechanism to prevent and combat economic crime is contingent upon the presence of a suitable legal and institutional framework. This framework must be developed through systematic efforts at both domestic and international levels. It is noteworthy that a significant number of international agreements aimed at preventing and combatting various forms of crime, including economic crime, have been concluded during the late XX and early XXI centuries. In a similar vein, the European Union has developed a considerable body of legislation and practice on the matter, with relevant activities being institutionalised by the creation and empowerment of international bodies such as Interpol and Europol. In addition, States have prioritised international efforts in combatting economic crime, as evidenced by the establishment of systems of laws and bylaws directed at the elimination of international economic criminal activities, a notable example of which is Ukraine. It is anticipated that this issue will receive greater attention in the future, including through the promotion of relevant international agreements from the interdepartmental to the interstate level.

IMPACT OF WAR IN UKRAINE ON ECONOMIC GROWTH OF LITHUANIA

Ihor Pistunov, Kseniia Kizilova, Tymur Kosormyhin — Thu, 13 Mar 2025 00:00:00 +0000

The issue of Russia's invasion of Ukraine and its impact on countries' economic growth is critical in today's global landscape. The conflict has caused severe economic disruption, including disruptions to trade routes, investment uncertainty, a decline in the country's GDP, a rise in inflation and a significant increase in unemployment rates, both in Ukraine and in neighbouring countries. The purpose of the article is to analyse the impact of the war in Ukraine on the economic growth of Lithuania, which plays an important role in the sovereignty and territorial integrity of Ukraine, the article covers the data for 2002-2023. In order to find a model of economic growth for Lithuania during the war in Ukraine, the following parameters were analysed: the number of immigrants from Ukraine in Lithuania, Lithuania's military spending, the long-term interest rate, the level of business confidence, Lithuania-Ukraine exports, Lithuania-Russia imports, Ukraine-Lithuania exports, Ukraine-Lithuania imports, foreign direct investment in Lithuania, financial help to Ukraine from Lithuania, renewable energy consumption, unemployment rate, and inflation. The subsequent factors have been selected on the basis of a review of the extant literature and an analysis of the research conducted by foreign and domestic scholars. The analysis of Lithuania's economic growth has been conducted using the Harrod-Domar model, which focuses on investments and savings as a means of increasing economic growth. The hypothesis concerning the factors has been tested using correlation analysis to ascertain the relationship between the dependent and independent variables, and to identify the parameters with the most significant impact on economic growth. A thorough regression analysis reveals a substantial non-linear association between Lithuania's economic growth, its military expenditure, the influx of immigrants from Ukraine, energy consumption and its provision of military assistance to Ukraine. To optimise the model's parameters, an assessment of expert opinions was conducted, utilising linear programming to maximise economic growth in Lithuania. As Lithuania is geographically proximate to both Ukraine and Russia, and has historically maintained robust trade relations with both nations, it is imperative to ascertain the potential ramifications of the war in Ukraine on Lithuania's economic growth. The research findings and the models developed can serve as a valuable analytical framework for the study of other post-Soviet economies, facilitating the evaluation of their economic development in the context of geopolitical conflicts.

LEGAL STATUS AND ACTIVITIES OF BODIES AUTHORISED TO IMPOSE FINANCIAL ADMINISTRATIVE SANCTIONS

Tetiana Kolomoiets, Serhii Kushnir, Ivan Shumeiko — Wed, 19 Mar 2025 00:00:00 +0000

