Economics of Development
ISSN / EISSN : 1683-1942 / 2304-6155
Current Publisher: LLC CPC Business Perspectives (10.21511)
Total articles ≅ 54
Latest articles in this journal
Economics of Development, Volume 19, pp 48-60; doi:10.21511/ed.19(4).2020.05
Non-bank financial institutions play an important role in the non-bank financial service markets expressed in expanding the access to financial services for individuals and legal entities. The non-bank financial service markets demonstrate their performance peculiarities in the pre-crisis and post-crisis periods that bring up to date the need to form a scientific presentation of their development trends. Therefore, it is necessary to provide scientific background and identify the regress and progress processes in the non-bank financial service markets. The research aim is to develop an analytical approach to determining the peculiarities of the development processes in the non-bank financial service markets. The research assesses the key indicators of the non-bank financial service markets in terms of quantity by dividing a set of values into groups by cluster analysis and multidimensional object clustering by a system of indicators, as well as identifying the progress and regress patterns in the non-bank financial service markets. Achieving the research results requires taking into account the above-mentioned objectives fulfilled in seven stages. The research results reflect the influence on the financial service markets exerted by the governmental regulation policy and the consumer protection level in these markets.
Economics of Development, Volume 19, pp 35-47; doi:10.21511/ed.19(4).2020.04
The goal of the paper is to disclose the links between the dynamics of macroeconomic indicators and the level of bank loan rates based on international and Ukrainian practice. On the basis of the previous analysis, the paper also aims to identify the key trends in the formation of loan prices in the long run and identify problematic issues related to bank loan rates. The main characteristics of bank lending rates in Ukraine are: a) their high rates; b) sharp changes in the weighted average bank loan rates from year to year; c) higher loan rates for households compared to the cost of bank loans for businesses; d) higher bank loan rates for short- and medium-term loans versus long-term ones; e) lower rates on loans in foreign currency compared to the loans in hryvnia; and f) high share of non-performing loans to households and businesses in bank portfolios. In the context of world and Ukrainian practice, the paper demonstrates the reverse effect between macroeconomic indicators such as GDP per capita, the ratio of loans to GDP, the ease of doing business index and bank loan rates. The article also demonstrates a direct relationship between the dynamics of inflation rate in the country, the dynamics of non-performing bank loans and their rates.
Economics of Development, Volume 19, pp 24-34; doi:10.21511/ed.19(4).2020.03
The study focuses on the need to update tools for making local governance decisions using modern information technology in an environment of unpredictability added by the pandemic. Policy formulation by the authorities, especially local governments, is faced with the demand for sustainable development due to the obstacles and risks that have arisen. The purpose of the paper was to create a model for an intelligent information system to rank input qualitative information as an object in accordance with sustainability criteria for determining the local government’s policy on budgetary support for entrepreneurial activity. Fuzzy informatics methods used in soft computing based on fuzzy logic improve estimation potential. The activity in сommunity-based tourism (CBT) was chosen as a basis for simulating the “Intelligent Ranking System” for local budgeting. In the paper, the system ranks four factors of sustainability according to the importance of local government activity by nine criteria, whose fuzzy values are calculated based on expert judgments within the framework of six linguistic variations. Simulation of future directions of budgeting was developed using unified answers from the example of India for applying in local tourism. The basis of the system matrix is formed through the subsequent analysis of deviations from the limiting variations of the maximum positive and maximum negative impressions of experts. The model of this ranking system will be useful for service-oriented activities where consumer impressions are an important development requirement.
