ii i: 439
UDC 330.101
P E T R O   E S H C H E N K O, 
Professor, Doctor of Econ. Sci.,
Scientific Consultant of the Department of Economic Sociology
 Institute of Sociology of the NAS of Ukraine
Eshchenko Petr, 2018;
The role of economic policy based on the neoliberal theory in depression of Ukraines economy is considered. It is proved that in Ukraine a plutocratic system has been formed, the basis of which is interpenetrating and mutually complementary interests of subjects of criminal economy and officials of power structures of all levels. Instead of the promised economy of general welfare and equality, the economy of absurdity and paradoxes is reproduced in society. Ukraines economy, once one of the most developed economies in the world, turned out to be the most backward in Europe, its people the poorest, and its oligarchs the richest (per US$100 thousand of GDP) in the world. There is no doubt that the reproduced system is unnatural and leads our society to a disaster. It is substantiated that Ukraine needs a decisive turn to a fundamentally new way of life, and consequently to a change in the socio-economic structure of society. The answer to the existing problems and contradictions is to find a new system of theoretical knowledge, what is inherent in science (including social one).
According to the author, to ensure the transition from depression to the growth of the national economy, our country needs to change the model of the market economy, with an emphasis on domestic economic development with a significant expansion of domestic demand, increased consumption and investment. This will contribute to economic sovereignty of the country and increase its export opportunities. An important place in this process should be given to the comprehensive plan for radical reconstruction of the national economy, with an emphasis on the re-industrialization of all spheres of the economy, rational allocation of productive forces and retraining of workers in accordance with the requirements of ITD. To do this, it is necessary to develop a long-term program of strategic development of the country, which should be based on the national interests.
Keywords: economic crisis, neoliberal theory, economic policy, social state, model of social protection, post-liberal society, national interests, strategic development program (. 320).
1. Deputaty-ekonomisty o radikalnoi ekonomicheskoi reforme [Deputies-economists about radical economic reform]. Voprosy Ekonomiki Issues of Economy, 1990, No. 9, pp. 314 [in Russian].
2. Heyets V.M. Obshchestvennyi kapital 25: ogosudarstvlennost ili gosudarstvennoe sozidanie? [Social capital 25: establishment of the state or its development?]. Ekonomika Ukrainy Economy of Ukraine, 2016, No. 8, pp. 36 [in Russian].
3. Kornai J. Put k Svobodnoi Ekonomike [Road to a Free Economy]. Moscow, Ekonomika, 1990 [in Russian].
4. Eshchenko P.S., Samko N.G. Finansializatsiya u vodoverti globalnoi ekonomiky [Financialization in the maelstrom of the global economy]. Kyiv, Znannya Ukrainy, 2016 [in Ukrainian].
5. Rifkin J. Tretya Promyshlennaya Revolyutsiya: Kak Gorizontalnye Vzaimodeistviya Menyayut Energetiku, Ekonomiku i Mir v Tselom [The Third Industrial Revolution: How Lateral Power is Transforming Energy, the Economy, and the World]. Moscow, Alpina non-fikshn, 2014 [in Russian].
6. Kolodko Grzegorz W. Ot ideologii neoliberalizma k novomy pragmatizmu [From the ideology of neoliberalism to a new pragmatism]. Ekonomika Ukrainy Economy of Ukraine, 2010, No. 9, pp. 411 [in Russian].
7. Evans J., Coats D. Exiting from the crisis: towards a model for more equitable and sustainable growth. International Politics and Society, 2011, No. 2, pp. 2231.
8. Greenspan A. Epokha Potryasenii: Problemy i Perspektivy Mirovoi Finansovoi Sistemy [The Age of Turbulence: Adventures in a New World]. Moscow, United Press Ltd., 2011 [in Russian].
9. Salin P. Vernutsya k Kapitalizmu, chtoby Izbezhat Krizisov [Revenir au Capitalisme, pour Eviter les Crises]. Moscow, Gaidar Institute PH, 2015 [in Russian]. 
10. Amin S. Ending the Crisis of Capitalism or Ending Capitalism? Cape Town, Pambazuka Press, 2011.
11. Rueschemeyer D., Evans P. Gosudarstvo i Ekonomicheskie Preobrazovaniya: k Analizu Uslovii Effektivnogo Gosudarstvennogo Vmeshatelstva, v: Klassika Novoi Ekonomicheskoi Sotsiologii [State and Economic Transformation: to Analyze the Conditions for Effective State Intervention, in: Classics of the New Economic Sociology]. V.V. Radaev, G.B. Yudina (Eds.). Moscow, PH of HSE, 2014, pp. 192233 [in Russian].
12. Dofsma W. Provaly Gosudarstva. Obshchestvo, Rynki i Pravila [Government Failure: Society, Markets and Rules]. D. Kadochnikov (Ed.). Moscow, Gaidar Institute PH, 2017 [in Russian].
13. Maull H.W. World politics in turbulence. International Politics and Society, 2011, No. 1, pp. 1125.
14. Antropov V. Modeli sotsialnoi zashchity v stranakh ES [Models of social protection in the EU countries]. Mirovaya ekonomika i mezhdunarodnye otnosheniya World Economy and International Relations, 2005, No. 11, pp. 7077 [in Russian].
15. Zveryakov M.I. Uroki rynochnoi transformatsii v Ukraine [Lessons of the market transformation in Ukraine]. Ekonomika Ukrainy Economy of Ukraine, 2016, No. 8, pp. 725 [in Russian].