The existence of a system of financial liability measures is a common occurrence in market economies. Despite their considerable motivational potential, financial administrative sanctions constitute a significant interference with human rights. Consequently, their application should be justified and balanced. The present article focuses on the powers of the authorities that apply financial administrative sanctions, as well as the procedure for exercising these powers. The authors identify the legal sources that establish these powers. The paper also considers the involvement of the courts in the system of imposing financial administrative sanctions. The problem of combining the functions of investigation and enforcement in one body is discussed. The authors elucidate the issue of the extent of court intervention in an administrative act on imposition of a financial sanction. The research outlines the approaches to determining the limits of the discretionary powers of the subjects of financial administrative sanctions. The study identifies the range of human rights guarantees that should be provided by the authorities when considering cases for the imposition of financial sanctions. The article highlights the extent of possible interference with human rights during the gathering of evidence that forms the basis for a decision to impose an administrative fine. The authors further posit that the implementation of oral hearings in cases where an individual pleads not guilty holds considerable promise for enhancing the efficacy of administrative financial sanction bodies. The paper examines the issue of the motivation of the decisions taken, including the choice of the amount of the fine. The contributors argue that a decision to impose a fine cannot be enforced immediately and that an appeal should always suspend its enforcement. The present study is founded upon a thoroughgoing investigation of doctrinal sources, and is of a theoretical nature. The conclusions contained in the article may be used to improve legislation and law enforcement practice, and may also form the basis for further research.

THE IMPACT OF SOCIAL MEDIA ON STUDENTS' EFFECTIVE TIME MANAGEMENT

Nana Katsitadze, Natalia Kharadze, Dea Pirtskhalaishvili — Wed, 26 Mar 2025 00:00:00 +0000

The ability to manage time effectively has been demonstrated to have a significant impact on individuals' daily performance and achievements. However, it is important to note that the improper use of social media has the potential to hinder effective time management. The present study focuses on the students of Ivane Javakhishvili Tbilisi State University, Faculty of Economics and Business, and School of Tourism and Hospitality. The survey garnered a total of 908 respondents. The study was undertaken in recognition of the significance of the issue and the challenges that respondents face in this area. The objective was to establish the influence of social media use on respondents' time management. The research results indicate that the surveyed respondents allocate a significant amount of time to social media usage. Due to the study's limitations, further research will be conducted to analyse results from various leading universities in Georgia. The research was conducted using quantitative methods, employing an anonymous questionnaire comprising 44 closed questions. The respondents were permitted to express their opinions at the conclusion of the questionnaire. Quantitative research facilitated the survey of a substantial number of students, thereby enabling the establishment of reasonable recommendations. During the research process the following hypotheses have been developed: Hypothesis 1. Using a time management model (Q18_1) will affect the ability to balance study and leisure (Q21_1); Hypothesis 2. Self-control over smartphones during work/study time (Q 29_1) will significantly affect the ability to balance study and leisure (Q21_1); Hypothesis 3. Spending more than four hours per day online using social media (Q 31) negatively affects work-life balance (Q21_1) and academic performance (Q24_1); Hypothesis 4. Spending more than four hours per day online using social media (Q 31) leads to deviance from plan Q26_1.

DIGITAL TRANSFORMATION AND ECONOMIC GROWTH OF THE ASEAN-6 COUNTRIES

Thi Anh Tuyet Le — Wed, 26 Mar 2025 00:00:00 +0000

This study employs a panel data approach to analyse the impact of digital transformation on economic growth in the ASEAN-6 countries from 2000 to 2023. The research framework delineates economic growth (EG) as the dependent variable, while pivotal independent variables concentrate on diverse dimensions of digital transformation. These include broadband infrastructure (FixB), fixed-line telephony (FixT), Internet access (IV), mobile technology (MB), and ICT-related trade (ICTE, ICTI). Furthermore, the model incorporates several control variables to account for other economic influences, including investment (INV), trade openness (TO), population growth (POP), inflation (INF), urbanisation (Urban), and electricity access (Electric). The utilisation of panel data facilitates the management of unobserved country- and time-specific effects, thereby ensuring a more robust analysis. However, potential econometric issues such as heteroscedasticity and autocorrelation are mitigated through the application of the Generalised Least Squares (GLS) method, which enhances the precision of estimations. A descriptive statistical analysis was conducted to highlight notable variations in economic growth, trade patterns, and digital penetration across the ASEAN-6 region. The average GDP growth rate over the study period was approximately 4.8%, though individual country experiences exhibited significant fluctuations. Internet penetration levels also exhibited substantial differences, ranging from as low as 0.25% to as high as 97.69%, reflecting disparities in technological adoption and infrastructure development. Furthermore, a significant disparity was observed in the domains of high-tech manufacturing and ICT trade, suggesting that the process of digital transformation has occurred in a non-uniform manner across these nations. Preliminary correlation analysis suggests that the primary influence of digital transformation on economic growth stems from infrastructure development and technology adoption rather than direct contributions to GDP. The findings of the regression analysis, as conducted via the Pooled OLS model, suggest a positive and significant relationship between investment (INV) and trade openness (TO) on economic growth. However, it is notable that broadband infrastructure (FixB) appears to exert a negative effect, which is presumably a consequence of the substantial initial investment costs associated with the deployment of digital infrastructure. The findings reveal that other digital transformation indicators, such as mobile technology and Internet penetration, do not demonstrate significant direct effects on economic growth. Furthermore, the OLS model reveals severe multicollinearity issues, necessitating the use of more refined estimation techniques. Diagnostic tests demonstrate that heteroscedasticity does not pose a concern, as substantiated by the White test, while the Wooldridge test detects autocorrelation. Consequently, the employment of Fixed Effects (FEM) or Random Effects (REM) models with clustered standard errors is recommended, as these approaches yield more reliable estimation results. In conclusion, while investment and trade integration emerge as key drivers of economic growth in the ASEAN-6, the economic benefits of digital transformation may require a longer timeframe to materialise. It is therefore vital to enhance investment strategies in digital infrastructure and to address issues of multicollinearity if more accurate estimations are to be obtained and a more complete understanding of the role of digital transformation in economic development to be achieved.