Economics of Development, Volume 19, pp 12-23; doi:10.21511/ed.19(4).2020.02
The work is focused on solving a set of problems related to the functioning of the enterprise (firm) in a competitive market environment. The stability of the firm in market conditions is determined by the ability to optimally manage available resources, effective planning for timely promotion of new products, the ability to adequately respond to challenges posed by sudden changes in market conditions. An important factor in achieving economic stability of the enterprise is the presence of the internal concept of self-development, which combines two main functions - marketing and management system (management). In this article the methodology of economic and mathematical modeling of a market condition of firm as process of interaction of functions of marketing and management has received the further development. A model is proposed, which is built in line with the paradigm of economic synergetics and is a system of two nonlinear ordinary differential equations. It is proved that in this situation the classical linear principle of superposition loses its relevance and does not allow the application of the traditional apparatus of econometric analysis. Therefore, the most important for the implementation of the practice of economic forecasting is the construction of areas of stability of the equilibrium of the firm. According to the results of the study, the emphasis is placed on the need to develop criteria for the proximity of system parameters to the dangerous limits of loss of stability by the firm, during the transition through which the economic system changes its dynamic mode catastrophically. A key place in the work is given to determining the parameters of cyclic processes, indicating the amplitude, frequency and nature of the stability of periodic trajectories. The presented results of numerical modeling have practical value and can be used for the analysis and forecasting of parameters at separate stages of the corresponding periodic modes of functioning of the enterprises with various types of stability.
Economics of Development, Volume 19, pp 1-11; doi:10.21511/ed.19(4).2020.01
Current trends in the socio-economic development of the world community have predetermined a close relationship between the parameters of the dynamics of national economies and their structural proportions. Changes in the quantitative proportions and the qualitative state of the world economy as a system determine the trend in the dynamics of the sectoral structure of the national economy. Despite the post-industrial nature of the development of countries with market economies, the source of their structural changes remains domestic economic growth, which is caused by the redistribution of capital and labor in high-tech manufacturing industries. Therefore, the purpose of this study is to formulate a general scheme for the correct assessment of the secondary sector of the Ukrainian economy based on the possibility of using analytical generalizations. The object of research is the structure of the types of activities that form the secondary sector of the national economy. The dynamics of this sector is largely determined by price characteristics. Therefore, in the analysis of reproduction processes, structural proportions associated with different price elasticities are taken into account. Since the basis for the formation of the price of products is the cost of their production, and the quantitative proportions of the economy determine the setting of new strategic goals, the article traces the dynamics of the relationship of zones and states of balanced indicators that reflect the activities of an industrial group as one of the forms of business organization. Reduction of dynamics indicators to one base allows them to be compared at all levels of generalization of data and to track trends that more accurately reflect the real state of the secondary sector of the national economy.
Economics of Development, Volume 19, pp 44-50; doi:10.21511/ed.19(3).2020.05
The question of the essence of the main tools of integrated marketing communications in the activity of banks of Ukraine is investigated. Their introduction in the management of Ukrainian banks is becoming relevant nowadays. Influence of such factors as intensification of competition; penetration of foreign banks into the Ukrainian market; expansion of the scope of banks’ activities determine the search for effective tools of integrated marketing communications. The purpose of the study is to substantiate and systematize theoretical and methodological approaches to the application of the main tools of integrated marketing communications of banks. The object of research is main tools of integrated marketing communications in the activities of banks. The theoretical basis of the study is the theories and marketing concepts of scientists. The results of the study allowed to determine the essence of such concepts as «marketing tools», «tools», «tools of marketing communications». The main tools of integrated marketing communications of banks as the most effective tools in modern market conditions are highlighted. Their use plays an important role in forming a positive image of the bank. Features of application of the main tools of integrated marketing communications for promotion of banking products and provision of banking services are considered.
Economics of Development, Volume 19, pp 19-31; doi:10.21511/ed.19(3).2020.03
The study assesses the impact of tariff reductions on fluctuations in customs revenues in Vietnam. The collection of research data was based on the official sources, namely the Government’s Web Portal and the World Bank’s website, and took place between 2002 and 2017. This paper uses the LASSO (Least Absolute Shrinkage and Selection Operator) linear regression model to estimate and predict the relationship of data series, thereby drawing a regression equation to consider the impact of various factors on customs revenues. The results have proven that tariff reductions have no negative impact on customs revenues. When tariffs are reduced, import turnover increases, the level of compliance with tax laws by import-export enterprises increases, and smuggling and trade fraud decrease. Based on these conclusions, the paper proposes several policies aimed at ensuring future customs revenues in Vietnam. As follows from the findings provided below, in order to ensure customs revenues, the Vietnamese Government should introduce appropriate policies to improve the efficiency of customs management in Vietnam; envisage accurate planning and reasonable investment for the customs office in terms of facilities and human resources; establish reasonable non-tariff barriers to prevent fraud and abuse causing losses in customs revenues.