UDC 336.143.2

Y U R I I   R A D I O N O V,
Cand. of Econ. Sci., 
Head of the Department for Adaptation and Implementation of International Standards,
Monitoring and Analysis in the Sphere of the State Financial Control,
Accounting Chamber of Ukraine,
Radionov Yurii, 2018;


The author examines the state of implementation of the program-target method into the budget system of Ukraine. It is noted that despite the existing legislative and regulatory framework, the actual application of this method has certain shortcomings. The reason is that participants in the budget process do not always adhere to provisions of the Budget Code of Ukraine and other regulatory requirements, for example, concerning the timely approval and completeness of information in the passports of budget programs. Besides, the objectives of the budget program and its main tasks are not always properly determined, which reduces the ideology of the program-target method and makes it impossible to exercise control over effective use of budget funds. 
A hypothesis is advanced that the main reasons for the incomplete implementation of the program-target method are imperfection of existing economic institutions, unpredictable budgetary policies and quite frequent changes in strategic objectives. In this regard, there is a need to reform the budget system and establish new financial and economic institutions. These new institutions should take an active part in shaping the budget, identify priorities and fully meet the current needs of citizens.
Given the difficult socio-economic situation in the country, the program-target method is justifiably applicable. Therefore, when forming the budget, attention is to be focused on the need to: analyze the current problems of the economy and social sphere; apply an integrated approach to solving the problems; determine clear priorities; and focus the fund managers on the effectiveness of using the limited budgetary resources. The allocation of funds from the budget for a specific purpose and their effective use would contribute to stabilization of the financial system and sustainable dynamics of the countrys socio-economic development.
Keywords: program-target method, budget, budget funds, efficiency of using the budget funds, institution (. 2138).
1. Bilopolska V.M., Churikova K.O. Stratehiya Innovatsiinoho Upravlinnya Resursamy Byudzhetu Rehionu [Strategy of Innovation Management of Budget Resources of a Region]. P.V. Egorov (Ed.). Donetsk, East PH Ltd., 2014 [in Ukrainian].
2. Kazyuk Ya.M. Mekhanizmy Formuvannya ta Realizatsii Derzhavnoho Upravlinnya Byudzhetnymy Resursamy na Mistsevomu Rivni [The Mechanisms for the Formation and Implementation of the State Budget Resources Management at Local Level]. Kherson, PE Vyshemyrskyi V.S., 2014 [in Ukrainian].