CRIMINAL LAW ASPECTS OF FINANCIAL SECURITY OF A STATE

Andrii Borovyk, Oleksandr Shyra, Oleksandr Kravchenko — Wed, 26 Mar 2025 00:00:00 +0000

The article deals with criminal law aspects of ensuring financial security of the State as a component of national security. The emphasis is placed on key threats to financial security, such as corruption, money laundering, financial fraud and tax evasion. The article defines the role of criminal law in preventing crimes in the financial sector, ensuring the inevitability of punishment and restoring financial losses. It analyses the essence of financial security as a component of national security and determines its relationship with criminal law aspects. The study examines criminal law mechanisms aimed at ensuring financial security, including national legislation and international approaches. This helped to identify problems and gaps in the criminal law regulation of financial security. The criminal law threats to Ukraine's financial security identified by analysing their nature, scope and countermeasures allowed comparing the national experience with the practices of the European Union and the United States with a view to identifying effective approaches and ways to improve the Ukrainian legal system in this area. Ensuring an effective criminal law policy in the area of financial security involves: improving legislation aimed at preventing and combating financial crimes; enhancing the professional training of law enforcement agencies in the area of financial crime investigation; and integrating national crime prevention systems with international mechanisms, including co-operation within international organisations. The establishment of effective mechanisms for monitoring suspicious financial transactions and detecting illegal capital flows is a prerequisite for protecting the financial system. The utilisation of contemporary tools, including artificial intelligence and blockchain technologies, is imperative for the identification of fraudulent schemes, the monitoring of financial transactions, and the automation of risk analysis. Particular attention is paid to the integration of national mechanisms for combating financial crimes with international standards, including the FATF recommendations and the UN Convention against Corruption. The positive experience of Ukraine and the European Union in improving legislation, introducing modern technologies and developing international co-operation has allowed the author to propose ways to improve criminal law measures aimed at strengthening financial security, taking into account current challenges. An effective criminal law policy in the area of financial security should take into account current challenges, including cybercrime and the growth of organised criminal groups in foreign economic activity. Only a comprehensive approach that encompasses legal, economic and international aspects will ensure the necessary level of protection of the state's financial system and contribute to its stability. The study is based on the analysis of statistical data, in particular, the activities of law enforcement agencies of Ukraine in recent years. The conclusions are aimed at proposals for improving criminal law policy to ensure financial stability and maintain confidence in financial institutions.