Economics of Development, Volume 19, pp 32-43; doi:10.21511/ed.19(3).2020.04
The paper concentrates on the analysis of inward and outward FDI in the BSEC countries, their structuring by countries of origin and destination, and how the investment climate (in particular economic freedom and economic development) affects the actual FDI influx in the region. The BSEC countries became considerably attractive for FDI at the beginning of the 2000s, and now they receive about 4% of the world FDI. All the BSEC countries are net recipients of FDI, but some of them also actively invest abroad. Most FDI to the region originates in Europe. FDI is the most important for several small BSEC economies, especially in some periods when they made a significant contribution to capital formation. Despite a temporary increase in imports, FDI also helped to stabilize the balance of payments. Most BSEC countries usually outperform average countries worldwide by trade freedom, low tax burden, fiscal health, financial freedom, property rights, and low inflation. However, this group of countries is quite diverse by particular indicators. Corruption and excessive regulations often act as the drawbacks for the investment climate. The overall economic freedom and low tax burden are the strongest determinants of inward FDI to the BSEC countries. Improving the overall economic freedom, protecting property rights, and better control over government spending are the most crucial for stimulating economic growth. Economic growth and trade freedom are less important factors for FDI.
Economics of Development, Volume 19, pp 12-18; doi:10.21511/ed.19(3).2020.02
This research paper aims to understand all the factors preventing micro, small and medium enterprises from growing despite their great potential, the possible existence of any internal or domestic differences in the way the entrepreneurs from various Indian communities approach business. The question remains whether there are any external or domestic differences in their entrepreneurial orientations. The work also presents some policy-based suggestions to solve such issues that hinder the magnification potential of MSME units. The MSME units offer jobs to more than seven people. However, they do not grow because of many difficulties discussed in this paper. Due to the lack of opportunities, MSMEs are unable to attract foreign investments. MSMEs can stop the migration of young people coming from rural areas to urban cities if MSMEs get developed. MSMEs represent a high-priority sector of the growing and developing economy. Therefore, we need to focus on this sector to transform developing India into a developed country. This paper is an attempt to analyze the reasons for the difficulties of MSMEs.
Economics of Development, Volume 19, pp 1-11; doi:10.21511/ed.19(3).2020.01
The unpredictability of the development of the Ukrainian economy in the world economic space requires continuous improvement of the financial security management policy of business entities. The use of controlling mechanisms to ensure the necessary level of financial security enables the stable development and competitiveness of enterprises. The article highlights the conceptual aspects of ensuring the enterprise’s financial security using controlling mechanisms. The concept of control¬ling within the enterprise’s financial security is considered. An assessment of the enterprise’s financial security in the instrument-making industry of the engineering complex of Ukraine was made using an integrated safety indicator using taxonomic analysis techniques. It is noted that to ensure stable functioning and development of the enterprise, it is necessary to identify factors (threats) that lead to the loss of the proper level of enterprise’s financial security. To assess the impact of financial condi¬tion indicators on the level of effectiveness of financial safety management in engineering enterprises, a multivariate statistical analysis of correlation relationships was carried out and factor loads were calculated. It is proposed to organize the formation of a controlling system with an emphasis on ensuring an adequate level of enterprise’s financial security. The use of the proposed developments in the activities of the enterprises of the instrument-making industry allows increasing the efficiency of their functioning and to put the existing system of ensuring financial security to a new level.