3. Klets L.E. Byudzhetnyi Menedzhment [Budget Management]. Kyiv, Center for Educational Literature, 2007 [in Ukrainian].
4. Lysyak L.V., Romenska K.M. Efektyvnist Vykorystannya Koshtiv Mistsevykh Byudzhetiv Ukrainy [Efficiency of Use of Funds of Local Budgets of Ukraine]. Dnipropetrovsk, DSAF, 2015 [in Ukrainian].
5. Fedosov V., Oparin V., Safonova L. et al. Byudzhetnyi Menedzhment [Budget Management]. V. Fedosov (Ed.). Kyiv, KNEU, 2004 [in Ukrainian].
6. Ogon Ts.G. Programno-tsilovyi metod ta efektyvnist byudzhetnykh program [The program-target method and efficiency of budget programs]. Finansy Ukrainy Finance of Ukraine, 2009, No. 7, pp. 2029 [in Ukrainian].
7. Stankus T. Programno-Tsilovyi Metod u Byudzhetnomu Protsesi na Rivni Mistsevykh Byudzhetiv [Program-Target Method in the Budget Process at the Level of Local Budgets]. Kharkiv, Faktor, 2017 [in Ukrainian].
8. Baranova V.G., Vasyutynska L.A., Slatvynska M.O., Dubovyk O.Yu. et al. Byudzhetna Systema Ukrainy: Problemni Pytannya [Budget System of Ukraine: Problem Issues]. V.G. Baranova (Ed.). Odesa, AUOI UOIU Atlant, 2013 [in Ukrainian].
9. Savchuk N.V. Byudzhetni priorytety demokratychnoho suspilstva: svitova teoriya i praktyka [Budgetary priorities of a democratic society: world theory and practice]. Extended abstract of Doctors thesis. Kyiv, 2015 [in Ukrainian].
10. Zubenko V.V., Samchynska I.V., Shapoval T.A. et al. Innovatsiini Praktyky: Finansovyi Menedzhment na Mistsevomu Rivni Pidsumky 2014 roku [Innovative Practices: Financial Management at the Local Level the Results of 2014]. Kyiv, Nora-Druk, 2015 [in Ukrainian].
11. Kusminchuk N.V. Derzhavne rehulyuvannya rozvytku rehionu finansovo-byudzhetnymy instrumentamy [The state regulation of regions development by financial and budgetary instruments]. Extended abstract of Doctors thesis. Kharkiv, 2013 [in Ukrainian].
12. Veblen T. Teoriya Prazdnogo Klassa [The Theory of the Leisure Class: An Economic Study of Institutions]. Moscow, Progress, 1984 [in Russian].
13. Varnalii Z.S., Bugai T.V., Onyshchenko S.V. Byudzhetnyi Protses v Ukraini: Stan ta Problemy Instytutsiinoho Zabezpechennya [Budget Process in Ukraine: Status and Problems of Institutional Support]. Poltava, PoltNTU, 2014 [in Ukrainian].
14. Glushchenko V.V., Lavryk O.L. et al. Finansovo-Ekonomichna Bezpeka Subektiv Hospodaryuvannya v Umovakh Detsentralizatsii v Ukraini [Financial and Economic Security of Business Entities in Conditions of Decentralization in Ukraine]. V.V.Glushchenko (Ed.). Kharkiv, V.N.Karazin Kharkiv National University, 2014 [in Ukrainian].

UDC 336.76
I G O R   K R A V C H U K,
Associate Professor, Cand. of Econ. Sci.,
Doctoral student of Department of Banking Management and Accounting,
Ternopl National Economic University
Kravchuk Igor, 2018;