THE CONCEPT OF REGIONAL TOURISM SYSTEMS IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT

Yuliia Holovchuk, Liudmyla Dybchuk, Oleh Tsilnyk — Wed, 26 Mar 2025 00:00:00 +0000

The study explores the concept of Regional Tourism Systems (RTS) within the framework of sustainable development, emphasising the challenges posed by global instability, technological advances and socio-economic shifts. The research aims to modernise the RTS concept by introducing the RTS 2.0 model, which integrates digital technologies, adaptive management strategies and sustainability principles. Methodology. The present study employs a mixed-methods approach, combining theoretical and empirical research. The theoretical foundations of the study are established through an extensive literature review, which analyses key studies on regional tourism, sustainable tourism, and tourism management models. Empirical investigation is facilitated by case studies, with a particular focus on Ukraine, and these examine the impact of crises such as the pandemic caused by the COVID-19 and the ongoing war on regional tourism systems. A comparative analysis is employed to evaluate the discrepancies between conventional RTS and the proposed RTS 2.0 framework. In addition, data synthesis and trend analysis are utilised to identify the key drivers and barriers to sustainable tourism development. The primary objective of the present study is to analyse, modernise, and propose strategic solutions for developing RTS and ensuring their resilience in the face of global uncertainties. Specifically, the research defines the essential components of RTS and their role in sustainable tourism, examines the impact of instability (political, economic, and environmental) on RTS, develops and proposes RTS 2.0, an updated conceptual framework emphasising digitalisation, community engagement, and sustainability, and offers strategic recommendations for integrating sustainability into RTS while ensuring adaptability to crises. Results. The study finds that traditional RTS models are inadequate to address the dynamic challenges posed by global instability. The RTS 2.0 framework introduces several innovations. First, digitalisation and smart tourism use online platforms, virtual tourism and AI-driven analytics to enhance destination marketing and crisis management. Second, sustainable infrastructure development promotes environmentally friendly accommodation, renewable energy sources and waste management systems in tourism regions. Third, community involvement and local empowerment strengthen the role of local communities in tourism planning and management, and ensure the equitable distribution of economic benefits. Fourth, crisis adaptability establishes risk management frameworks for RTS, allowing for rapid adaptation to political conflicts, pandemics and economic downturns. Finally, holistic branding and destination management promote regional tourism clusters, linking tourist attractions for greater competitiveness and resilience. The study concludes that RTS 2.0 is a necessary evolution in tourism management, combining sustainability, digital innovation and resilience strategies. By adopting adaptive tourism governance, regions can increase their global competitiveness, attract more tourists and sustain economic growth even in times of uncertainty.

PECULIARITIES OF THE LEGAL NATURE OF A JOINT ACTIVITY AGREEMENT IN THE FIELDS OF PUBLIC-PRIVATE PARTNERSHIP AND INNOVATION

Volodymyr Hutsuliak, Andrii Hryniak, Mariana Syhydyn — Wed, 26 Mar 2025 00:00:00 +0000

The subject of the present study is the theoretical, methodological and applied provisions of legal regulation of joint activities and relations in the most economically promising areas, namely public-private partnerships and innovation. Methodology. The research process was informed by established scientific methodologies. Specifically, the dialectical method of cognition proved instrumental in elucidating the essence of the concept of public-private partnership. The analysis performed enabled the determination of the specifics of the legal regulation of contractual relations for the implementation of joint activities in the area of public-private partnerships and innovations. Synthesis was used to determine the legal characteristics of a joint activities agreement in the field of public-private partnership and innovations. Finally, the method of deduction was used to substantiate the feasibility and effectiveness of applying the joint activities agreement structure in the investigated areas. The objective of the present article is to ascertain the particularities of implementing a joint activities agreement for the purpose of regulating legal relations in the most promising socio-economic domains, namely public-private partnerships and innovations. The findings of the research have demonstrated that joint activity agreements have the potential to serve as a pivotal instrument for ensuring expeditious and efficacious collaboration among the various participants involved in the restoration process, particularly those engaged in public and private legal relations. In contexts where traditional business and partnership models may prove challenging or hazardous due to the prevailing conditions of war, the utilisation of joint activities has been shown to mitigate risk and streamline project management by leveraging the resources and expertise of businesses, governments, and international partners. Conclusion. It has been established that the expediency of widespread application of the structure of a joint activities agreement in the field of public-private partnership is obvious, especially in the context of Ukraine's post-war reconstruction and implementation of its European integration aspirations. This contract structure facilitates the effective pooling of resources from both state and private companies, thereby enabling the addressing of complex economic and social challenges. It enables the state to attract investments, innovative technologies and private sector expertise while retaining control over strategic development directions. Consequently, private partners are granted access to substantial state projects, thereby facilitating business development and the creation of new employment opportunities. It has been determined that the effective implementation of innovation activities necessitates not only the presence of progressive ideas and highly qualified scientific potential, but also the existence of adequate legal regulation that ensures the practical realisation of these ideas. In the context of rapid technological changes and high competition in the innovation market, a key instrument for ensuring successful collaboration between government agencies, the private sector and research institutions is the formulation of a joint activities agreement. The establishment of such an agreement facilitates the delineation of the terms of partnership, the distribution of rights and obligations, the financing procedures, and the mechanisms for protecting intellectual property and commercialising scientific achievements.

