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The aim of this paper is to analyze if the Western Balkan and Eastern Partnership countries converge towards the twenty-eight members of the European Union. The relationships between the selected macroeconomic variables and per capita GDP growth rate are econometrically tested to support this research. The analyzed period is 2004–2017, with two sub-periods: 2004–2008 and 2009–2013. The subdivision is made to test whether the recent financial crisis affected the absolute and conditional convergence process in the analyzed group of countries. The empirical findings support the economic convergence hypothesis. The results show that the recent financial crisis negatively affected the absolute and conditional convergence process, when economic variables are included in the analysis. The negative effects of the crisis on conditional convergence with economic and socio-political variables are not identified. The poorer countries in the analyzed group should do more to attract investment and open their economies, as gross fixed capital formation and economic openness have a positive impact on per capita growth, and keep low inflation or stabilize it, while general government debt and unemployment should be decreased in the examined sample of countries.
Viktor Chuzhykov, Oleksandr Fedirko and Andrii Chuzhykov
The transformational 1990s significantly differentiated the regional model of Ukraine, which eventually began to resemble a system of uncontrolled chronic economic decline, as the existing planning and regulatory methods had become redundant, the market-based approaches being not actualized. The methodological vacuum in which Ukraine found itself did not allow regions to solve the existing problems by means of European economic convergence instruments. Despite the fact that more and more theories and concepts appeared in the leading developed countries (regional competitiveness, city- region, beautiful places, creative city, localization, etc.), national science used outdated ideas of planned regulation, inappropriate in market economy. The effect of government policies resembled core measures of the neoliberal model, while maintaining a high degree of administrative centralization.
FDI inflow fundamentally altered the regional landscape. The leading position in accumulating the FDI stock belonged to Kyiv, which also produced the largest per capita GDP. In the last five years a revival of innovation activity took place in the Ukrainian regions. Eventually it obtained an undulating character, moving basically along two axes: Lviv-Kviv and Kyiv-Kharkiv. However, low FDI level in the worst performing regions could create an erroneous impression about the positive impact of FDI on regional economy.
A region's development trajectory> might also be affected by the mentality of its inhabitants, as well as the media, whose impact can convey either a cohesive or disintegrating character. This was evidenced by the recent events in Ukraine, as well as the "East versus West” confrontation, which resulted in frustration, whereas the lack of tolerance among the population of certain regions provoked the bloodshed. Thus, identification of methodological background of post-Soviet regionalism on the example of Ukraine is an important scientific task, which may explain the essence of regional asymmetries in the post-Soviet states.
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The question is how the global and local economic actors’ innovation-based local social and environmental objectives and results can modify the social cohesion strategies, how the disparities in economic and social development can be measured and evaluated at regional level in addition to a comparison across countries. We have seen that any one indicator in itself is not enough since it does not provide sufficient explanation for either the development disparities or their reasons. Anyway, in addition to GDP per capita, it is worth applying - and it is important to apply - such indicators as SPI and Well-Being, and various indices of social progress.
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Рассчитано по данным Academic Departments, College of Arts and Sciences, University at Buffalo, www.pluto.fss.buffalo.edu Kondratev N.D., Osnovnyie problemyi ekonomicheskoy statiki i dinamiki. Predvaritelnyiy eskiz. M.: Nauka, 1991, p. 220–241.
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The economic potential of a country is directly related to a policy of creating new jobs, increasing labour productivity, balancing energy and materials consumption, technological innovation, refurbishing the production base, and taking action to create an environment for attracting investment and stimulating domestic consumption, as well as increasing exports of goods and services. A key feature of the economic system, that determines its ability to maintain normal living and working conditions for the population, is to guarantee and protect the sustainable development of the economy and the realisation of national economic interests. This article is addressed to two main economic security indicators - economic growth and investment activity of the state. It presents a specific comparison of real GDP per capita and growth rate in the European Union, the Eurozone and the Republic of Bulgaria and GDP per capita in purchasing power standards in the European Union, the Eurozone and the Republic of Bulgaria. The flow of foreign direct investment by economic sectors in the Republic of Bulgaria is been considered, including annual data, foreign direct investment flows by countries and the international position of the Republic of Bulgaria in this process
Ukraine-Krise. Zeitschrift für Außen-und Sicherheitspolitik, 7: 431-440.
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