Market of negotiable financial instruments is an immanent component of the financial system and is in a two-way relationship with other financial institutions and real sector of the economy in terms of ensuring its stable functioning. Possible market shocks can adversely affect state of the economy; therefore regulators should carry out constant market surveillance to detect and prevent early possible market violations, by calculating (in particular) the composite stress index.
To construct a composite index, correlation analysis, generalized autoregressive conditional heteroscedasticity model, standardization based on the integral distribution function, seasonal adjustment and determination of a long-term trend based on filtering are used.
It is proposed to calculate the stress index of Ukraines market of negotiable financial instruments on the basis of market data by balanced averaging of the following sub-indices: (i) stocks (UX stock yield volatility, CMAX indicator, market efficiency coefficient); (ii) debt securities (sovereign spread and CDS spread); and (iii) derivatives (indicator of the change in the number of open futures positions for the UX stock). Aforementioned were standardized using the integral distribution function.
The authors analysis of the proposed composite stress index shows that dominant factors affecting the situation in Ukraines market of securities and derivatives are intra-national ones, which have become dominant since 2014. At present, the stress index of Ukraines market of negotiable financial instruments is still of little importance to reflect economic situation in the state, given weak development of the market and its meager role for financing and reflecting the corporate activity.
Keywords: market of negotiable financial instruments, financial stress index, volatility, market liquidity, securities, derivatives (.3949).
1. Illing M., Liu Y. An index of financial stress for Canada. Bank of Canada Working Paper 2003-14, 2003.
2. Balakrishnan R., Danninger S., Elekdag S., Tytell I. The transmission of financial stress from advanced to emerging economies. IMF Working Paper No. 133, 2009.
3. Kliesen K., Smith D. Measuring financial market stress. Federal Reserve Bank of St. Louis, Economic Synopses, 2010, No. 2.
4. Lo Duca M., Peltonen T. Macro-financial vulnerabilities and future financial stress. Assessing systemic risk and predicting systemic events. ECB Working Paper Series No. 1311, 2011.
5. Slingenberg J., de Haan J. Forecasting financial stress. DNB Working Paper No. 292, 2011.
6. Cardarelli R., Elekdag S., Lall S. Financial stress and economic contractions. Journal of Financial Stability, 2011, No. 7, pp. 7897.
7. Park C.-Y., Mercado R. Determinants of financial stress in emerging market economies. ADB Economics Working Paper Series No. 356, 2013.
8. Louzis D., Vouldis A. A financial systemic stress index for Greece. ECB Working Paper Series No. 1563, 2013. 
9. Oet M., Dooley J., Ong S. The financial stress index: identification of systemic risk conditions. Risks, 2015, No. 3, pp. 420444.
10. Vermeulen R., Hoeberichts M., Vašíček B. et al. Financial stress indexes and financial crises. Open Economies Review, 2015, Vol. 26, No. 3, pp. 383406.
11. Holló D., Kremer M., Lo Duca M. CISS a composite indicator of systemic stress in the financial system. ECB Working Paper Series No. 1426, 2012.
12. Duprey T., Klaus B., Peltonen T. Dating systemic financial stress episodes in the EU countries. ECB Working Paper Series No. 1873, 2015.
13. Vdovychenko A., Oros G. Indeks finansovoho stresu: otsinka i zastosuvannya v empirychnykh doslidzhennyakh v Ukraini [Financial stress index: estimation and application in empirical researches in Ukraine]. Zhurnal evropeiskoi ekonomiky Journal of European Economy, 2015, Vol. 14, No. 2, pp. 205224 [in Ukrainian].
14. Tyshchenko l., Csajbok A. Indeks finansovoho stresu dlya Ukrainy [Index of financial stress for Ukraine]. Visnyk Natsionalnoho banku Ukrainy Herald of the National Bank of Ukraine, 2017, No. 240, pp. 514 [in Ukrainian].
15. Kravchuk I. Indeks stresu na rynku zbywalnych instrumentów finansowych w Polsce [Stress index in the negotiable financial instruments market in Poland]. Problemy Zarządzania Management problems, 2017, Vol. 15, No. 1, pp. 193206 [in Polish].
16. Bollerslev T. Generalized autoregressive conditional heteroscedasticity. Journal of Econometrics, 1986, No. 31, pp. 307327.
17. Hasbrouck J., Schwartz R. Liquidity and execution costs in equity markets. Journal of Portfolio Management, 1988, Vol. 14, No. 3, pp. 1016.
18. Kočenda E., Černý A. Elements of Time Series Econometrics: an Applied Approach. Prague, Karolinum Press, Charles University, 2014.
19. Hodrick R., Prescott E. Postwar U.S. business cycles: an empirical investigation. Journal of Money, Credit and Banking, 1997, Vol. 29, No. 1, pp. 116.