BIOLOGICAL ASSETS OF ORGANIC PRODUCTION IN THE SYSTEM OF ACCOUNTING CATEGORIES AND CONCEPTS

Yana Ishchenko, Tetiana Mulyk, Olena Zharikova — Wed, 26 Mar 2025 00:00:00 +0000

The present article is dedicated to the pertinent issue of accounting for biological assets in the context of organic production. A critical analysis of extant theoretical approaches to the definition, recognition and valuation of biological assets has been conducted. The research revealed the absence of a proper accounting system for organic production objects, particularly biological assets, both in Ukraine and in international accounting practice. The primary issue identified pertains to the inconsistency of terminology and the definitions of categories employed in accounting, along with their ambiguous interpretation in regulatory acts. The purpose of the present article is to define key terms for the accounting of biological assets, taking into account the specifics of organic agricultural production. The object of research is land and biological assets of organic production. The subject of the study is the theoretical, methodological and practical aspects of accounting for biological assets in organic production. The following methodological approaches were utilised in the study: theoretical analysis (for systematisation of literary and regulatory sources), comparative analysis (for identifying discrepancies and comparing methodologies), systems approach (for identifying biological assets in the accounting system), and generalisation method (for drawing conclusions and defining terminology). An analysis has been conducted of the state and trends of organic production development on a global, European, and Ukrainian scale. It has been established that the positive impact of organic production on the ecosystem is not taken into account by traditional accounting methods. The foundation of the agroecosystem is agricultural land, which is a strategic resource for Ukraine and an indispensable tool for agricultural producers. The specific characteristics of this asset include biological processes and transformations that occur with it and affect its fertility, as well as the absence of a defined useful life and depreciation. Agricultural land constitutes an element of natural capital with the capacity for biological assimilation. The article under discussion herein justifies the necessity to integrate agricultural land into the category of biological assets. The integration of agricultural land into the category of biological assets will facilitate the development of a comprehensive methodology for assessing this type of asset, considering both economic and environmental aspects, including its positive impact on the agroecosystem and the environment. The main results of the study: in order to ensure a unified approach to accounting in organic production, the necessity of developing a separate accounting standard is substantiated. The authors' own definition of the category “biological assets of organic production” is proposed, which takes into account both economic and environmental aspects. The criteria for recognising biological assets of organic production in accounting are determined.

STATE BUDGET IN THE CONTEXT OF A WARTIME ECONOMY AND POST-WAR TRIGGERS FOR ITS RECOVERY

Serhii Petrukha, Dmytro Konovalenko, Nina Petrukha — Wed, 26 Mar 2025 00:00:00 +0000