UDC 332:338.24:352
R Y N A   S T O R O N Y A N S K A,
Professor, Doctor of Econ. Sci., 
Deputy Director for Research,
Storonyanska Iryna, 2018; 
L I L I Y A   B E N O V S K A,
Cand. of Econ. Sci., Senior Researcher,
Benovska Liliya, 2018; 
Institute of Regional Research named after
M.I. Dolishniy of the NAS Ukraine
Theoretical principles and world experience of the influence of administrative and financial decentralization on spatial development processes are highlighted and modern tendencies and peculiarities of territorial differentiation of development in Ukraine formed under conditions of decentralization are revealed. It is determined that Ukraine failed to avoid the deepening territorial socio-economic differentiation, and the mechanisms of direct regulation and indirect influence turned out to be unable to resolve the problems of the unevenness of the endogenous community development potential and various efficiency of its use. The current state of spatial development in Ukraine is characterized by the following trends: (i) decreased level of interregional differentiation; (ii) increased differentiation at the level of districts under influence of budgetary decentralization mechanisms; (iii) increased level of differentiation of fiscal capacity of territorial communities having direct budgetary relations with the state budget; (iv) increased concentration of economic activity in growth points, which produces a tendency to expand the areas of depressiveness; (v) increased asymmetry between suburban areas and territorial communities remote from major cities; (vi) deepening the gap in financial capacities within the same district between the territorial communities that joined the united territorial communities and those that were not included.
Directions of leveling the risks of strengthening the intraregional differentiation of the development of territorial communities under current conditions are determined as follows:
strengthening the role of the regional level of governance and specifying its functions under conditions of decentralization;
provision of the regional level of governance with financial resources, which will support the implementation of regional economic development projects;
transfer to the basic level of financial resources, which a community can direct to its own economic development, and not only to repair (or develop) social infrastructure or its maintenance;
propagation of development impetuses from cities to surrounding territories on the basis of their transformation into centers of the united territorial communities;
revision of the budgetary equalization mechanisms by including the local budgets revenues from rental payments in calculating the taxability of a territory.
Keywords: asymmetries of economic development, spatial disproportions, administrative and financial decentralization, financial capacity, risks (pp. 5064).
1. Oates W. Fiscal Federalism. New York, Harcourt Brace Jovanovich, 1972.
2. Weingast B.  The economic role of political institutions: market-preserving federalism and economic development. Journal of Law, Economics, and Organization, 1995, No. 11, Iss. 1, pp. 131.
3. McKinnon R. EMU as a device for collective fiscal retrenchment. The American Economic Review, 1997, Vol. 87, No. 2, pp. 227229, available at:
4. Prudhomme R. The dangers of decentralization. The World Bank Research Observer, 1995, Vol. 10, No. 2, pp. 201220, available at:
5. Qian Y., Weingast B. Federalism as a commitment to preserving market incentives. Journal of Economic Perspectives, 1997, Vol. 11, No. 4, pp. 8392, available at: 
6. Qian Y., Roland G. Federalism and the soft budget constraint. The American Economic Review, 1998, Vol. 88, No. 5, pp. 11431162, available at: 
7. Ponomareva M., Zhuravskaya E. Federal Tax Arrears: Liquidity Problems, Federal Subsides, or Regional Protection? Working paper No. 2001/029. Moscow, New Economic School, 2001, available at:
8. Sepúlveda C., Martínez-Vázquez J. The consequences of fiscal decentralization on poverty and income equality. Environment and Planning C: Government and Policy, 2011, Vol. 29, Iss. 2, pp. 321343, available at: .
9. West L., Wong C. Fiscal decentralization and growing regional disparities in rural China: some evidence in the provision of social services. Oxford Review of Economic Policy, 1995, Vol. 11, Iss. 4, pp. 7084.
10. Ravallion M.  Reaching Poor Areas in a Federal System. Policy Research Working Paper No. 1901. Washington, DC, World Bank, 1998, available at:
11. Béland D., Lecours A. Does nationalism trigger welfare-state disintegration? Social policy and territorial mobilization in Belgium and Canada. Environment and Planning C: Government and Policy, 2010, Vol. 28, Iss. 3, pp. 420434, available at: 
12. Rodríguez-Pose A., Ezcurra R. Does decentralization matter for regional disparities? A cross-country analysis. Journal of Economic Geography, 2010, Vol 10, Iss. 5, pp. 619644, available at:
UDC 339.7

O L E G   M O Z G O V Y I, 
Doctor of Econ Sci., Professor of the Department of International Finance,
Mozgovyi Oleg, 2018; 
O L E K S I I  S U B O C H E V,
Cand. of Econ Sci., Associate Professor of the Department of International Finance,
Subochev Oleksii, 2018; 
O K S A N A  Y U R K E V Y C H,
Cand. of Econ Sci., Associate Professor of the Investment Activity Department
Yurkevych Oksana, 2018;
Kyiv National Economic University named after Vadym Hetman

The article identifies basic models of Islamic finance industry and provides a critical assessment (compared to conventional finance) f mechanism of their functioning. Despite having obvious positive aspects, such as limitation of speculative or risky securitization, focusing on financing the real sector of economy and encouraging the direct interrelationship between financial and productive sectors, in our view, the mechanism of Islamic economics in some ways is at variance with a number of fundamental principles of effective economic activity.
Objective factors (demographic, political, economic) cause an increase of role and influence of the industry over regional financial markets and international finance and determine the relevance of further research in this area. Today, Islamic finance comprises such commercial areas as capital markets, asset management and insurance. They represent all segments of modern financial market commercial banking, operations with equity and venture capital, trade financing, insurance and even financial hedging.
Only a small share of Muslims financial relations is provided in accordance with Islamic law. Under conditions of introducing the convenient, liquid and standardized financial instruments and further improvement of regulation for financial markets, redistribution of resources in favor of Islamic financial markets, as well as rapid growth of their share in international finance are expected.
Keywords: Islamic finance, Islamic banking, financial model, riba, gharar, maysir, halal, financial development data, international finance (pp. 6578).
9. Yueh L. Islamic banking: Growing fast but can it be more than a niche market?  available at:
10. Islamic finance: Big interest, no interest. The Economist, September 13, 2014, available at:
11. Khan M., Ishaq M. Developments in Islamic Banking: the Case of Pakistan. Houndsmills, Basingstoke, Palgrave Macmillan, 2008.
12. Albalawi S. Banking system in islamic countries: Saudi Arabia and Egypt. A dissertation submitted to the school of law and the committee on graduate studies of Stanford University, available at:
13. Mozgovyi O.M., Subochev O.V., Yurkevych O.M. Osnovni modeli funktsionuvannya islamskykh finansiv [The basic models of Islamic finance: a critical review]. Investytsii: praktyka ta dosvid Investments: practice and experience, 2017, No. 6, pp. 2025, available at: [in Ukrainian]. 
14. Karim N., Tarazi M., Reilli Z. Islamic microfinance: an emerging market niche, available at:


BILORUS OLEG Theory of safe economic development (pp.79-82)

POPOVYCH OLEKSANDR An era of communication for earthlings as a chance to survive (pp.83-86)

KIM MATVII Labor is the source of human existence and the basis of its natural evolution (pp.87-89)
Known scientist-agrarian (pp. 9091)

Logical-historical school of institutional-economic research (pp. 9293)
In the memory of professor, doctor of economic sciences Mykola Yakubovskii (pp. 9495)
SUMMARIES (pp. 9698)



» All news
4, 2019
3, 2019
2, 2019
C O N T E N T S, No. 2, 2019  UDC 330.101  P E T R... »
No. 1, 2019
C O N T E N T S, No. 1, 2019  UDC 338.2; 330.101; 330.8 V... »
No. 11-12/ 2018
  C O N T E N T S, No. 11-12, 2018   GOVERNING THE... »
10, 2018
C O N T E N T S, No. 10, 2018    V A L E R I I   H... »
9, 2018
C O N T E N T S, No. 9, 2018      UDC 338.656.502 A... »
8, 2018
C O N T E N T S, No. 8, 2018      GOVERNING THE... »
7, 2018
6, 2018
C O N T E N T S, No. 6, 2018      UDC 339.92 Z... »
5, 2018
C O N T E N T S, No. 5, 2018    UDC 338.43.01(477) O... »
SCIENTIFIC DISCUSSIONS UDC 005.21:005.332.4:339.92(477) V O L O... »
All news

© "The economy of Ukraine"
Site development -