The purpose of this study is to systematically analyse the functioning of the state budget of Ukraine in the context of the war economy and identify the key triggers of its post-war recovery. The article discusses the current challenges associated with the transformation of the structure of budget expenditures, a significant budget deficit, rising public debt and the need to attract international financial assistance. The wartime period for public finances is characterised by a significant shift in priorities, with the focus on security and defence forces, social support and the restoration of critical infrastructure. This reallocation of resources is a response to the unprecedented challenges faced by the state, but it creates additional risks to financial sustainability in the medium and long term, creating uncertainty about the triggers for post-war economic recovery from the consequences of the Russian-Ukrainian war. The main methods of the study are: quantitative analysis of economic and financial indicators of Ukraine and comparative analysis with other countries that have faced military conflicts. It is determined that the key barriers are the lack of domestic financial resources, high level of external debt and significant debt service costs. The impact of international financial assistance on ensuring macroeconomic stability and prospects for improving the efficiency of its use for resource support for economic recovery are also investigated. The qualitative analysis identified the main social and economic factors that influence the structure of the State Budget in the context of the Russian-Ukrainian war, including demographic changes, internal displacement of the population, the need to support veterans, and other previously unknown or insignificant factors that were inert in the pre-war period. Based on the results of the study, the author proposes a strategic context of triggers for the modernisation of public finances, including: further optimisation of the expenditure structure, improvement of the efficiency of budgetary resources management, introduction of innovative approaches to tax policy, and ensuring transparency in the use of international financial assistance. Particular attention is paid to the adaptation of international experience to Ukrainian realities, including the introduction of mechanisms for monitoring and evaluating the effectiveness of public spending. The practical significance of the study lies in the development of recommendations for improving the efficiency of public budget management in difficult economic conditions. It is determined that post-war reconstruction requires not only financial resources, but also the consolidation of efforts of the government, international partners and civil society. The main challenge is to strike a balance between the short-term needs to finance the security and defence forces and social protection and the long-term goals of sustainable development, which is becoming more inclusive. The authors propose an approach that combines rapid response to wartime challenges with laying the foundations for inclusive economic growth in the future. It is concluded that public finances are a key instrument for economic resilience during war and the basis for its post-war recovery. In particular, strategic management of budgetary resources will minimise the impact of external shocks, promote the development of domestic markets and ensure social stability. Further research in this area will contribute to the development of effective financial planning mechanisms adapted to Ukraine's current challenges and needs. It was also found that the war economy has significantly transformed the structure of Ukraine's state budget, directing major resources to defence and social support, which has led to unprecedented spending growth and budget deficits. At the same time, a sharp increase in public debt, including external debt, has highlighted the country's dependence on international assistance. In the post-war period, economic recovery will largely depend on investments in infrastructure reconstruction, which can become a driver of economic growth and job creation. Achieving financial sustainability requires comprehensive reforms of public financial management, effective use of international support, and stimulation of long-term economic development. In addition, the article emphasises the importance of promoting the use of the frozen assets of the aggressor country, which can become a source of financing for the restoration of Ukraine's infrastructure, helping to reduce the debt burden. The authors highlight the need for further research and integration of international experience in the field of financial stabilisation and development of an inclusive economy, which will help Ukraine to cope with the challenges of post-war recovery.

DIGITALISATION OF THE PUBLIC ADMINISTRATION SYSTEM IN THE CONTEXT OF ECONOMIC AND LEGAL AREAS OF EUROPEAN INTEGRATION

Victoria Savitska — Wed, 26 Mar 2025 00:00:00 +0000

The article examines the concept and essence of the aspects of digitalisation in the field of public administration in the context of economic and legal instruments of influence on the quality and speed of European integration processes. The modern doctrine identifies several main features of the digital transformation of public administration. In Ukraine, significant progress in the development of digital transformation of public administration has been observed since 2016, when the Digital Agenda of Ukraine 2020 programme was developed, which was adapted to the standards of the European Union's Digital Agenda and included plans for the transition to digital transformation of public administration and the Ukrainian economy. The areas of digital development were identified as follows: bridging the digital divide through the development of digital infrastructures; development of digital competencies; implementation of the concept of digital jobs; digitalisation of the real economy (development of Industry 4.0); implementation of digital transformation projects; public safety; education; healthcare; tourism; e-democracy; ecology and environmental protection; urban life (building a smart city); cashless payments; harmonisation with European and global scientific initiatives; and public administration. Among the main characteristics of digitalisation in public administration is the use of digital tools, such as open data, electronic platforms and analytical systems, which facilitates citizens' access to information about the activities of public authorities, thus reducing corruption risks. Digitalisation stimulates the introduction of new technologies such as artificial intelligence, blockchain and big data for forecasting, analysis and management. It is emphasised that in the context of digitalisation, special attention should be paid to cyber protection of citizens' data and state information systems. Therefore, the process of digitalisation in Ukraine is inextricably linked to the harmonisation of digital standards with European ones, which facilitates the country's integration into the EU's digital single market. The authors paid special attention to the role of key elements of e-governance, such as the development of the functionality of the online system "Diia" and the portal "Diia.Business", since the introduction of the Unified Portal of Public Services "Diia" is a significant step in the development of the "digital society". The author identifies four main stages of formation of the system of public administrative e-services in Ukraine. The most popular types of public services that can be accessed through digital technologies today are: 1) SRCSA services (state registration of civil status acts); 2) registration of an individual entrepreneur; 3) accruals for e-pensions; 4) electronic driver's office; 5) e-HELSI (doctor's appointment, medical record, e-prescriptions and treatment plan); 6) state land cadastre, etc. In the process of digitalising public administration, an important aspect is to simplify and accelerate procedures and mechanisms for making and implementing government decisions. This helps to reduce bureaucratic barriers and make processes more transparent and efficient. Digital technologies enable public services to respond more quickly to the needs of citizens and improve the quality of services provided. An important aspect of digital transformation is also increasing the accessibility of public services for different segments of the population, including those with limited physical or information mobility. Thus, the author has formed and confirmed the hypothesis that digitalisation is a strategic direction of public administration reform, and it really allows for qualitative changes in management processes, adaptation to modern challenges and increased public trust in state institutions, despite the most difficult challenges that Ukraine has been facing over the past three years.

ASSESSMENT OF THE INVESTMENT ATTRACTIVENESS OF THE UKRAINIAN LOTTERY MARKET FOR FOREIGN LOTTERY OPERATORS IN THE CONTEXT OF RECENT LEGISLATIVE CHANGES

Zoriana Toporetska, Mykola Pohoretskyi, Volodymyr Vazhynskyi — Wed, 26 Mar 2025 00:00:00 +0000

The lottery market has always been interesting for investors, because unlike the gambling business, the lottery business is always socially responsible and socially useful. For a long time, Ukraine had a state monopoly on the lottery market, which excluded foreign investors from launching and conducting lotteries in Ukraine. However, in early 2025, a law came into force that opened up the possibility for investors to obtain this right. The article is aimed at an economic assessment of the lottery market in Ukraine, analysis and comparison of the Ukrainian legislation regulating the activities related to the issuance and conduct of lotteries, and calculation of costs and benefits of a foreign lottery operator as a foreign investor in case of making a decision to conduct lotteries in Ukraine. Currently, the lottery market is divided among three lottery operators that received their licences before 2012. The authors have studied the economic indicators of the lottery market for the period 2020-2023 and found that, despite high market turnover, lottery operators showed small revenues from this activity. After assessing the costs of setting up a business in Ukraine, the authors conclude that, given the current indicators, a foreign investor is unlikely to be able to return the investment in 10 years (the term of the licence to issue and conduct lotteries). Therefore, the organisation of interstate lotteries jointly with lottery operators in Ukraine seems to be a more promising area for investment. Such lotteries have already gained popularity in Europe as they offer significantly higher prizes than national lotteries. The organisation of such lotteries does not require significant investor costs, as they will be conducted on the existing material and technical base of national lottery operators in Ukraine. The introduction of such lotteries is seen as promising for raising funds for the post-war recovery and reconstruction of Ukraine.

THE ROLE OF LOCAL AUTHORITY IN THE FUNDING AND ADMINISTRATIVE-LEGAL PROTECTION OF CULTURAL HERITAGE

Andrii Falkovskyi, Andrii Tarasov — Wed, 26 Mar 2025 00:00:00 +0000

The preservation of cultural heritage is a primary area of activity for local authorities, as territorial communities (hromadas) are responsible for financing, administering, and legally protecting historical and cultural sites.This article explores the main aspects of funding cultural heritage preservation at the local community level, identifying funding sources, budget planning mechanisms, and the challenges municipalities face in implementing protective measures. The article goes on to consider in particular budgetary financing, grant support, public-private partnerships, and patronage as mechanisms for attracting funds for the restoration and conservation of historical sites. The article furthermore examines the administrative and legal mechanisms for protecting cultural heritage, including legal regulations, control procedures, sanction mechanisms, and organisational measures. An analysis of the current Ukrainian legislation in the field of cultural heritage protection allows for the identification of its strengths and weaknesses and the outlining of ways to improve legal regulation at the local level. Special attention is given to the issues of ineffective monitoring of cultural heritage sites, weak institutional capacity of local authorities, and the lack of adequate control over compliance with preservation regimes. The study demonstrates that effective management in the context of cultural heritage protection necessitates a comprehensive approach, encompassing financial support, explicit legal regulation, active collaboration between local authorities, the public, and businesses, in addition to the implementation of international heritage protection standards. The measures proposed in the article are designed to enhance the effectiveness of local authorities in cultural heritage preservation, including augmented funding, enhanced monitoring and control systems, and the engagement of community initiatives and international resources. The findings of this study can be used to develop cultural heritage preservation strategies at the local community level and improve legislation in the field of historical and cultural site protection. The conclusions confirm the need for an integrated approach that combines economic, legal, and administrative measures to establish an effective system for protecting cultural heritage in the context of decentralisation and growing contemporary challenges.

IMPROVING THE SANCTIONS OF THE NORMS ESTABLISHING CRIMINAL LIABILITY FOR CRIMINAL OFFENCES AGAINST PROPERTY AS A MEASURE TO ENSURE ECONOMIC SECURITY OF UKRAINE

Vasyl Farynnyk, Serhii Vitvitskyi, Tetiana Ponomarova — Wed, 26 Mar 2025 00:00:00 +0000

The purpose of the present article is twofold: firstly, to define the essence and content of property penalties under the criminal legislation of Ukraine; secondly, to analyse and summarise the trends in the development of penalty policy under martial law. In addition, the article considers the "economy" of criminal offences against property and the penalties provided for their commission. A scientific discussion on the problem of improving the types of penalties for criminal offences against property and their importance for the economic development of the state is also presented. It is imperative to ascertain appropriate sanctions for criminal infractions, constituting a pivotal responsibility for the legislator in order to forestall an incongruity between the societal threat posed by an act and the nature and extent of the imposed retribution. A methodical examination of the sanctions framework for "simple" property-related criminal infractions reveals that, with the exception of specific (predominantly egocentric and aggressive) acts, the legislator has opted to prescribe penalties in the form of financial penalties and corrective labour. This approach can be explained by the desire to make an offence economically unprofitable for the person committing it. It is emphasised that a fine, as well as correctional labour (which, since the adoption of the current Criminal Code, has also been considered by scientists as a possible type of special fine), are more economically advantageous for the state for the following reasons: 1) no costs for the execution of the sentence by the convicted person; 2) partially free labour services; 3) receipt of funds for the budget; 4) realisation of the purpose of punishment through the restriction of property rights. Results. It is noted that under the conditions of martial law, the approach to the classification of property offences was significantly changed, which, due to the not fully balanced disposition of the relevant parts of the amended articles, created an artificial basis for the non-alternative application of punishment in the form of imprisonment to offenders; ignoring the clarifications of the Supreme Court leads to the continuation of the practice of applying sanctions under Article 185(4) of the Criminal Code of Ukraine to persons who have committed simple thefts and imposing a sentence of imprisonment. Such an approach should be considered inappropriate, firstly, given that the purpose of punishment of the accused is not achieved; secondly, in case of application of Article 185(1) of the Criminal Code of Ukraine, a person could be sentenced to a fine of one thousand to three thousand tax-free minimum incomes, community service for a term of eighty to two hundred and forty hours, or correctional labour for a term of up to two years, which is economically beneficial for the state. While the provisions of Article 69 of the Ukrainian Criminal Code may be applied to such individuals under certain circumstances and for specific types of property, analysis of court practice indicates that this approach is employed less frequently than exemption from punishment with probation. The authors argue that it is expedient to consider the possibility of establishing an alternative form of punishment for offences against property (a fine and correctional labour), if this is consistent with the general principles of criminal policy. It is advisable to impose imprisonment for property offences committed under martial law only if such conditions contribute to the commission of a socially dangerous act.